Direct Transfer of Fertiliser Subsidy Possible

Expenditure Secretary V. Vualnam stated that the Union Budget for FY27 focuses on fiscal prudence, quality expenditure, and other key issues. He emphasised that ensuring the availability of fertilisers to farmers remains a top priority for the government, and policies are being framed accordingly.

The government is making efforts to achieve its target of reducing fertiliser subsidy expenditure in FY27, while ensuring that farmers do not face any shortage. The primary commitment, he said, is to make fertilisers available to farmers strictly as per their actual requirements.

He noted that the Agriculture Ministry’s Agri Stack initiative is functioning effectively. In the coming period, greater use of information technology will enable the government to assess farmers’ fertiliser needs in terms of both usage and quantity with higher accuracy. This will help eliminate the need for farmers to repeatedly visit fertiliser outlets. Providing fertilisers based on genuine demand, rather than excess or misuse, is a clear policy objective.

On the possibility of transferring fertiliser subsidies directly to farmers, the Expenditure Secretary said that the option is under consideration and nothing has been ruled out. Given the vast size of the country and the wide geographical spread of farmers, direct benefit transfer is one of the approaches being evaluated.

The government, he added, is exploring technology-driven solutions to improve efficiency, reduce leakages, and ensure that subsidies reach the intended beneficiaries, while maintaining fiscal discipline and supporting the agricultural sector effectively.

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