Lok Sabha Question No. 1872 (UNSTARRED), answered on 2020-03-03
Subject: Fertilizer Consumption
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Lavu Sri Krishna Devarayalu

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1872 TO BE ANSWERED ON: 03.03.2020

## Fertilizer Consumption

## 1872. SHRI LAVU SRI KRISHNA DEVARAYALU:

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

- (a) whether it is true that fertilizer consumption has been reducing since 2011 and if so, the details thereof;
- (b) whether the fall in consumption may be attributed to fertilizer prices; and rising
- (c) whether the Government is aware of a fertilizer black market and if s0, the taken to curb it? steps

## ANSWER

## MINISTER FOR CHEMICALS AND FERTILIZERS

## (SHRI D.V. SADANANDA GOWDA)

(a) & (b): Sir. There is no fixed trend in fertilizer consumption as evident from the figures annexed at AnnexureA'. Also, the pattern of consumption of fertilizers in the country cannot be only attributed to the fertilizer prices.

Urea is being provided to the farmers at a statutorily notified Maximum Retail Price (MRP). The MRP of 45 kg of urea is Rs.242 per (exclusive of charges towards neem coating and taxes as applicable) and the MRP of 50 kg of urea is Rs.268 bag (exclusive of   charges towards neem coating and taxes as applicable) The difference between the delivered cost of urea at farm and net market realization by the urea units is given as subsidy to the urea manufacturerlimporter by the Government of India. Accordingly, all farmers are supplied urea at the subsidized rates. bag bag bag per gate being

Also, Government of India has implemented Nutrient Based Subsidy Policy 1.4.2010 for Phosphatic and Potassic (P&K) fertilizers. Under the policy, a fixed amount of subsidy, decided on annual basis, is provided on subsidized P&k fertilizers depending on their nutrient content with an objective to make available these fertilizers to farmers at a reduced price. Under this policy, MRP is fixed by fertilizer companies as per market dynamics at reasonable level. Average MRP of P&K fertilizers from the year 2010-11 to 2018-19 are at

(c): Government of India has declared fertilizer as an essential commodity under the Essential Commodities Act; 1955 and notified Fertilizer Control Order; 1985 and (Movement Control) Order , 1973\_ State Governments have been adequately empowered to ensure selling of fertilizers at MRP besides stopping black marketinglsmuggling of fertilizers. State Governments are empowered to conduct search, make seizures and take punitive action   against any person   violating provisions of FCO, 1985 and Essential Commodities Act; 1955.

Strict instructions have been issued to all State Governments for the effective monitoring of the fertilizer distribution and regular steps are being taken by the State Government to curb black-marketing of fertilizers. In order to check black-marketing, special raids are also organised in all districts of the State during Kharif and Rabi season. To maintain the availability of fertilizers in all parts of State, the supply monitoring are carried out by the senior officers of the Government at State and district level so that artificial scarcity cannot be created and reduce the chances of black marketing:

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