Lok Sabha Question No. 3281 (UNSTARRED), answered on 2021-12-17
Subject: Reforms in Fertilizer Sector
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Y. S. Avinash Reddy, Geetha Viswanath Vanga, Kotha Prabhakar  Reddy, Raghu Ramakrishna Raju Kanumuru

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

## LOK SABHA

UNSTARRED QUESTION NO. 3281 TO BE ANSWERED ON: 17.12.2021

## Reforms in Fertilizer Sector

3281:

SHRI Y.S: AVINASH REDDY:

SHRIMATI VANGA GEETHA VISWANATH:

SHRI KOTHA PRABHAKAR REDDY:

SHRI  KANUMURU RAGHU RAMA KRISHNA RAJU:

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

- (a) whether the Government is working on reforming the fertilizer sector; if the details thereof and if not; reasons therefor; SO,
- (b) whether the Government proposes to keep a check on the fertilizer subsidy bill; promote the efficient use of fertilizers, achieve the balanced usezof N, P and K and reduce water and air pollution caused by fertilizers like urea and if so, the details and the status thereof and if not; the reasons therefor; and rising
- (c) whether views of Stateslstakeholderslfarmers are taken into consideration and if the details thereof? SO ,

## ANSWER

## MINISTER OF HEALTH & FAMILY WELFARE AND CHEMICALS & FERTILIZERS (DR: MANSUKH MANDAVIYA)

(a): The   Government has introduced Direct Benefit Transfer  (DBT) system in Fertilizers w.e.f: October 2016 and the Pan-India Roll out has been completed by March, 2018. Under the fertilizer DBT  system, 100%   subsidy on various fertilizer grades is released to the fertilizer companies On the basis of actual sales made by the retailers to the beneficiaries. Sale of all subsidized fertilizers to farmerslbuyers is made through Point of Sale (PoS) devices installed at each retailer and the beneficiaries are identified through Aadhaar Card, KCC Voter Identity Card etc. Further; the Government incorporates new and innovative fertilizers from time to time in Fertilizer Control Order-1985 (FCO). Recently, Nano urea and bio-stimulants have been incorporated in FCO\_ shop

- (b): The Government of India (GOI) introduced New Urea Policy-2015 (NUP-2015) on 2015 with the objectives of maximizing indigenous urea production, promoting energy   efficiency in urea production and rationalizing   subsidy burden on the 25th May

Government for 25 existing gas based units: As per provisions of the NUP-2015, the of the all the urea units had been revised for the year 2015-16 (from energy norms 2017-18. Further, the units were categorized into 3 June 2015 onwards), 2016-17 and and each group was given target energy norm from 2018-2019. Due to energy groups of energy by the units have decreased resulting into overall efficiency, consumption saving in the subsidy outgo on the urea production. 7 st

Further, the GOl encourages balance use of fertilizer in conjunction with bio fertilizers on soil test based recommendation: The GOI has fertilisers and organic details of soil implemented Soil Health Card (SHC) scheme which not only fertility status but also recommends the crop wise dosage of nutrients to bez the GOI encourages the efficient use of fertilizers and have included neem Further , FCO. Neem coated urea has higher efficiency over plain urea. This urea in may help in reducing both air and water pollution: give applied. coated

- The Government has taken views of stakeholders/farmers during its third party (c): continuation of Nutrient Based Subsidy (NBS) scheme and Urea evaluation for the Scheme.-Likewise, the Govt: has included Potash-Derived from Molasses Subsidy NBS scheme and has consulted  stakeholders to formulate its (PDM) under the wherever possible; has been taken views of guidelines: Thus, States/Stakeholderlfarmers.