New Delhi, February 25, 2026 — India’s Union Agriculture Minister Shivraj Singh Chouhan has proposed a significant reform in the way fertiliser subsidies are distributed, suggesting that the subsidy should be transferred directly into farmers’ bank accounts instead of being routed through fertiliser companies.
Speaking at the Pusa Krishi Vigyan Mela held at the Indian Agricultural Research Institute (IARI) campus, Chouhan said that the government currently spends about ₹1.7 lakh crore annually on fertiliser subsidies, but these funds are largely credited to fertiliser manufacturers rather than reaching farmers directly. Under the proposed system, the subsidy would be paid into farmers’ bank accounts through Direct Benefit Transfer (DBT).
Proposal Aims to Empower Farmers
Chouhan highlighted that if the subsidy was deposited directly into farmers’ accounts, they would be free to choose which fertilisers to purchase and in what quantities, ensuring that the actual beneficiary of the subsidy is the farmer applying it to the fields. Currently, fertiliser subsidies are claimed by companies only after verified retail sales are recorded.
He pointed out that although a subsidy system using DBT was introduced in 2018, it still benefits companies because the subsidy is released to manufacturers after they verify sales to farmers. The proposed change would shift the focus to farmers themselves, allowing them to make independent decisions on fertiliser purchases and promoting transparency in the subsidy delivery process.
Supporting Agricultural Reforms
Chouhan also called for stronger monitoring of funds provided for agricultural mechanisation and irrigation technologies, such as drip irrigation and polyhouses, to ensure they reach genuine beneficiaries and improve farming efficiency.
The minister’s proposal has sparked discussions on modernising agricultural subsidy mechanisms and empowering farmers with greater control over input resources.