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Agriculture Minister Proposes DBT for ₹1.70 Lakh Crore Fertiliser Subsidy to Farmers, Replacing Company-Based System

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
25 Feb 2026
~2 min
Source: Indian Express
Key Data:₹1.70 lakh crore fertiliser subsidy FY26-27₹1.16 lakh crore urea subsidy₹54,000 crore nutrient-based subsidy8.5 crore farmers' IDs generated329 lakh tonnes fertiliser consumption 2024-25
Bodies:Ministry of Agriculture and Farmers WelfareICAR
Practice MCQs from today's news ▸
What This Article Covers

1.Agriculture Minister Shivraj Singh Chouhan proposes DBT for fertiliser subsidy directly to farmers, replacing company-based subsidy system.

2.Fertiliser subsidy allocation for FY 2026-27 is ₹1.70 lakh crore, with urea subsidy at ₹1.16 lakh crore and nutrient-based subsidy at ₹54,000 crore.

3.The proposal aims to curb diversion of subsidised fertilisers to industries and ensure farmers receive intended benefits using 8.5 crore farmer IDs.

The Big Picture
Prelims · HighMains · Medium

Union Agriculture Minister Shivraj Singh Chouhan has proposed a major shift in fertiliser subsidy distribution by suggesting Direct Benefit Transfer (DBT) to farmers' bank accounts, replacing the current system of routing subsidies to companies. This move aims to address diversion and leakage issues in the current system, where the government allocated ₹1.70 lakh crore for fertiliser subsidy for FY 2026-27. The proposal leverages existing 8.5 crore farmer IDs for targeted delivery.

Exam Lens

Quick Exam Facts From News

Fertiliser Subsidy FY26-27₹1.70 lakh crore
Urea Subsidy Component₹1.16 lakh crore
Nutrient-Based Subsidy₹54,000 crore
Farmers' IDs Generated8.5 crore
Fertiliser Consumption 2024-25329 lakh tonnes

1-Minute Revision

  • ›Fertiliser Subsidy FY26-27: ₹1.70 lakh crore
  • ›Urea Subsidy Component: ₹1.16 lakh crore
  • ›Target this Data: Fertiliser subsidy allocation for FY 2026-27 is ₹1.70 lakh crore
  • ›Target this Nodal Body: Ministry of Agriculture and Farmers Welfare
  • ›Target this Scheme: Direct Benefit Transfer (DBT) for fertiliser subsidy

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which ministry is responsible for implementing the proposed Direct Benefit Transfer for fertiliser subsidy as mentioned in the news?

Q2Statement-basedHard

Consider the following statements regarding the fertiliser subsidy mentioned in the news:

1. The total fertiliser subsidy allocation for FY 2026-27 is ₹1.70 lakh crore.

2. The urea subsidy component is ₹54,000 crore while nutrient-based subsidy is ₹1.16 lakh crore.

3. India's total fertiliser consumption in 2024-25 stood at 329 lakh tonnes.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the news article, how many farmers' IDs have been generated so far that can be used for Direct Benefit Transfer of fertiliser subsidy?

Q4Application/ImpactMedium

What is the primary objective behind the proposal to shift fertiliser subsidy to Direct Benefit Transfer (DBT) as mentioned in the news?

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