Date: 2025-07-25Category: Not ApplicableState: Union GovernmentCountry: India
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 Aadhar authentication through POS devices installed at each retail shop
## Policy Summary: Fertilizer Subsidy Program in India (as of July 25, 2025)
This policy outlines the fertilizer subsidy program in India, administered by the Ministry of Chemicals and Fertilizers under the Direct Benefit Transfer (DBT) system. As of July 25, 2025, the program provides a 100% subsidy on various fertilizer grades to fertilizer companies based on actual sales to beneficiaries. Sales are verified through Aadhar authentication via Point of Sale (POS) devices installed at retail shops. All farmers, regardless of size, receive subsidized fertilizers on a "no denial" basis.
**Urea Subsidy:** Urea is provided to farmers at a statutorily notified Maximum Retail Price (MRP). The current MRP for a 45 kg bag of urea is Rs. 242, excluding neem coating charges and applicable taxes. The government provides a subsidy to urea manufacturers/importers to cover the difference between the delivered cost at the farm gate and the net market realization.
**PK Fertilizer Subsidy:** A Nutrient Based Subsidy (NBS) policy has been in effect since April 1, 2010, for Phosphatic and Potassic (PK) fertilizers. This policy provides a fixed, annually determined subsidy based on the nutrient content of subsidized PK fertilizers. Fertilizer companies set the MRP for these fertilizers based on market dynamics, subject to government monitoring.
**DBT Implementation:** The DBT system disburses subsidies to fertilizer manufacturing/importing companies (excluding imported urea) based on actual sales reported through POS machines. Buyer identity is verified through Aadhar-based authentication. Any Aadhar-authenticated beneficiary can purchase fertilizer.
**Financial Outlay (in Crores):** The total fertilizer subsidy provided by the Government from 2022-23 to 2025-26 (as of 21.07.2025) is as follows:
| Subsidy Scheme | 2022-23 | 2023-24 | 2024-25 | 2025-26 (as of 21.07.2025) | Grand Total |
|----------------|----------|----------|----------|-----------------------------|--------------|
| Imported PK | 36032.56 | 28929.57 | 18800.00 | 3977.77 | 87739.90 |
| Indigenous PK | 50089.67 | 36270.00 | 34010.00 | 10404.59 | 130774.26 |
| Indigenous Urea| 12731.05 | 10202.70 | 10331.50 | 30940.82 | 363598.37 |
| Imported Urea | 41365.60 | 28193.94 | 21000.00 | 4006.70 | 94566.24 |
| Total | 254798.88| 195420.51| 177129.50 | 49329.88 | 676678.77 |
**Source:** This information was provided by the Union Minister of State for Chemicals and Fertilizers, Smt. Anupriya Patel, in a written reply to a question in Lok Sabha. Release ID: 2148437.
Key Entities Referenced
Ministry of Chemicals and Fertilizers: The Indian government ministry responsible for the chemical and fertilizer industries.
DBT in Fertilizers: Direct Benefit Transfer system in fertilizers, a scheme for disbursing subsidies directly to beneficiaries or manufacturers.
Aadhar: A 12-digit individual identification number issued by the Unique Identification Authority of India.
POS devices: Point of Sale devices used for authenticating sales and disbursing subsidies in the fertilizer sector.
Urea: A nitrogen-based fertilizer widely used in agriculture.
Maximum Retail Price MRP: The statutorily notified maximum price at which urea is sold to farmers.
Nutrient Based Subsidy Policy: A policy implemented by the government for Phosphatic and Potassic (PK) fertilizers, providing a fixed subsidy based on nutrient content.
Smt Anupriya Patel: The Union Minister of State for Chemicals and Fertilizers.
Ministry of Chemicals and Fertilizers
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 Aadhar authentication through POS
devices installed at each retail shop
Urea is provided to the farmers at a statutorily
notified Maximum Retail Price (MRP)
Posted On: 25 JUL 2025 5:18PM by PIB Delhi
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 Aadhar authentication through POS devices
installed at each retail shop. All farmers (including small, medium and large farmers) are being supplied
fertilizers at the subsidized rates on no-denial basis. The details of total fertilizer subsidy provided by
the Government from 2022-23 to 2025-26 (as on 21.07.2025) are as follows:
(Amount in Crores)
Subsidy Schemes
Gran
Financial Impo Indig Indig Impo
d
Year rted enous enous rted
Total
P&K P&K Urea Urea
36032 50089 12731 41365 25479
2022-23
.56 .67 1.05 .60 8.88
28929 36270 10202 28193 19542
2023-24
.57 .00 7.00 .94 0.51
18800 34010 10331 21000 17712
2024-25
.00 .00 9.50 .00 9.50
2025-26
3977. 10404 30940 4006. 49329
( a s o n
77 .59 .82 70 .88
21.07.2025)
87739 13077 36359 94566 67667
Grand Total
.90 4.26 8.37 .24 8.77
With regard to urea fertilizer, urea is provided to the farmers at a statutorily notified Maximum Retail Price
(MRP). The MRP of 45 kg bag of urea is Rs. 242 per bag (exclusive of charges towards neem coating and
taxes as applicable). The difference between the delivered cost of urea at farm gate and net market realization
by the urea units is given as subsidy to the urea manufacturer/importer by the Government of India.
Accordingly, all farmers are being supplied urea at subsidized rates.
In respect of P&K Fertilizers, the Government has implemented Nutrient Based Subsidy Policy w.e.f.01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under the policy, a fixed amount of subsidy,
decided on annual basis, is provided on subsidised P&K fertilizers depending on their nutrient content. Under
this policy, MRP is fixed by fertilizer companies as per market dynamics at reasonable level which is
monitored by the Government. Accordingly, any farmer who is buying these fertilizers is getting benefits of
subsidy.
The DBT system entails payment of subsidy to the Fertilizers manufacturing/importing companies (except
imported Urea) on the basis of actual sales through PoS machines by the retailer to the beneficiary. The
buyer’s identity is verified through Aadhar based authentication. Sale of fertilizer is being done on a ‘no
denial basis’ since there is no defined beneficiary. Any Aadhar authenticated beneficiary can purchase
fertilizer on the basis of Aadhaar authentication including poor and marginal farmers.
This information was given by the Union Minister of State for Chemicals and Fertilizers Smt Anupriya Patel
in Lok Sabha in a written reply to a question today.
*****
MV/AKS
(Release ID: 2148437)