Lok Sabha Question No. 13 (UNSTARRED), answered on 2021-02-02
Subject: Fertilizer Subsidy
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Dibyendu Adhikari

## GOVERNMENT OF INDIA MINISTRY OF CEHMICALS & FERTILIZERS DEPARTMENT OF FERTILIZERS LOK SABHA

## UNSTARRED QUESTION NO. 13 TO BE ANSWERED ON: 02.02.2021

## Fertilizer Subsidy

## 13. SHRI DIBYENDU ADHIKARI:

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

- (a) whether it is a fact that in the Budget 2020-21, the subsidy on fertilizers has been reduced by Rs. 9,534 crore against the Budget 2019-20;
- (d) whether the subsidy has been reduced andlor  support   organic farming and if so, the reasons behind a mere allocation therein?
- if so, the reasons therefor; (6) whether it is also a fact that the Government has allotted a paltry amount of Rs: 12.5 crore to promote the use of organic and biological sources of nutrients; and

## ANSWER

## MINISTER OF CHEMICALS & FERTILIZER (SHRI D.V. SADANANDA GOWDA)

(a) & (b): Yes, Department of Fertilizers was allocated BE of Rs.83515.00 crore in the financial year 2019-20 against  the  projected demand of Rs\_ 100633.43 crore and Rs.73975.00 crore against the projected demand of Rs. 100349.50 crore for the financial year 2020-21. Funds allocation is detailed in Annexure A.

- (c) & (d): For the promotion of organic farming and use of organic & biological sources of nutrient, government is providing financial assistance to farmers for inputs (on farm and off farm) in the following flagship schemes:
- Paramparagat Krishi Vikas Yojana (PKVY): Assistance of Rs. 50,000 per hectarel 3 years is given, out of which Rs. 31,000 (62%) is provided to the farmers   directly through DBT for inputs  (bio-fertilizers, bio pesticides, vermin compost, botanical extracts\_ etc. including organicl biological sources of nutrients) production/ procurement;, post harvest management etc.
- Mission Organic Value Chain Development for North Eastern Region (MOVCDNER): Farmers are given assistance of Rs. 25000/ha/3 years for both on-farm and off-farm organic inputs, and seedsl plant material. Implemented in the States of Arunachal Pradesh; Assam\_ Manipur; Meghalaya, Mizoram; Nagaland, Sikkim and Tripura, from 2015-16 till now.

The details of funds allocated for the PKVY and MOVCDNER schemes allocated from 2015-16 till date is detailed in the Annexure B

The details of allocation during 2019-20 and 2020-21 are as follows=

|                                                                                                                           | BE 2019-20   | RE 2019-20   | BE 2020-21   |
|---------------------------------------------------------------------------------------------------------------------------|--------------|--------------|--------------|
| REVENUE SECTION                                                                                                           |              |              |              |
| 1 Sectt_Proper (MH 3451)                                                                                                  | 38.94        | 37.09        | 35.94        |
| Salary                                                                                                                    | 25.32        | 23.47        | 24.87        |
| Non-Salary                                                                                                                | 13.62        | 13.62        | 11,07        |
| 2. Nutrient Based Subsidy Policy (MH 2401)                                                                                | 26367.00     | 26368.85     | 23504.00     |
| (a) Payment for Indigenous P&k Fertilizers                                                                                | 15906.00     | 15906.00     | 14179.00     |
| (b). Payment for Imported P&k Fertilizers                                                                                 | 10429.00     | 10429.00     | 9296.00      |
| (c) Payment for City Compost_                                                                                             | 32.00        | 33.85        | 29.00        |
| 3. Urea Subsidy_(MH 2852)                                                                                                 | 57109.00     | 57109.00     | 50435.00     |
|                                                                                                                           | 43050.00     | 43050.00     | 38375.00     |
| (b)Payment for_Urea Freight Subsidy                                                                                       | 0.00         | 0.00         | 0.00         |
| (c). Payment for Import of_Urea                                                                                           |              |              |              |
| Gross                                                                                                                     | 14049.00     | 14049.00     | 12050.00     |
| Recovery                                                                                                                  | 3480.00      | 3480.00      | 2630.00      |
| Net                                                                                                                       | 10569.00     | 10569.00     | 9420.00      |
| (d) Direct Benefit Transfer (DBT) in fertilizers_Subsidy                                                                  |              |              |              |
| Office_Expenses                                                                                                           | 1.00         | 1.00         | 1,00         |
| Professional Expenses                                                                                                     | 9.00         | 9.00         | 9.00         |
| Waiver of Loan and interest in rlo Fertilizer PSUs write offlloses                                                        |              |              |              |
| Total Subsidy (Gross)                                                                                                     | 83476.00     | 83477.85     | 73939.00     |
|                                                                                                                           | 79996.00     |              | 71309.00     |
| 4. Assistance to PSUs                                                                                                     | 0.01         | 0.01         | 0.01         |
| (a) Write off of loans, Interest and penal interest on GOI loan outstanding HFCL, FCI,MFL,PDIL and FACT (MH 3475) against | 0.01         | 0.01         | 0.01         |
| Total (REVENUE SECTION) Gross                                                                                             |              | 83514.95     | 73974.95     |
| Net                                                                                                                       | 80034.95     | 80034.95     | 71344.95     |

## Annexure-A

| B   | CAPITAL SECTION                                            |          |          |          |
|-----|------------------------------------------------------------|----------|----------|----------|
|     | 5.Loans for Fertilizers Industries                         |     0.05 |     0.05 |     0.05 |
|     | (a): Hindustan Fertilizers Corporation Ltd_ HFCL-(MH 6855  |     0.01 |     0.01 |     0.01 |
|     | (b) Fertilizers Corporation of India Ltd. FCIL- (MH 6855)  |     0.01 |     0.01 |     0.01 |
|     | (c) . Pyrites , Phosphates & Chemicals Ltd.-PPCL-(MH 6855) |     0.01 |     0.01 |     0.01 |
|     | (d). Brahmputra Valley Fer: Ltd. BVFCL- (MH 6855) Corp.    |     0.01 |     0.01 |     0.01 |
|     | Hindustan Urvarak and Rasayan Ltd. HURL (MH 6855)          |     0.01 |     0.01 |     0.01 |
|     | TOTAL (CAPITAL SECTION) Gross                              |     0.05 |     0.05 |     0.05 |
|     | Net                                                        |     0.05 |     0.05 |     0.05 |
|     | TOTAL" DEPARTMENT OF FERTILIZERS (Gross]                   | 83515    | 83515    | 73975    |

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## Annexure-B

- 1 Paramparagat Krishi Vikas Yojana (PKVY) The fund allocated from 2015-16 till date is as

Physical and Financial Progress of the PKVY scheme:

- Phase |: Total amount allocated for the scheme during 2015-16 to 2017-18 is Rs. 947 crore and fund released Rs\_ 727.20 During this period 237820 hectares of land has been converted into organic farming land and 5,94,550 farmers have been benefited in 11891 clusters.
- Phase Il: Total amount allocated for the scheme during 2018-19 to 2020-21 is Rs. 1185 crore and fund released Rs. 551.40 crore\_ Total area covered is 3.81 lakh ha: and 9.52 lakh farmers have been mobilized in 19043 clusters\_
- Under PKVY total 6.19 lakh ha area covered and 15.47 lakh farmers have been benefitted in 30934 clusters in both phase\_
2. Physical and Financial Progress of the Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) scheme
- Phase I: Total amount allocated for the scheme during 2015-16 to 2017-18 is Rs. 325 crore and fund released Rs. 165.96 crore.
- Phase Il: Total amount allocated for the scheme during 2018-19 to 2020-21 is Rs\_ 495 crore and fund released is Rs. 367.13 crore\_
- As on date 169 Farmer Producer  Companies (FPCs) have been formed including 83096 farmers and 79445 ha. area.
- IV For next three year i.e. 2020-21 to 2022-23 target is to cover 1,00,000 ha: area 1,00,000 farmers and to form 200 FPCsIFPOs\_