Suggestion to Transfer Fertilizer Subsidies Directly to Farmers' Accounts

16-Mar-2026 05:54 PM

New Delhi. An agricultural market research firm has stated in its report that the government should utilize the current crisis—stemming from the ongoing conflict in West Asia—as an opportunity to reduce its dependence on fertilizer imports.

Furthermore, it should take the necessary steps to implement a Direct Cash Transfer (DCT) mechanism for providing fertilizer subsidies to farmers. Such a move would provide relief to all stakeholders.

The report suggests that this policy should be calibrated to align with the specific agricultural seasons.

The government currently provides substantial subsidies on chemical fertilizers, including urea. Instead, if the subsidy amount were transferred directly into the farmers' bank accounts, it would prove to be a more precise and beneficial approach.

This subsidy could be determined based on the specific crops cultivated by the farmers and the availability of irrigation facilities.

This would incentivize farmers to utilize a more balanced mix of nitrogen, phosphorus, and potassium, thereby helping to preserve the fertility of the soil.

Moreover, it would help curb the diversion of urea for non-agricultural purposes as well as its illicit export.