Parliamentary Panel Calls for Aadhaar-Farmer Registry Integration to Tackle Fertiliser Diversion
Amid growing concerns over the diversion of subsidised fertilisers, a parliamentary committee has strongly recommended that the government accelerate the integration of Aadhaar authentication with a comprehensive "farmer's registry." This move aims to enhance the targeting of fertiliser subsidies and prevent unauthorised buyers from exploiting the system.
Discrepancies in Fertiliser Buyer Data Raise Alarms
The Standing Committee on Chemicals and Fertilisers, in a report submitted to Parliament, highlighted significant discrepancies in fertiliser subsidy data. According to the fertiliser department's submission, the Integrated Fertiliser Management System (iFMS) portal has identified approximately 18.7 crore unique buyers under the Direct Benefit Transfer (DBT) system. However, only 6.25 crore buyers had availed the fertiliser subsidy as of January 2025.
This figure starkly contrasts with the PM-KISAN database maintained by the agriculture ministry, which records 9.8 crore farmers. The panel, chaired by Congress MP Kirti Azad, emphasised that this inconsistency underscores the urgent need for further scrutiny to identify genuine beneficiaries and curb potential misuse.
Risks of Diversion and Black-Marketing
The committee expressed deep concern that the current buyer identification process under the DBT scheme relies solely on Aadhaar authentication on a 'no denial basis,' without a robust mechanism to verify the actual beneficiaries. This loophole makes subsidised fertilisers, particularly urea, vulnerable to diversion for various illicit purposes.
Key risks identified include:
- Stockpiling and black-marketing of fertilisers.
- Unauthorised use in industrial sectors such as resin and adhesives, plastics and foams, textiles and leather, and paper and pulp industries.
- Potential involvement of syndicates exploiting shortcomings in the DBT system, often in connivance with implementing agencies, leading to shortages and inflated prices.
Currently, each beneficiary is allowed to purchase up to 50 bags of subsidised fertiliser per month, a provision that the panel suggests may be contributing to these issues.
Recommendations for Systemic Improvements
The parliamentary panel has put forward several recommendations to address these challenges and ensure that subsidies reach intended farmers effectively.
Key recommendations include:
- Expedite the integration of the iFMS platform with the farmer's registry, incorporating critical data such as landholding details, cropping patterns, and soil health information.
- Broaden the Direct Cash Transfer (DCT) Scheme to select districts across different regions to better understand fertiliser purchase behaviours and identify constraints in the current DBT system.
- Implement necessary modifications to the DBT system to ensure benefits extend directly to both landowners and landless farmers who cultivate leased land, promoting inclusivity and fairness.
The committee noted the department's ongoing efforts to explore the use of the PM-KISAN database and integrate it with the digital platform of the fertilisers department. It stressed that all necessary measures should be taken to achieve early integration, thereby enhancing transparency and accountability in the subsidy distribution process.
By strengthening the linkage between Aadhaar authentication and a verified farmer registry, the panel aims to create a more resilient system that minimises diversion, supports genuine agricultural needs, and safeguards public resources from exploitation.
