Lok Sabha Question No. 1639 (UNSTARRED), answered on 2019-07-02
Subject: Fertilizer Subsidy to Farmers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Dharambir Singh

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1639+ TO BE ANSWERED ON 02.07.2019

## Fertilizer Subsidy to Farmers

## 1639+.SHRIDHARAMBIR SINGH:

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

- (a) the details of subsidies made available by the Government for various fertilizers during each of the last three years and the current year, State/Union Territorywise and fertilizer-wise;
- (c) whether the Government proposes to make available the subsidies pertaining to fertilizers directly in the accounts of farmers through Direct Benefit Transfer Scheme; and
- (b) whether poor and marginal farmers are not getting the benefits of subsidies provided for fertilizers and if so, the reaction of the Government thereto;
- (d) if so, the time by which final decision is likely to be taken by the Government in this regard?

## ANSWER

## MINISTER OF CHEMICALS AND FERTILIZERS

## (D V. SADANANDA GOWDA)

- (a) on various fertilizers during each of the last three and the current year 2019-20 as on 26.06.2019 is enclosed in Annexure-1. The State/UT-wise subsidy figures are not available as the subsidy is to fertilizers companies. years paid paid
- (b) Sir. Urea is being   provided to the farmers at a statutorily  notified Maximum Retail Price (MRP): The MRP of 45 kg bag of Urea is Rs. 242 per bag (exclusive of charges towards neam-coating and taxes as applicable) and the MRP of 50 kg of Urea is Rs. 268 per bag (exclusive of charges towards neam-coating and applicable). The difference between the delivered cost of Fertilizers at farm taxes as and net market realization by the urea units is given as subsidy to the Urea manufacturerllmporter by the Govt: of India. Accordingly, farmers are getting Urea at affordable MRP because of the subsidy provided by the Government: No, bag gate

As far as Phosphatic and Potassic fertilizers is concerned, Government of India is implementing Nutrient Based Subsidy (NBS) Scheme W.ef. 01.04.2010 for P&k fertilizers Under the said scheme, a fixed amount of subsidy decided on annual basis, is   provided on each grade & Potassic (P&K) fertilizers deperiding upon its Nutrient content: This subsidy is given by of India to the P&K fertilizer companies which are therefore able to provide P&k fertilizers to the farmers at a subsidized MRP which is lower than it would have been, if no subsidy had been given. Accordingly, any farmer who is procuring these fertilizers at MRP , is availing the benefit of subsidy:

- (c) & (d): Sir, under the fertilizer DBT system, 100% subsidy on various fertilizer grades is released to the fertilizer companies, instead of the buyers on the basis of actual sales made by the retailers to the beneficiaries. Sale of all subsidised fertilizers to farmerslbuyers is made through Point of Sale (PoS) devices installed at each retailer and the beneficiaries are identified through Aadhaar Card, Kisan Credit Card (KCC), Voter Identity Card etc. shop

## Annexure

Details of Fertilizers subsidy made available by the Government on various fertilizers during the last three (2016-17 to 2018-19) and current year 2019-20 as on 26.06.2019 years

(Rupees in crores)

| Year                       |   Indigenous Urea |   Imported Urea |   Indigenous Pek |   Compost City |   Imported Pek | Gross Subsidy   |
|----------------------------|-------------------|-----------------|------------------|----------------|----------------|-----------------|
| 2016-17                    |           40000   |         11256.6 |         11842.9  |           0.55 |        6999.99 | 70100.01        |
| 2017-18                    |           36973.7 |          9980   |         14337    |           7.26 |        7900    | 69197.96        |
| 2018-19                    |           32189.5 |         17155.4 |         14820.4  |          10    |        9260    |                 |
| 2019-20 (As on 26.06.2019) |           17940.4 |          1736.4 |          4718.98 |           7.33 |        4793.73 | 29196.82        |