Sales declined across 222 districts during Kharif 2026, helping the government save ₹1,470 crore in subsidy costs.
Fertilizer sales declined by 28% across 222 districts during the Kharif 2026 season under the Framework for Fertilizer Sales (FFS) pilot, helping the government save an estimated ₹1,470 crore in subsidy costs.
Under the pilot, farmers in selected districts were required to purchase subsidised fertilizers based on their land holdings and crop requirements. Fertilizer sales in the participating districts fell to 13.35 lakh tonnes during Kharif 2026 from 18.3 lakh tonnes a year earlier.
The decline came even as the number of farmers purchasing fertilizers increased. Nearly 46.97 lakh farmers bought fertilizers during the season, compared with 44.55 lakh in the previous year.
Officials said the system was designed to improve the distribution of subsidised fertilizers and reduce excessive use of crop nutrients. The pilot also introduced digital systems through which farmers could receive tokens indicating when they could collect fertilizers from retail outlets.
Several major agricultural states reported substantial declines in fertilizer sales. Telangana, Andhra Pradesh, Maharashtra, Uttar Pradesh, Bihar and Karnataka were among the states where sales fell significantly in districts covered by the pilot.
The reduction in fertilizer consumption has also been linked partly to lower rainfall in some regions. Officials and experts said weather conditions affected fertilizer demand during the season.
The pilot has faced policy resistance in some states. Punjab did not implement the programme, while Madhya Pradesh discontinued its participation following protests by farmers.
Agriculture Minister Shivraj Singh Chouhan defended the initiative, saying states had the option to decide whether to participate. He stressed the need to reduce excessive chemical-fertilizer use and prevent subsidised products from being diverted towards non-farm uses.
The government has also urged states to promote balanced nutrient use based on soil conditions and encourage organic and natural farming practices.
The reduction in fertilizer sales has helped lower the subsidy burden at a time when global fertilizer prices remain elevated. However, officials are also monitoring fertilizer availability and stocks ahead of the next agricultural season.
The FFS pilot represents an attempt to make fertilizer distribution more targeted while reducing unnecessary consumption and the fiscal cost associated with subsidies.
