The Odisha Fertilizer Scheme has received approval from the state government with an allocation of ₹42 crore to strengthen fertilizer distribution through cooperative societies. The new initiative aims to improve fertilizer availability, reduce black marketing, and ensure farmers receive essential agricultural inputs on time during both the Kharif and Rabi seasons.
The scheme, titled “Interest Subvention on Cash Credit Loan for Prepositioning of Fertilizer,” will be implemented from the current financial year after receiving approval from the Finance Department.
Odisha Fertilizer Scheme Offers 100% Interest Support
Under the Odisha Fertilizer Scheme, the state government will provide 100% interest subvention on Cash Credit (CC) loans to Primary Agricultural Cooperative Societies (PACS) and Large-sized Adivasi Multipurpose Cooperative Societies (LAMPCS).
The financial assistance will enable cooperative societies to procure and stock fertilizers in advance without incurring interest costs. This is expected to improve fertilizer availability before the peak demand period and strengthen the cooperative supply network across the state.
Cooperative Share in Fertilizer Distribution to Reach 60%
The Odisha government plans to increase the cooperative sector’s share in fertilizer distribution from the current 25–30% to 60% beginning with the Kharif 2026 season.
By expanding the role of cooperatives, the government aims to reduce black marketing, improve fertilizer accessibility, and ensure that farmers receive fertilizers at government-notified prices throughout the year.
₹42 Crore Allocation and Digital Payment System
The Odisha Fertilizer Scheme has been allocated ₹42 crore for the five-year period from 2026-27 to 2030-31, with ₹5 crore earmarked for the current financial year.
Approximately 2,700 cooperative societies across Odisha are expected to benefit from the initiative. Eligible societies will receive Cash Credit limits of up to ₹10 lakh, depending on their operational requirements.
To improve transparency and accountability, the government will introduce QR code-based digital payment systems at cooperative fertilizer outlets, enabling secure and cashless transactions.
Market Outlook
The Odisha Fertilizer Scheme is expected to strengthen the state’s fertilizer distribution network by enhancing the financial capacity of cooperative societies. The initiative is likely to improve timely fertilizer availability, stabilize supply during peak agricultural seasons, and support higher crop productivity while ensuring farmers can purchase fertilizers at regulated prices. The scheme also reflects Odisha’s focus on strengthening rural cooperatives and promoting transparent fertilizer distribution across the state.
