India's fertiliser subsidy system needs overhaul beyond tech fixes

India's fertiliser subsidy programme, which costs the government billions annually, requires comprehensive reforms that go beyond implementing digital verification systems, according to policy analysts. While technology-based solutions like digitisation of beneficiary records have been proposed to reduce leakages and improve efficiency, they risk creating new barriers for legitimate farmers if land documentation remains incomplete or inconsistent across states.

The challenge lies in balancing two competing objectives: reducing wastage and ensuring that smallholder farmers—who often lack perfectly documented land titles—continue to access subsidised fertilisers at affordable prices. Many agricultural regions across India still grapple with land record gaps, making it counterproductive to condition subsidy access on perfect documentation.

Experts argue that the subsidy system's fundamental architecture needs rethinking. Current approaches often subsidise fertiliser quantities regardless of actual crop requirements or soil conditions, leading to overuse and environmental degradation. A more targeted approach could involve soil-testing programmes and crop-specific subsidy frameworks, combined with gradual digitisation of land records rather than making it a prerequisite for access.

State-level variations in implementation also complicate the picture. While some regions have advanced land records, others lag significantly, making a uniform national policy challenging. Policymakers are being urged to pursue phased reforms that strengthen record-keeping alongside subsidy delivery, rather than restricting access based on current documentation gaps.

The fertiliser subsidy debate reflects broader tensions in agricultural policy between fiscal sustainability and ensuring farm livelihoods remain viable across India's diverse agricultural landscape.