During the period, the annual subsidy disbursement stood at ₹2,54,798.88 crore in 2022–23, ₹1,95,420.51 crore in 2023–24, ₹1,77,129.50 crore in 2024–25, and ₹49,329.88 crore in 2025–26 (up to July 21), bringing the cumulative total to ₹6,76,678.77 crore, according to an official statement.
Under the DBT system, 100% subsidy on various grades of fertilizers is released directly to fertilizer companies based on actual sales to farmers. These sales are authenticated through Aadhaar-enabled Point-of-Sale (PoS) devices installed at every retail outlet, ensuring transparency and efficiency in subsidy disbursement.
For urea, the government supplies it at a statutorily notified Maximum Retail Price (MRP) of ₹242 per 45 kg bag (excluding neem coating and applicable taxes). The difference between the delivered cost and the net market realisation is reimbursed to the manufacturer or importer as a subsidy.
In the case of Phosphatic and Potassic (P&K) fertilizers, the government has implemented the Nutrient-Based Subsidy (NBS) Policy since April 1, 2010. Under this policy, a fixed subsidy amount is provided based on the nutrient content, and the MRP is determined by fertilizer companies in line with market dynamics while being monitored by the government. This ensures affordability for farmers while maintaining transparency and sustainability in fertilizer distribution.
The DBT system allows farmers — including small, medium, and large-scale cultivators — to access fertilizers at subsidised rates on a no-denial basis. Any Aadhaar-authenticated buyer can purchase fertilizer, ensuring wide and equitable access, especially for poor and marginal farmers.
