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The government reported 4,84,663 raids conducted in 2025 against fertilizer black-marketing/hoarding, leading to 17,392 show-cause notices, 6,941 licence suspensions/cancellations and 847 FIRs; urea MRP remains ₹242/45kg bag under the Urea Subsidy Scheme.
Under the Nutrient Based Subsidy (NBS) Scheme (in force since 1 April 2010), DAP is kept at ₹1,350/50kg via additional support of ₹3,500/tonne for Kharif 2026; P&K fertilizer grades covered under NBS rose from 22 (2021) to 28.
To cut potash-import dependence, Potassium Derived from Molasses (PDM) — notified under the Fertilizer Control Order 1985 in 2009, inducted into NBS from 13.10.2021 — gets ₹345/tonne subsidy for Kharif 2026; GSI has established 456.52 million tonnes of potash resource in Rajasthan/Punjab since the 2015 MMDR Amendment Act.
Fertilizer availability (Urea, DAP, MOP, NPKS) was maintained across all States/UTs in FY2025-26, tracked via the Integrated Fertilizer Management System (iFMS).
Keep urea affordable for farmers
Key: MRP ₹242/45kg bag; gap between delivered cost and market realisation reimbursed to manufacturers/importers
Subsidise Phosphatic & Potassic (P&K) fertilizers based on nutrient content
Key: In force since 1.4.2010; 28 grades covered (up from 22 in 2021); DAP additional support ₹3,500/tonne for Kharif 2026; MRP guidelines (Jan 2024) cap importer/manufacturer/integrated-manufacturer margins at 8%/10%/12%
Domestic, sugar-industry-derived alternative to imported Muriate of Potash (MOP)
Key: Minimum 14.5% potash content; notified under Fertilizer Control Order 1985 in 2009; inducted into NBS from 13.10.2021; ₹345/tonne subsidy for Kharif 2026
Boost domestic exploration of critical minerals including potash
Key: Launched 2024-25; GSI took up 8 potash exploration projects (2024-25) and 6 more (2026-27) in Rajasthan/Punjab; 456.52 million tonnes of potash resource established since the MMDR Amendment Act, 2015
Regulates fertilizer registration, pricing notification and quality; PDM was notified under it in 2009
Basis under which GSI's potash exploration resource estimates (456.52 million tonnes) have been established
Governs pesticide registration; the Registration Committee evaluates efficacy/safety before granting registration; generic pesticide registration fee is ₹25,000 (Section 9(4)) vs ₹2,25,000 (Section 9(3))
Hoarding and 'paper trade' (billing without actual physical movement) create artificial scarcity precisely when farmer demand peaks at sowing time, letting intermediaries extract a price premium. Monitoring tools like iFMS track physical fertilizer movement in real time specifically to catch this gap between paper sales and actual delivery
Simple Analogy: It works like scalping event tickets — manufacturing a fake shortage right when demand is highest, then reselling at inflated prices
GS Paper 3 > Agriculture > Fertilizer Subsidy Policy
Recurring — fertilizer availability and enforcement data updated most Parliament sessions
Nutrient Based Subsidy Scheme — provides a fixed per-nutrient subsidy on P&K fertilizers, in force since 1 April 2010
Potassium Derived from Molasses — a sugar-industry by-product used as a domestic alternative to imported MOP