Fertiliser Subsidy to Farmers
Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan has once again advocated for a major reform in how India’s fertiliser subsidy is delivered, calling for the central government’s ₹1.7-trillion annual fertiliser subsidy to be transferred directly into farmers’ bank accounts through Direct Benefit Transfer (DBT).
The appeal came during his address at the Pusa Krishi Vigyan Mela at the Indian Agricultural Research Institute in New Delhi, underscoring the need for increased farmer empowerment and transparency in subsidy delivery.
Under the current system, fertiliser subsidies are routed to manufacturers and importers, who sell fertilisers at subsidised rates to farmers. The government then reimburses these companies. Chouhan argued that this indirect route dilutes the impact of the subsidy, leading to inefficiencies and even diversion of subsidised fertilisers to non-agricultural uses. Shifting to a direct transfer model, he said, would allow farmers the freedom to choose which fertilisers to buy and in what quantities, ensuring the subsidy reaches the actual end-user.
Although the DBT mechanism for fertilisers was introduced in 2018, it still operates via manufacturers — with subsidies paid only after verified retail sales. Chouhan’s proposal seeks to extend DBT further so that funds go straight to farmers, bypassing intermediaries altogether. He also called for a broader national debate on this reform, urging stakeholders, including agricultural scientists and policymakers, to weigh in on the practicalities and benefits.
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The minister’s push comes amid growing budgetary allocations for fertiliser subsidies — with the Union Budget for 2026-27 earmarking around ₹1.7 lakh crore for this purpose — and is aimed at strengthening agricultural support while curbing misuse of subsidised resources.
Chouhan’s proposal has sparked discussion on reforming one of India’s largest farm support programmes, with implications for farmer autonomy, subsidy efficiency and fiscal management.
Also Read: Shivraj Singh Chouhan pitches fertiliser subsidy revamp
