Archive · 13 Nov 2025
Crisil to Review India's Fertilizer Subsidy Scheme for Fiscal Sustainability
The Indian government is asking a company called Crisil to look closely at how it helps pay for fertilizers for farmers.
This fertilizer subsidy is a big part of the government's spending.
They want to see if the way they are doing it is good for the country's money in the long run and if it helps farmers in the best way.
The goal is to make sure the money is used wisely and to find ways to make the system better.
They are also checking if the current system encourages farmers to use different kinds of fertilizers in a balanced way.
The review aims to suggest improvements without necessarily increasing government spending, unless it's absolutely necessary.
Crisil has been tasked by Niti Aayog to evaluate India's fertilizer subsidy scheme.
The scheme accounts for 45% of the Centre's budget for major subsidies.
The evaluation will focus on efficiency, fiscal sustainability, and promoting balanced fertilizer use.
Fertilizer subsidies have significantly increased in recent years, reaching a record Rs 2.55 lakh crore in FY23.
Recommendations should prioritize resource optimization and avoid increasing the financial burden on the government.
- Who
- Niti Aayog and Crisil
- What
- Undertaking an evaluation of the fertilizer subsidy scheme
- When
- Ongoing, with terms of reference established for assessment
- Where
- India
- Why
- To assess the efficiency and fiscal sustainability of the fertilizer subsidy scheme for policy intervention and optimize resource usage.
- Consulting Firm
- Crisil
- Initiating Body
- Niti Aayog
- Scheme Under Review
- Fertilizer Subsidy Scheme
- Subsidy's Budget Share
- 45% of Centre’s budget outgo on major subsidies
- NBS Policy Start Date
- April 1, 2010 (for P&K fertilizers)
- Urea Subsidy Scheme Start Date
- 1977 (Retention Price Scheme)
- Record Subsidy (FY23)
- Rs 2.55 lakh crore