Lok Sabha Question No. 516 (UNSTARRED), answered on 2019-06-25
Subject: Price of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Gitaben Vajesingbhai Rathva

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

## LOK SABHA

## UNSTARRED QUESTION NO. 516 TO BE ANSWERED ON : 25.06.2019

## PRICE OF FERTILIZERS

## 516. SHRIMATI RATHVA GITABEN VAJESINGBHAI :

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

- (a) whether the prices of fertilizers have been increased recently;
- (b) if so, the details thereof during each of the last three years and the current year and ihe reasons therefor, fertilizer-wise;
- (c) the existing mechanism to monitor the volatility in prices of fertilizers in the country;
- (d) whether fertilizers are made available to farmers in sufficient quantity during the sowing seasons, if so, the details thereof and if not; the reasons therefor; and
- (e) the   steps takenlproposed to be taken by the Government for   providing adequate quantity of fertilizers at affordable to farmers? prices

## ANSWER

## MINISTER OF CHEMICALS & FERTILIZERS

## (SHRI D V SADANAND GOWDA)

(a): No Sir . Prices of Phosphatic & Potassic   (P&K) fertilizers have not been increased. the Government has  implemented Nutrient Based Subsidy Policy w.e.f. 1.4.2010. Under the policy, a fixed amount of subsidy, decided on annual basis, is provided on subsidised P&K fertilizers depending on their nutrient content: Under this MRP is fixed by  fertilizer  companies as per  market dynamics at reasonable level.

Whereas in case of Urea, w.e.f. 01.11.2012, MRP of 50 kg of Urea had been fixed at Rs. 268 per (exclusive of charges towards neem coating and taxes as bag bag

applicable) . Subsequently, vide notification dated 04.09.2017 , Government of India had decided to introduce 45 kag of Urea in place of existing 50 kg The MRP of 45 kg of urea is Rs. 242 per (exclusive of charges towards neem coating and taxes as applicable): bag: bag bag bag

- (b): Question does not arise

(c) & (e): Urea is being provided to the farmers at a statutorily notified Maximum Retail Price (MRP). Hence, question of volatility of price does not arise. Whereas, in P&K fertilizers, reasonableness of MRP of P&k fertilizers fixed  by the fertilizer companies is examined by the Department of Fertilizers under the NBS Scheme. It has been stipulated in the provisions that in cases, where after scrutiny, unreasonableness of MRP is established or where there is no coirelation between the cost of production or acquisition and the MRP printed on the bags, the subsidy would be restricted or denied even if the product is otherwise eligible for subsidy under NBS Scheme. In proven case of abuse of subsidy mechanism, the Department of Fertilizers, on the recommendation of Inter-Ministerial Committee may exclude any gradelgrades of fertilizers of a particular company or the fertilizer company itself from the NBS Scheme.

With regards to availability of sufficient quantity of fertilizers during the sowing seasons, following steps have been taken by Government:

Before the commencement of the cropping season, Department of Agriculture, Cooperation and Farmers Welfare   (DAC&FW) , in consultation with all the State Governments , assesses the requirement of fertilizers. After assessment of requirement; DAC&FW projects month-wise requirement of fertilizers.

On the basis of month-wise & state-wise   projection given by DAC&FW Department of Fertilizers allocates   sufficient adequate quantities of fertilizers to States by issuing monthly  supply plan and continuously monitors the  availability through following system:

- The movement of all major subsidized fertilizers is being monitored throughout the country by an based  monitoring  system called   integrated Fertilizer Monitoring System (FMS);

- The State Governments are regularly advised to coordinate with manufacturers and importers fertilizers for   streamlining the supplies through   timely placement of indents for railway rakes through their state institutional agencies like Markfed etc.
- (iii) Regular   Weekly Video Conference is conducted   jointly by Department of Agriculture & Cooperation and Farmers Welfare (DAC&FW), Department of Fertilizers (DoF), and Ministry of Railways with State Agriculture Officials and corrective actions are taken to dispatch fertilizer as indicated by the State Governments
- (iv) The gap between demand (requirement) and   production is met   through imports: The import for the season is also finalized well in advance to ensure timely availability.

Thus, with the steps as indicated above, Department of Fertilizers ensures availability of fertilizers at the State level and the distribution to the farmers within the State is the responsibility of the respective State Government. Further; Governments have been adequately   empowered to ensure selling of fertilizers at MRPI affordable prices.

- (d): The details of requirement; availability and sales of fertilizers during the current Kharif 2019 (April to June 2019 (upto 18.06.2019)) are given in the table below:

|                          | Projected         |       |   <Figures in LMT> Sales |
|--------------------------|-------------------|-------|--------------------------|
| Urea                     | Requirement 56.67 | 60.82 |                    46.72 |
| Pek (DAP, MOP & Complex) | 44.55             | 71.22 |                    27.38 |

Source: iFMS.

It can be seen from the table above that the availability of fertilizers has been more than the sales.