Fertiliser sales drop sharply in border districts after ID-linked purchase system introduced

Government analysis shows a 37.56% reduction in fertiliser sales in certain border districts between kharif 2025 and 2026 after the Fertiliser for Farmers System linked purchases to AgriStack farmer IDs, land records and crop requirements. The drop varied from 17.35% in some Meghalaya districts to over 80% in parts of Tripura, prompting concerns about earlier diversion of subsidised urea to neighbouring countries such as Nepal, Bangladesh and Myanmar.

The subsidy bill could swell to roughly ₹3 trillion in FY27, well above the ₹1.7 trillion budget estimate. Under the new system, buyers are matched to their landholdings and crop plans before a transaction is booked, aiming to stop diversion at the source. The pilot, now active in about 268 districts across 30 states, integrates AgriStack with the Integrated Fertiliser Management System, which tracks production, imports, movement, stock and subsidy processing for over 140 million Aadhaar-linked buyers and 250,000 retailers. Officials note that the system has improved transparency for farmers, allowing advance booking and visibility of retailer stocks.