Lok Sabha Question No. 1017 (UNSTARRED), answered on 2018-07-24
Subject: Urea Subsidy
Ministry: CHEMICALS AND FERTILIZERS
Asked by: SUNIL KUMAR SINGH

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

## UNSTARRED QUESTION NO. 1017+ TO BE ANSWERED ON: 24.07.2018 Urea Subsidy

## 1017+   SHRI SUNIL KUMAR SINGH:

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

- (a) the  details  of  total  amount  of  subsidy  being  given  on  Urea  to  the  farmers during the last three years;
- (b) the frequency of urea subsidy being given to the farmers in a year;
- (c) whether  any  ceiling  has  been  fixed  in  this  regard  and  if  so,  the  details thereof;
- (d) the manner in which urea subsidy is being given to farmers presently;
- (e) whether the Government proposes to issue smart cards to the farmers for purchasing fertilizers and if so, the details thereof;
- (f) whether the farmers will get urea subsidy only twice a year through smart card and if so, the details and the reasons thereof; and
- (g) the details of the annual demand of urea in the State of Jharkhand?

## ANSWER

MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  OF THE  MINISTRY  OF  PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

(RAO INDERJIT SINGH)

(a)  to  (d): The  Department  of  Fertilizers  provides  subsidy  to  the  Manufacturers/ Importers of fertilizers for providing fertilizers to farmers at subsidized rates. Urea is being provided to the farmers at a statutorily notified Maximum Retail Price (MRP). The difference between the delivered cost of fertilizers at farm gate and net market realization by the urea units is given as subsidy to the Urea Manufacturers/Importers by the Government of India. The details of Urea Subsidy paid to the companies during the last three years may be seen at Annexure I.

(e) & (f): The Government has introduced Kisan Credit Card (KCC) scheme which enables farmers to purchase agricultural inputs such as seeds, fertilizers, pesticides  etc.  and  draw  cash  to  meet  their  agricultural  and  consumption  needs. The KCC scheme has since been simplified. It has the provision of ATM enabled Debit  Card  with  inter-alia  facilities  of  one-time  documentation  and  built-in  cost escalation in the limit etc. With a view to facilitate financial transactions by farmers on digital platform, Government has decided to convert the KCCs to RuPay KCCs (RKCCs)  in  a  time  bound  manner.  The  conversion  of  operative/live  KCCs  into RuPay/ATM-enabled KCCs will enable easy and hassle free availability of credit to farmers  and  is  likely  to  reduce  the  interest  liability  as  it  would  encourage  need based drawl of credit.

(g): Department  of  Agriculture  Cooperation  &  Farmers  Welfare  in  consultation with States/UTs assesses the requirement (demand) of all fertilizers before the start of  each  season  separately  (Kharif  and  Rabi  Season).  For  the  year  2017-18,  the projected demand of Urea in the State of Jharkhand was 2.40 Lakh MT. This year i.e.  2018-19,  for  the  Kharif  season  (from  April  2018  to  September  2018),  the projected demand of Urea is 1.70 Lakh MT.

-: 2 : Annexure I

| Statement showing sector wise/unit wise   | Statement showing sector wise/unit wise   | Statement showing sector wise/unit wise   | Statement showing sector wise/unit wise   | Statement showing sector wise/unit wise   |
|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|
| S. No.                                    | Unit                                      | Subsidy paid/ (recovered)                 | Subsidy paid/ (recovered)                 | Subsidy paid/ (recovered)                 |
|                                           |                                           | 2015-16                                   | 2016-17                                   | 2017-18                                   |
| (A)                                       | Public Sector                             |                                           |                                           |                                           |
| 1                                         | RCF-ThaI                                  | 2595.28                                   | 3328.60                                   | 3343.98                                   |
| 2                                         | RCF-Trombay                               | 613.73                                    | 825.57                                    | 792.29                                    |
| 3                                         | MFL                                       | 933.28                                    | 1331.44                                   | 852.13                                    |
| 4                                         | NFL-BHATINDA                              | 1763.11                                   | 1559.39                                   | 1017.35                                   |
| s                                         | NFL-PANIPAT                               | 1594.57                                   | 1425.68                                   | 1292.80                                   |
| 6                                         | NFL-VIJAIPUR-I                            | 1098.84                                   | 1316.72                                   | 1426.96                                   |
| 7                                         | NFL-VIJAIPUR-II                           | 1364.55                                   | 1413.34                                   | 1606.77                                   |
| 8                                         | NFL-NANGAL                                | 1661.96                                   | 1377.64                                   | 1277.16                                   |
| 9                                         | BVFCL-Namrup-III                          | 268.2                                     | 284.06                                    | 342.52                                    |
| 10                                        | BVFCL-Namrup-II                           | 101.48                                    | 94.95                                     | 88.84                                     |
| 11                                        | GSFC (State Govt.)                        | 311.13                                    | 664.18                                    | 551.98                                    |
| 12                                        | GNFC (State Govt.)                        | 1558.47                                   | 1524.98                                   | 1224.54                                   |
|                                           | TOTAL                                     | 13864.60                                  | 15146.55                                  | 13817.32                                  |
| (B)                                       | Cooperative Sector                        |                                           |                                           |                                           |
| 1                                         | KRIBHCO                                   | 2935.68                                   | 3151.23                                   | 2828.19                                   |
| 2                                         | IFFCO-PHULPUR-II                          | 1120.92                                   | 1104.52                                   | 1680.65                                   |
| 3                                         | IFFCO-PHULPUR-I                           | 1951.45                                   | 1546.47                                   | 1210.58                                   |
| 4                                         | IFFCO-KALOL                               | 869.92                                    | 906.81                                    | 862.66                                    |
| 5                                         | IFFCO-AONLA-I                             | 1547.07                                   | 1411.90                                   | 1139.64                                   |
| 6                                         | IFFCO-AONLA-II                            | 1591.22                                   | 1330.83                                   | 1158.72                                   |
|                                           | TOTAL                                     | 10016.26                                  | 9451.76                                   | 8880.44                                   |
| ( C)                                      | Private Sector                            |                                           |                                           |                                           |
| 1                                         | NFCL-I                                    | 386.32                                    | 1015.53                                   | 1101.03                                   |
| 2                                         | NFCL-II                                   | 630.28                                    | 1043.10                                   | 1000.82                                   |
| 3                                         | CFCL-I                                    | 1375.82                                   | 1506.73                                   | 1294.84                                   |
| 4                                         | CFCL-II                                   | 1620.19                                   | 1606.37                                   | 1519.35                                   |
| 5                                         | TATA CHEMICALS                            | 1619.97                                   | 1562.16                                   | 1530.45                                   |
| 6                                         | ZACL                                      | 1439.63                                   | 832.92                                    | 744.11                                    |
| 7                                         | SFC                                       | 536.34                                    | 682.34                                    | 615.87                                    |
| 8                                         | INDOCULF/GRASIM                           | 1623.85                                   | 1542.60                                   | 1349.51                                   |
| 9                                         | SPIC                                      | 1137.22                                   | 1700.72                                   | 1496.23                                   |
| 10                                        | KSFL/KFL                                  | 1433.84                                   | 1334.2J                                   | 1151.07                                   |
| 11                                        | MCFL                                      | 760.19                                    | 1083.82                                   | 725.20                                    |
| 12                                        | KFCL                                      | 1755.49                                   | 1491.17                                   | 1747.46                                   |
|                                           | TOTAL                                     | 14319.14                                  | 15401.69                                  | 14275.94                                  |
|                                           | GRAND TOTAL                               | 38200.00                                  | 40000.00                                  | 36973.70                                  |

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