International Journal of Scientific Research and Engineering Development

Fertilizers are a lifeline of India’s agriculture — subsidised to keep farm input costs affordable and maintain food security. However, repeated episodes of diversion, counterfeit products, and illegal export, tax evasion, and procurement irregularities— broadly termed “fertilizer scams” — have imposed heavy economic and welfare costs on the Government of India and Indian farmers. This paper examines the nature and scale of fertilizer-related frauds, quantifies fiscal exposures where possible, analyses transmission channels (supply-chain weaknesses, subsidy design, private/public intersection, and enforcement gaps), and assesses consequences for agricultural productivity and farmer incomes. Using a mixed-methods approach (policy-document analysis, case-study review of high-profile investigations, budget data and secondary literature), the study provides a critical evaluation of institutional shortcomings and proposes an integrated set of reforms: subsidy re-design, end-to-end supply-chain digitisation, stricter licensing and audit norms, better laboratory and market surveillance, stronger criminal and financial investigation linkages, and farmer-facing grievance and verification mechanisms. The paper concludes with prioritized, practicable policy recommendations and an implementation roadmap aimed at significantly reducing leakages and protecting both fiscal integrity and farmer welfare.