Lok Sabha Question No. 87 (STARRED), answered on 2016-11-22
Subject: New Fertilizer Policy
Ministry: CHEMICALS AND FERTILIZERS
Asked by: RAVINDRA VISHWANATH GAIKWAD

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF FERTILIZERS

## LOK SABHA

STARRED QUESTION NO.* 87+ TO BE ANSWERED ON 22.11.2016

## New Fertilizer Policy

## *87+ PROF. RAVINDRA VISHWANATH GAIKWAD

Will the Minister of CHEMICALS & FERTILIZERS be pleased to state:

- (a) whether incidents of black-marketing of fertilizers and manure are taking place on a large scale in the country;
- (b) if  so,  the  details  of  such  cases  reported  during  the  last  three  years  and  the current year and the action taken by the Government in this regard;
- (c) whether the prices of fertilizers are proposed to be reduced and if so, the   details thereof and the reasons therefor; and;
- (d) whether the Government has formulated any new fertilizer policy in the interest of the farmers in the country and if so, the details thereof?

## ANSWER

MINISTER FOR CHEMICALS & FERTILIZERS AND PARLIAMENTARY AFFAIRS (SHRI ANANTH KUMAR)

*(a) to (d):    A statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF THE LOK SABHA STARRED  QUESTION  NO.  87*  TO  BE  ANSWERED  ON  22.11.2016  REGARDING NEW FERTILIZER POLICY.

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- (a) & (b):   No, Madam.  There is no report of black-marketing of fertilizers and manure from any part of  the  country  during  the  current  year.    However,  in  the  year  2013-14, 2014-15 and 2015-16, number of black-marketing cases reported were 118, 348 and 8 respectively.It  is  important  to mention here that Government has declared fertilizer as an  essential  commodity  under  the  Essential  Commodities  Act,  1955  and  notified Fertilizer Control Order, 1985 and Fertilizer (Movement Control) Order, 1973.  The State Governments have been empowered to take appropriate action to curb black-marketing of fertilizers and initiate action against the persons who  violate these orders. Department  of  Fertilizers  has,  from  time  to  time,  written  to  the  Chief  Secretaries  of various  States  to  activate  the  enforcement  agencies  under  their  jurisdiction  to  take appropriate action to curb black-marketing.
- (c):    With the fall in cost of input / final product of P&K fertilizers, the Department of Fertilizers, Government of India intervened and held meetings with fertilizers companies and directed them to pass on the benefit to the farmers.  The fertilizer companies in the month of June, 2016, for the first time in last fifteen years reduced the Maximum Retail Price (MRP) on 50 Kg bags of MOP, DAP & NPK by Rs. 250/-, Rs. 125/- and Rs. 50/respectively.  Thus, a total benefit of about Rs. 4500 crores was passed to the farmers by this measure of Government of India.

Government  of India is implementing Nutrient Based  Subsidy Policy for Phosphatic  and  Potassic  (P&K)  fertilizers  w.e.f.  1.4.2010. Under  the  policy,  a  fixed amount of subsidy, decided on annual basis and from 2016-17 onwards reviewed after six  months,  is  provided  on  subsidised  P&K  fertilizers  depending  on  their  nutrient content. The NBS rates for the year 2016-17 have already been announced. Under this policy, MRP is fixed by fertilizer companies as per market dynamics at reasonable level.

- (d):   The Government has notified New Urea Policy (NUP) -2015 on 25 th May, 2015 for existing  25  gas  based  urea  units  with  the  objectives  of  maximizing  indigenous  urea production;  promoting  energy  efficiency  in  urea  production;  and  rationalizing  subsidy burden on the Government.

The policy has led to additional production of about 20LMT from the existing plants. The total production of urea during the year 2015-16 was 245 LMT approximately i.e. the highest ever urea production in the country. Compost. Compost from City garbage would not only provide carbon

On  10.02.2016,  the  Government  has  notified  a  Policy  on  Promotion  of  City and primary/secondary nutrients to soil but also help in keeping the City clean and support SWACHH BHARAT MISSION of the Government of  India.  Under  the  Policy,  Market Development Assistance  of  Rs.  1500/MT  is  provided  to  Marketer  on  sale  of  the  City Compost.  Market  Development  Assistance  would  lower  MRP  of  City  Compost  for farmers.  Use  of  City  Compost  in  conjunction  with  chemical  Fertilizers  would  result  in higher yield.

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