The Government of India has reaffirmed that it intends to keep fertilizers reaching farmers on time and in adequate quantities, while cracking down hard on black marketing, hoarding, diversion, and the sale of sub-standard fertilizers. To back this up, a comprehensive mechanism is now in place aimed at keeping supplies uninterrupted, prices affordable, and enforcement tight across the country.
Planning Supply Season by Season
Before every cropping season begins, the Department of Agriculture & Farmers Welfare (DA&FW) works with State Governments to work out exactly how much fertilizer each state will need, month by month. Those projections then feed into the Department of Fertilizers’ monthly supply plans, and availability is tracked continuously from there. Every major subsidized fertilizer’s movement is monitored through the Integrated Fertilizer Management System (iFMS).
On top of that, the government finalizes fertilizer imports well ahead of time to close the gap between what’s produced domestically and what’s actually needed, stays in close touch with manufacturers and importers to keep supplies moving, coordinates with the Ministry of Railways to get fertilizer rakes priority movement, and leaves district-level distribution to the State Governments. Put together, this kept Urea, DAP, MOP, and NPKS adequately available across every State and Union Territory through FY 2025-26.
Here’s how the national numbers (in lakh metric tonnes) broke down for the year:
- Urea: Requirement of 381.45, availability of 450.79, and DBT sales of 396.60
- DAP: Requirement of 110.42, availability of 121.72, and DBT sales of 100.80
- MOP: Requirement of 26.82, availability of 30.58, and DBT sales of 22.56
- NPKS: Requirement of 158.49, availability of 198.97, and DBT sales of 150.37
Keeping Fertilizer Prices Within Reach
Affordability is being maintained through two schemes running in parallel: the Urea Subsidy Scheme and the Nutrient Based Subsidy (NBS) Scheme. Under the Urea Subsidy Scheme, a 45 kg bag of urea is still capped at ₹242 (not counting neem coating charges and applicable taxes), with manufacturers and importers reimbursed the difference between their delivered cost and what the market actually pays.
The NBS Scheme, which has been running since April 1, 2010, works differently, it subsidizes notified Phosphatic and Potassic (P&K) fertilizers based on their nutrient content and Point of Sale (PoS) data. For Kharif 2026, to hold DAP at ₹1,350 per 50 kg bag, the government added extra support of ₹3,500 per metric tonne on top of the regular NBS subsidy for imported and domestic DAP as well as imported TSP. This additional support is meant to absorb transportation costs, swings in international prices, the GST component baked into the MRP, and still leave a reasonable 4% return on net MRP (excluding GST).
Tightening the Rules Around the P&K Sector
The government has also gone further to steady the P&K fertilizer sector. Guidelines issued on January 18, 2024 set reasonable profit margin caps: 8% for importers, 10% for manufacturers, and 12% for integrated manufacturers.
New manufacturing units, along with expansions of existing capacity, are now recognized under the NBS Scheme, and the number of fertilizer grades covered by the scheme has grown from 22 in 2021 to 28 now. Freight subsidy on Single Super Phosphate (SSP) has continued since Kharif 2022 to encourage the use of phosphatic fertilizers made within the country. Nutrient subsidy rates themselves get reviewed twice a year to keep supply steady.
Cracking Down on Black Marketing and Malpractice
Enforcement against black marketing, hoarding, diversion, and sub-standard fertilizer sales remains under close watch. Figures from the DA&FW show that 4,84,663 raids were carried out nationwide through 2025, which led to 17,392 show-cause notices, the suspension or cancellation of 6,941 licences, and 847 FIRs registered against defaulters.
DA&FW keeps following up with State Governments to make sure enforcement stays strict and malpractices get stamped out. Seasonal fertilizer demand itself is worked out through Zonal Conferences for Agricultural Inputs, where States and Union Territories present projections based on gross cropped area, irrigated area, consumption patterns, and crop-wise nutrient recommendations tied to soil health data.
Ensuring Pesticides Are Safe and Effective
Pesticides get similar scrutiny. The Registration Committee, set up under the Insecticides Act, 1968, only registers a pesticide once its efficacy and safety have been evaluated. The Department of Agriculture & Farmers Welfare then periodically reviews already-registered pesticides against fresh scientific evidence, feedback from State Governments, and international developments around toxicity or environmental risk. As long as a registered pesticide is used exactly as its label and leaflet instruct, it shouldn’t pose any harm to people, animals, or the environment.
Watching for Pesticide Residues Nationwide
Since 2005-06, the government has run the Monitoring of Pesticide Residues at National Level (MPRNL) project to keep an eye on residue levels. Forty NABL-accredited laboratories test samples of vegetables, fruits, spices, cereals, pulses, herbs, fish and marine products, meat, eggs, tea, milk, and water gathered from across the country.
Monthly reports, including which samples cross the Maximum Residue Limits (MRLs) set by the Food Safety and Standards Authority of India (FSSAI) and any cases of off-label pesticide use, get shared with State Agricultural Departments so they can encourage safer, more judicious pesticide use and push Integrated Pest Management (IPM) practices.
Enforcing Quality Standards and Making Registration Easier
The Ministry also enforces the Insecticides Act, 1968 and the Insecticides Rules, 1971 to keep quality pesticides available. Insecticide Inspectors, appointed by both the Central and State Governments, routinely pull samples from manufacturing units and retail outlets for testing.
These samples go to notified Insecticide Analysts, and if a sample fails to meet the required quality standards, prosecution follows against the manufacturer or dealer involved. To make things more affordable and accessible, the Registration Committee fast-tracks registration for generic pesticides, and the registration fee under Section 9(4) is set at ₹25,000, a fraction of the ₹2,25,000 charged under Section 9(3) of the Act.
Key Takeaway: The Government of India’s fertilizer and pesticide management framework combines advance supply planning, targeted subsidies, digital monitoring, and strict regulatory enforcement to ensure that farmers have timely access to affordable and quality agricultural inputs. Through mechanisms such as the Integrated Fertilizer Management System (iFMS), the Urea Subsidy Scheme, the Nutrient Based Subsidy (NBS) Scheme, and coordinated Centre-State planning, the government seeks to maintain adequate fertilizer availability while curbing black marketing and hoarding.
At the same time, quality control under the Insecticides Act, 1968, nationwide monitoring of pesticide residues through the MPRNL project, and the promotion of Integrated Pest Management (IPM) reflect a broader strategy of balancing agricultural productivity with food safety, environmental protection, and sustainable farming practices.
M.C.Q.
Question 1: With reference to the Nutrient Based Subsidy (NBS) Scheme, consider the following statements:
- It is applicable to Phosphatic and Potassic (P&K) fertilizers.
- Subsidy is determined based on the nutrient content of fertilizers.
- Urea is covered under the NBS Scheme.
Which of the statements given above is/are correct?
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Question 2: The Monitoring of Pesticide Residues at National Level (MPRNL) project primarily aims to:
- A. Fix the retail prices of pesticides across India.
- B. Monitor pesticide residues in food and environmental samples to ensure compliance with prescribed safety standards.
- C. Promote exports of agricultural chemicals.
- D. Provide subsidies to pesticide manufacturers.
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