Current Affairs

DBT on Fertilizer Subsidy

Ministry of Chemicals and Fertilizers

azadi ka amrit mahotsav

Posted On:

01 APR 2022 3:30PM by PIB Delhi

Department of Fertilizers has successfully implemented Direct Benefit Transfer system across all States/U.Ts by 1st March 2018. Under the fertilizer DBT system, 100% subsidy on various fertilizer grades is released to the fertilizer companies on the basis of actual sales made to farmers/buyers through Point of Sale (PoS) devices installed at each retail shop.

Two extensive & independent evaluation studies were conducted by NITI Aayog appointed agency ‘M/s.   Micro Save’.  The    highlights   of   the assessment made by Microsave are as under:


  1. Implementation of DBT System has streamlined the Fertilizer distribution. Retailers and farmers in all districts reported “Nil shortage” of urea owing to neem coating.
  2. There is improved tracking through mFMS Id i.e Fertilizer companies have on-boarded untraceable retailers and co-operative depots on mFMS system to avoid delay in subsidy payments.
  3. Overcharging by retailers has reduced as each fertilizer purchase by farmers is supported by a receipt generated through PoS machines indicating both MRP paid by the farmers and the subsidy component paid by the Government on the quantity of fertilizer purchased by the farmers.
  4. Cross border sale has also reduced e.g across border to Nepal and Bangladesh from Kishanganj.
  5. The reports meant for relevant Stakeholders are available at and under Publications/ Reports tab.


    The number of buyers under DBT during the last two years is as follows:-

Year wise buyer count of all fertilizer products



No. of Aadhaar Buyer Count


FY 2020-21



FY 2021-22 (upto 28.03.2022)



The information was given by the Minister of State for Chemicals and Fertilizers, Shri Bhagwanth Khuba in a written reply in the Lok Sabha today.