Govt says direct transfer of fertilizer subsidy to farmers not under consideration yet
New Delhi, July 24
The government on Friday said it is not considering direct transfer of fertilizer subsidy into farmers' bank accounts at present, saying the database of identified farmers is not yet complete.
In a written reply to a question in the Lok Sabha, Chemicals and Fertilizers Minister Jagat Prakash Nadda said the existing Direct Benefit Transfer (DBT) system for fertilizers will continue, under which subsidy is paid to fertilizer companies after fertilizers are sold to beneficiaries through Aadhaar-authenticated transactions.
"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," the minister said.
The government clarified that direct cash transfer of fertilizer subsidy to farmers is not being planned for now.
"As on date, since the database of identified farmers is not saturated, the direct cash transfer is not envisaged till now," the reply said.
The clarification came in response to a question on whether the government proposes to simplify and make fertilizer subsidy transfers more transparent by depositing the benefits directly into farmers' bank accounts to reduce input costs.
The reply also said fertilizer sales under the current DBT system are authenticated through Aadhaar-enabled point-of-sale devices installed at every fertilizer retail outlet before subsidy claims are released to companies.
Nadda also assured the parliament that there is no shortage of fertilizers in Uttar Pradesh.
"The availability of fertilizers, viz. Urea, DAP, MOP and NPKS, in the State of Uttar Pradesh during the ongoing Kharif 2026 season is adequate."
The government, however, also revealed large-scale enforcement action against fertilizer-related violations.
"Further, the Department of Agriculture and Farmers Welfare (DA&FW) in consultation with the State Government is regularly monitoring the enforcement action taken by State Government against the cases of Black marketing, Hoarding, Sub-standard and Diversion on weekly basis," the minister said.
The reply added that between April 2026 and July 17, 2026, authorities in Uttar Pradesh conducted 9,687 raids, issued 1,083 show-cause notices, suspended or cancelled 548 licences, and registered 38 FIRs against defaulters.
The written reply was tabled in the Lok Sabha in response to questions on fertilizer subsidy, availability and distribution during the ongoing Kharif season.
— ANI
Reader Comments
Honestly, I think this is a practical approach for now. Direct cash transfers can work only if we have a complete and verified database of all farmers. With lakhs of small and marginal farmers, many without proper land records, moving too fast could lead to massive leakages. The current DBT system at least ensures subsidy reaches actual buyers through Aadhaar authentication. Better to perfect the database first. 👍
Ye fertilizer companies ko subsidy dena band karo yaar! Directly kisaan ke bank account mein daal do. Abhi bhi kitne middlemen kaam kar rahe hain. Aaj kal Urea bhi black market mein mil raha hai. 9,687 raids karke kya hua? Ab bhi farmers ko proper price nahi mil raha. Direct cash transfer se transparency aayegi. Nadda ji, thoda practical sochiye!
A very sensible decision by the government. Direct cash transfers can lead to misuse, with non-farmers claiming subsidy. In the current system, subsidy is linked to actual purchase via Aadhaar. This ensures only genuine farmers benefit. Plus, it prevents money from being diverted to other uses. The database issue is real - in our village, many new farmers aren't registered yet. Let's first fix the basics before rushing into a new system.
Interesting to see India's cautious approach to direct benefit transfers in agriculture. I work in agri-tech and have seen similar debates in other countries. The biggest challenge is always farmer identification. In India's case with millions of smallholders, I understand the hesitation. But maybe a phased pilot in a few districts with good land records could help test the model? The enforcement numbers (548 licenses cancelled, 38 FIRs) show there's still a black market to tackle.
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