With the beginning of the new year 2026, the Central Government has introduced a major and significant reform in the fertiliser subsidy system. One of India’s largest subsidy programmes the fertiliser subsidy has now been brought entirely under a digital framework. Nearly ₹2 lakh crore in annual fertiliser subsidy will now be processed through an integrated e-bill system, a move expected to significantly improve payment efficiency, monitoring, and transparency.
On the first day of January 2026, the Department of Fertilisers formally launched this new system for online subsidy processing. The digital platform was inaugurated at Kartavya Bhavan in New Delhi by Union Minister for Health & Family Welfare and Chemicals & Fertilisers, Jagat Prakash Nadda. With the implementation of this system, the entire process of subsidy claims, payments, and monitoring for fertiliser companies will be available on a single digital platform.
Union Minister J.P. Nadda said the initiative strengthens Prime Minister Narendra Modi’s vision of Digital India and a Developed India. He highlighted that the digitisation of fertiliser subsidy marks a major reform aimed at enhancing transparency, accountability, and operational efficiency. The reform is expected to directly benefit both fertiliser companies and farmers by ensuring smoother and more timely subsidy disbursement.
Fertiliser Secretary Rajat Kumar Mishra stated that the reform goes beyond eliminating paper-based bills. The new system will modernise the department’s entire financial operations. From raw material procurement to final product distribution and subsidy payments, every stage will now be digitally tracked on a single platform. This will not only strengthen monitoring but also support better and data-driven policy formulation.
Under the new arrangement, the Department of Fertilisers’ Integrated Financial Management System (IFMS) has been linked with the Ministry of Finance’s Public Financial Management System (PFMS). According to Chief Controller of Accounts Santosh Kumar, this technical integration will make all payments secure, traceable, and audit-ready. Each transaction will have a digital record, significantly reducing the scope for errors or irregularities.
Joint Secretary (Finance & Accounts) Manoj Sethi said the introduction of the e-bill system will address long-standing delays in subsidy payments. Subsidies can now be released on a weekly basis in a timely manner. Fertiliser companies will be able to submit their claims online and track payment status in real time.
End to Manual Follow-ups: The new digital system will also eliminate the need for frequent office visits and manual follow-ups. Senior officials from the Department of Fertilisers and the National Informatics Centre (NIC) were present at the launch event. Developed by NIC, the system is being seen as a crucial step towards stronger financial control and transparent governance.
Q1. What is Digital Fertilizer Subsidy 2026?
It is a fully online fertiliser subsidy processing system introduced by the Central Government in 2026.
Q2. How much subsidy is covered under this system?
Nearly ₹2 lakh crore annually will be processed digitally.
Q3. Who launched the digital fertiliser subsidy system?
Union Minister Jagat Prakash Nadda launched it on 1 January 2026.
Q4. How does it benefit farmers?
It ensures timely subsidy payments, smoother fertiliser supply, and better transparency.
Q5. Which platforms are integrated in this reform?
The Department of Fertilisers’ IFMS is integrated with the Ministry of Finance’s PFMS.
