Subsidised fertiliser pilot will soon begin as the government plans to link fertiliser purchases with farmers’ land records. The move targets excessive buying and aims to stop diversion of cheap fertilisers into the grey market. It also seeks to lower the subsidy burden, which has grown sharply in the last few years.
Subsidised fertiliser pilot will match demand with land size
Under this pilot, officials will compare the land area held by a farmer with the number of fertiliser bags purchased. Union minister JP Nadda said that some farmers use only 10 bags but still buy 50 bags at subsidised rates. The new system will limit such excess buying.
India supplies nearly 60 million tonnes of subsidised fertilisers every year. Imports meet about 18% of that demand. In 2024-25, urea subsidy alone cost ₹1.91 lakh crore. The government hopes to reduce this load by promoting rational use.
Government pushes states to cut chemical fertiliser use
The Centre is also running PM-PRANAM, a scheme that encourages states to reduce chemical fertiliser usage. Under this program, states receive incentives for adopting balanced nutrient practices and improving soil health. Fourteen states lowered fertiliser usage by 1.51 MT in 2023-24 compared with the average of the previous three years. This drop reflects stronger awareness and policy support.
India prepares for higher fertiliser imports
Despite reforms in usage, imports could rise due to strong domestic demand. The Fertiliser Association of India (FAI) expects fertiliser imports to increase 41% to 22.3 MT in FY26. Good monsoon rains triggered higher requirement this year. Between April and October 2025-26, India imported 14.45 MT, up 69% from last year.
FAI chairman S. Shankarsubramanian, who also leads Coromandel International, said that India secured large volumes recently. He also noted that there are no supply issues at present. Current stocks stand at 10.2 MT, which includes 5 MT urea, 1.7 MT DAP, and 3.5 MT NPK.
Why this pilot matters
The subsidised fertiliser pilot may change how India distributes fertilisers. It can reduce misuse, protect soil, and cut government spending. Better use of nutrients can also help farmers maintain productivity for the long term.
