Centre Proposes Direct Fertiliser Subsidy Transfer to Farmers’ Bank Accounts

On 25 February 2026 , Union Agriculture Minister Shivraj Singh Chouhan proposed a major reform in India’s fertiliser subsidy system during the Pusa Krishi Vigyan Mela in New Delhi. The government currently allocates nearly ₹1.7 lakh crore annually as fertiliser subsidy, which is routed to fertiliser companies to keep prices affordable for farmers.

Under the proposed Direct Benefit Transfer (DBT) model, the subsidy amount would be transferred directly into farmers’ bank accounts. This would allow farmers to decide which fertilisers to purchase and in what quantity, based on their crop requirements. The move aims to improve transparency, reduce leakages, and empower farmers with greater financial control

The proposal is expected to bring structural changes in the fertiliser distribution system. However, discussions are ongoing to ensure smooth implementation and to protect small and marginal farmers during the transition phase