To control rising subsidy costs and the unbalanced use of fertilisers in the country, the central government is taking a significant step. Chemicals and Fertilisers Minister JP Nadda informed Parliament that the government will launch a pilot project linking subsidised fertiliser distribution to the size of farmers’ landholdings. The aim is to curb unnecessary demand and prevent instances where farmers procure far more fertiliser than they actually need.
How the Pilot Project Will Change Distribution
The government says that many farmers are using more fertiliser than is necessary for their cultivation. Nadda cited an example, stating that if a farmer’s land requires only 10 bags of fertiliser, they might take up to 50 bags. This imbalance not only increases the subsidy burden but also fuels the sale of heavily subsidised nutrients in the black market. The new pilot system will ensure the distribution of fertilisers according to actual need.
Emphasis on Balanced Nutrition for Soil Fertility
The government is continuously working on measures to reduce the excessive use of chemical fertilisers. Under the PM-PRANAM program, states have been advised to adopt balanced nutrient use and integrated nutrient management. These steps aim to maintain soil fertility and ensure sustainable production in the long run. In August, the ministry reported that fourteen states had recorded a reduction of 1.51 million tonnes in their fertiliser consumption compared to the three-year average.
Government’s Heavy Expenditure on Subsidies
India distributes approximately 60 million tonnes of subsidised fertilisers annually. Around 18 percent of this is met through imports. In the financial year 2024-25, a subsidy of ₹1.91 lakh crore was spent on urea alone, which has become a major financial challenge for the government. This is why there is an emphasis on making the subsidy structure more transparent and based on actual needs. Significant Increase in Fertiliser Imports Projected in the Coming Years
The Fertiliser Association of India (FAI) has projected that the country’s fertiliser imports could increase by 41 percent to reach 22.3 million tonnes in 2025-26. Improved monsoon rains and a sudden surge in domestic demand have been cited as the main reasons for this increase. Between April and October 2025-26, India imported 14.45 million tonnes of fertilisers, an increase of approximately 69 percent compared to the previous year. FAI Chairman S. Shankarasubramanian stated that India has entered into large-scale import contracts and that supplies will remain smooth in the coming months.
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The country currently has a stock of 10.2 million tonnes of fertilisers, including 5 million tonnes of urea, 1.7 million tonnes of DAP, and 3.5 million tonnes of NPK. According to the industry, there is no shortage of fertilisers.