The Centre is not in a hurry to link fertiliser sales with actual requirement though it has claimed significant reduction in sales in a pilot project currently undergoing in Haryana. States like Andhra Pradesh, Telangana, Madhya Pradesh and Maharashtra are keen to start similar (to Haryana) or even better model to cut unnecessary use of chemical fertilisers.
The Department of Fertilisers has recently informed the Parliamentary Standing Committee that the pilot is at an early stage and may be independently evaluated before considering expansion to other States. However, many experts have suggested national roll out of the pilot amid the current supply disruption after Iran war.
Under the pilot in last Rabi sowing season in Haryana, Urea consumption declined by 1,25,986 tonne and DAP consumption by 23,489 tonne between October 8, 2025 and February 18, 2026, compared to the corresponding period of the previous year, resulting in an estimated subsidy saving of ₹700.53 crore, officials said.
“The reduction suggests that earlier purchases may have exceeded crop area requirements, with possible diversion or bulk concentration among high-volume buyers, which the crop-linked digital authentication mechanism has helped curb,” the government informed the panel.
Sale of subsidised fertilisers is presently carried out on a “no-denial” basis across the country, except Haryana, where it is linked to beneficiaries registered on the state government’s Meri Fasal Mera Byora (MFMB) portal. Under this pilot project, the Centre has linked the PoS-based sales of fertilisers with the database of the MFMB portal.
Under this system, a registered farmer, family member or cultivator can purchase subsidised fertilisers through PoS devices at retail outlets. The identity of the designated farmer (landowner) is authenticated through biometric verification in case of direct purchase, or through SMS-based OTP verification when the purchase is made by a family member or cultivator.
The pilot was conducted in three phases – first, the open sale with passive matching for observation, secondly, open sale with active matching for observation, and third, enforcement of buyer restriction along with risk management measures.
The average quantity purchased per buyer declined by about 11.6 per cent for Urea (from 1.33 tonne to 1.18 tonne) and by 18.7 per cent for Phosphate (P) and Potash (K) fertilisers (from 0.75 tonne to 0.61 tonne). It demonstrated the system’s effectiveness in curbing bulk procurement and ensuring more equitable access to subsidised fertilisers among farmers, officials said.
The Haryana experience also showed that there has been a significant increase in small-scale buyers purchasing less than 10 bags — almost 50 per cent — while buyers purchasing 10 to 20 bags account for 37.8 per cent. Conversely, there has been a decline in larger purchases, with a 35 per cent reduction in the 40 to 50 bag category and a 10.5 per cent decrease in the 30 to 40 bag segment. Overall, Urea consumption has decreased by 10.9 per cent, and DAP by 24.9 per cent. The total number of urea buyers has reduced by 2.3 per cent, and P and K buyers by 8 per cent.
Published on March 14, 2026
