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Govt may use digital farmer IDs to rationalise urea sales

Business Standard

|

January 23, 2026

Move could be another attempt to rein in burgeoning fertiliser subsidy

- DEEPAK PATEL & SANJEEB MUKHERJEE

With distribution of unique farmer identity documents (IDs) touching a critical mass, the government is working on a plan to integrate the sale of urea through the Agri Stack platform in a phased manner.

Sources said the move, which is still being contemplated as a pilot, could be another attempt to rationalise the burgeoning fertiliser subsidy that has threatened to cross %1.91 trillion in 2025-26 (FY26) as against the Budget Estimate of %1.68 trillion.

The overshooting of Budget Estimates is mainly due to record urea consumption in FY26, which has already touched 31.15 million tonnes (mt) between April and December 2025, almost 4 per cent more than the corresponding period of 2024.

Officials said the Union agriculture ministry, during a meeting with state government representatives last month, floated the idea of integrating the sale of urea with Agri Stack in a phased manner, beginning with pilot projects in select districts.

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