**Executive Summary**
This document presents a response to a starred question in the Lok Sabha regarding the transparency and effectiveness of the fertilizer subsidy system in the Sonipat Lok Sabha constituency. It addresses concerns about farmers accessing subsidies, the quality of fertilizers, funds allocation, government inspections, and future plans for improving the subsidy system. The question was to be answered on 06.02.2026.
**Key Points / Main Content**
* **Fertilizer Availability and Sales:**
* Farmers in the Sonipat Lok Sabha constituency are receiving subsidized fertilizers.
* Details of fertilizer availability, Aadhaar-authenticated PoS sales, and present stock are provided for Urea, DAP, NPK, and SSP.
* **Quality Control and Enforcement:**
* Fertilizers are classified as essential commodities, empowering State Governments to act against black-marketing and overpricing.
* The Government of Haryana has not received complaints about low-quality fertilizers in Sonipat.
* Regular inspections are conducted in the Sonipat district; from April 1, 2025, to January 31, 2026, 152 fertilizer samples were drawn, with 3 found non-standard, leading to action under the Fertilizer Control Order, 1985.
* **Subsidy Disbursement:**
* Under the Direct Benefit Transfer (DBT) system, 100% subsidy on various fertilizer grades is released to fertilizer companies based on actual sales to beneficiaries via Aadhaar authentication through PoS devices.
* Funds are not allocated in a district-wise or constituency-wise manner.
* Details of total funds allocated and expenditure incurred under the fertilizer subsidy scheme from 2020-21 to 2025-26 are provided.
* **Transparency and Efficiency Measures:**
* The DBT in Fertilizers mechanism ensures transparency in subsidy disbursal.
* Farmers are supplied fertilizers at subsidized rates on a no-denial basis.
* Fertilizer companies submit weekly subsidy claims based on PoS-recorded sales.
* An integrated e-bill system has been introduced to reduce manual processes and accelerate payment workflow.
* The Meri Fasal Mera Byora (MFMB) portal of Haryana is integrated with the iFMS to enable transparent and real-time fertilizer delivery; farmers register land details on the MFMB portal (Haryana residents require Parivar Pehchan Patra for registration, non-residents can register using Aadhaar card), and the data is transmitted to iFMS within 30 seconds, making farmers instantly eligible to receive subsidized fertilizers.
**Impact Analysis**
**Stakeholder: Farmers in Sonipat Lok Sabha Constituency**
* **Impact**: Ensured access to subsidized fertilizers and a more transparent and efficient subsidy system.
* **Action Required**: Register land details on the MFMB portal, providing either a Parivar Pehchan Patra (if a Haryana resident) or an Aadhaar card (if not a resident).
**Stakeholder: State Government of Haryana**
* **Impact**: Responsible for taking action against black-marketing and overpricing of fertilizers and ensuring the quality of fertilizers through regular inspections and sample testing.
* **Action Required**: Continue to conduct regular inspections, take action against non-standard fertilizers, and address any future complaints regarding the sale of low-quality fertilizers.
**Stakeholder: Fertilizer Companies**
* **Impact**: Receiving subsidy payments based on actual sales to beneficiaries through Aadhaar-authenticated PoS devices.
* **Action Required**: Generate and submit weekly subsidy claims based on PoS-recorded sales.
**Stakeholder: Government of India (Department of Fertilizers)**
* **Impact**: Responsible for the overall administration and monitoring of the fertilizer subsidy system.
* **Action Required**: Continue to implement and improve the DBT system, ensure the effective functioning of the integrated e-bill system, and monitor the impact of the integration of the MFMB portal with the iFMS.
Key Entities Referenced
Direct Benefit Transfer (DBT) in Fertilizers: A mechanism implemented to ensure transparency in fertilizer subsidy disbursal, releasing subsidy to fertilizer companies based on actual sales to beneficiaries through Aadhaar authentication.
Ministry of Chemical and Fertilizers: The primary ministry responsible for matters related to chemical and fertilizers, including the administration of fertilizer subsidies.
Fertilizer Control Order, 1985: A regulatory order notified under the Essential Commodities Act, 1955, which governs the quality control, pricing, and distribution of fertilizers.
Essential Commodities Act, 1955: An act declaring fertilizers as an essential commodity, empowering State Governments to take action against black-marketing and overpricing.
Haryana: The state where inspections are carried out and Meri Fasal Mera Byora (MFMB) portal is integrated with the Integrated Fertiizers Management System (iFMS).
GOVERNMENT OF INDIA
MINISTRY OF CHEMICAL AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
STARRED QUESTION NO 109 TO BE ANSWERED ON: 06.02.2026
Transparency and Effectiveness in Subsidy System
+*109: Shri. Satpal Brahamachari
Will the Minister of CHEMICAL AND FERTILIZERS be pleased to state:
(a) whether the Government is aware that the farmers in the Sonipat Lok Sabha
constituency are not getting the benefits of fertilizer subsidies, if so, the details thereof;
(b) whether complaints have been received about the sale of low-quality or sub-standard
fertilizers at some places in the said constituency, if so, the details thereof;
(c) the amount of funds allocated and disbursed under fertilizer subsidy in the said
constituency from the financial year 2021 till date;
(d) whether the Government is carrying out regular inspections, sample testing and taking
action against erring sellers to ensure the quality of fertilizers, if so, the details thereof;
and
(e) the future action plan of the Government to make the subsidy system more transparent
and effective in the interest of the farmers?
ANSWER
THE MINISTER OF CHEMICALS AND FERTILIZERS
(SHRI JAGAT PRAKASH NADDA)
______________________________________________________________________
(a) to (e) : The Statement is laid on the table of the House.
*****-2-
STATEMENT REFERRED TO LOK SABHA STARRED QUESTION NO. 109 FOR
06.02.2026 REGARDING “TRANSPARENCY AND EFFECTIVENESS IN SUBSIDY
SYSTEM”
(a) Farmers of Sonipat Lok Sabha Constituency are getting subsidized fertilizers. The
details of availability of fertilizer sale and sale to the buyer through Aadhaar authenticated
PoS sale is as under:
(In MT)
Fertilizer Availability Sale Present Stock
Urea 2,69,100 1,21,215 1,47,886
DAP 63,874 24,284 39,590
NPK 17,479 3,424 14,055
SSP 33,143 5,264 27,880
(b) Fertilizers are declared as an essential commodity under the Essential
Commodities Act, 1955 and notified under Fertilizer Control Order, 1985. State
Governments are empowered to take action against persons involved in black-marketing/
overpricing, as per provisions of EC Act. Any complaints received at Department of
Fertilizers level regarding black marketing/over-pricing of fertilizers is sent to concerned
State Government to take appropriate action under Essential Commodities Act, 1955 and
Fertilizer Control Order, 1985. As informed by Government of Haryana, no such
complaints have been received about the sale of low-quality or sub-standard fertilizers at
some places in Sonipat constituency.
(c) Under the ‘DBT in Fertilizers’ system, 100% subsidy on various fertilizer grades is
released to the fertilizer manufacturing/ importing companies, on actual sales to the
beneficiaries based on Aadhaar authentication through PoS devices installed at each
retail shop. Funds are not allocated or disbursed in a district-wise or constituency-wise
manner. The details of total funds allocated and expenditure incurred under the various
fertilizer subsidy scheme is as under;
(Rs. In Crores)
Financial Year Allocation Expenditure
2020-21 1,38,527.30 1,31,229.50
2021-22 1,62,072.12 1,57,640.09
2022-23 2,54,798.93 2,54,798.93
2023-24 1,95,421.00 1,95,420.51
2024-25 1,77,129.50 1,77,129.50
2025-26 2,01,961.50 1,85,887.94-3-
(d) Fertilizers are declared as an essential commodity under the Essential
Commodities Act, 1955 and notified under Fertilizer Control Order, 1985. State
Governments are empowered to take action against persons involved in black-marketing/
overpricing, as per provisions of EC Act. Any complaints received at Department of
Fertilizers level regarding black marketing/over-pricing of fertilizers is sent to concerned
State Government to take appropriate action under Essential Commodities Act, 1955 and
Fertilizer Control Order, 1985. As informed by the State Government of Haryana, regular
inspections are carried out by the Fertilizer Inspectors in Sonipat district. From 1st April
2025 to 31st January 2026, 152 fertilizer samples were drawn. Out of these, 03 samples
were found non-standard, and action taken as per the Fertilizer Control Order, 1985.
(e) To ensure transparency in fertilizers subsidy disbursal mechanism, the Direct
Benefit Transfer (DBT) in Fertilizers mechanism has been implemented. Under 'DBT in
Fertilizers' system, 100% subsidy on various fertilizer grades is released to the fertilizer
companies, on actual sales to the beneficiaries based on Aadhaar authentication through
PoS devices installed at each retail shop. Accordingly, all farmers are being supplied
fertilizers at the subsidized rates on no-denial basis. Fertilizer companies generate/submit
weekly subsidy claims based on PoS-recorded sales, which are processed on First-In-
First-Out (FIFO) basis, subject to completeness of claims, with a view to ensuring effective
monitoring, timely settlement and efficient fund management. Further, for digital
management of fertilizer subsidy payments at a large scale, the Government has recently
introduced an integrated e-bill system. This digital system is aimed at reducing manual
and paper-based processes, accelerating the payment workflow, and enhancing
transparency and accountability in the subsidy payment process.
Further, to make delivery of subsidized fertilizers more effective, the Government
of India has integrated Meri Fasal Mera Byora (MFMB) portal of the Government of
Haryana with the Integrated Fertiizers Management System (iFMS) of Government of
India with effect from 08.10.2025 to enable transparent and real-time fertilizer delivery to
identified farmers. Under this system, farmers register their land details on the MFMB
portal of the State Agriculture Department. For land registration, Haryana residents
require only the Parivar Pehchan Patra, while non-residents can register using their
Aadhaar card. Upon successful registration, the farmer’s land and personal details are
automatically transmitted to iFMS within about 30 seconds. This real-time integration
eliminates manual verification and duplication. Consequently, farmers become instantly
eligible to receive subsidized fertilizers.
*****