Lok Sabha Question No. 2130 (UNSTARRED), answered on 2022-07-29
Subject: Decline in Fertilizer Subsidy
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Sisir Kumar Adhikari, Lavu Sri Krishna Devarayalu, Reddeppa Nallakonda Gari

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

## LOK SABHA

UNSTARRED QUESTION NO. 2130 TO BE ANSWERED ON: 29.07.2022

## Decline in Fertilizer Subsidy

2130: SHRI SISIR KUMAR ADHIKARI: SHRI LAVU SRI KRISHNA DEVARAYALU: SHRI N. REDDEPPA:

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

- (a) whether a 10 percent decline in the sales of fertilizers was reported in 2021, if s0, the details thereof;
- (b) whether a 24.9 percent decline in budget allocations toward the fertilizer subsidy under BE 2023 as against RE 2022 has impacted the accessibility of fertilizers to the farmers and if so, the details thereof;
- (c) the details of the projected demand and domestic   production of fertilizers  in the country for 2022-23, State/UT-wise;
- (d) whether the Government also anticipates a shortage of urea, as predicted by some experts and if the measures being taken to resolve the issue thereof; and SO,
- (e) the measures takenlproposed to be taken to contain the   rising   costs of raw materials for non-urea fertilizers?

## ANSWER

## MINISTER OF STATE FOR CHEMICALS AND FERTILIZERS (SHRI BHAGWANTH KHUBA)

- (a): No sir. Sales of fertilizer for the FY 2020-21 & 2021-22 is enclosed as Annexure-A
- (b): No sir. Under the DBT in Fertilizers system, 100% subsidy on various fertilizer grades is released to the fertilizer companies on actual sales to the beneficiaries through PoS devices installed at each retail shop on No denial Basis.
- (c): The details of requirement of fertilizer (during the ongoing Kharif Season 2022) as assessed by Department of Agriculture & Farmers Welfare (DA&FW) in consultation with the State Government is annexed at Annexure-B. The demand of fertilizer for Rabi 2022-23 season has not been assessed The projected domestic production of fertilizer in the country for FY 2022-23 is as follows: yet:

| YEAR    |   Urea |   DAP |   Complex |
|---------|--------|-------|-----------|
| 2022-23 |    317 | 45.08 |     97.35 |

Figures: In LMT

- (d): No Sir. The availability of fertilizers have remained comfortable the Kharif 2022 season: Further; following steps are taken by the Government ongoing every season to meet the adequate and timely requirement of fertilizers in all the States. during
- L Before the commencement of each cropping season, Department of the state-wise & month-wise requirement of fertilizers. assesses
- iii. The movement of all major subsidized fertilizers is monitored throughout the country by an on-line web based monitoring system called integrated Fertilizer Monitoring System (iFMS);
- ii\_ On the basis of requirement projected, Department of Fertilizers allocates sufficientl adequate quantities of   fertilizers to States by monthly supply plan and continuously monitors the availability: issuing
- iv. The State Governments are regularly advised to coordinate with manufacturers and importers of   fertilizers for streamlining the placement of indents for railway rakes through their state institutional agencies like Markfed etc,
- vi\_ The gap between demand (requirement) and production for Urea & other fertilizer is met through imports. The import for the season is also finalised well in advance to ensure timely availability.
- V Regular Weekly Video Conference is conducted jointly by DAFW and DoF with State Agriculture Officials and corrective actions are taken to dispatch fertilizer as indicated by the State Governments.
- (e): In wake of the increasing prices of the raw materials of non-urea   fertilizers , Government has been encouraging Indian Companies to establish Joint Ventures abroad in countries which are rich in fertilizer resources for   production facilities with back arrangements and to enter into term agreement for supply of fertilizers at reasonable prices. buy long

| ANNEXURE:A                            | ANNEXURE:A                            | ANNEXURE:A                            | ANNEXURE:A                            | ANNEXURE:A                            |
|---------------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|
| ALL INDIA FERTILIZER SALES COMPARISON | ALL INDIA FERTILIZER SALES COMPARISON | ALL INDIA FERTILIZER SALES COMPARISON | ALL INDIA FERTILIZER SALES COMPARISON | ALL INDIA FERTILIZER SALES COMPARISON |
|                                       | PRODUCT GROUP                         | FY 2021-22                            |                                       | <FIG IN LMT>                          |
| 1                                     | UREA                                  | 341.73                                | 350.51                                | -2.50                                 |
| 2                                     | DAP                                   | 92.64                                 | 119.18                                | -22.27                                |
| 3                                     | MOP                                   | 23.93                                 |                                       | -30.27                                |
| 4                                     | NPKS                                  | 121.37                                | 125.82                                | -3.54                                 |
| GRAND TOTAL                           | GRAND TOTAL                           | 579.67                                | 629.83                                | -7.96                                 |

| ANNEXURE:B                             | ANNEXURE:B                             | ANNEXURE:B                             |
|----------------------------------------|----------------------------------------|----------------------------------------|
| FERTILIZER REQUIREMENT FOR KHARIF 2022 | FERTILIZER REQUIREMENT FOR KHARIF 2022 | FERTILIZER REQUIREMENT FOR KHARIF 2022 |
| S.NO                                   | PRODUCT GROUP                          | REQUIREMENT                            |
| 1                                      | UREA                                   | 179.01                                 |
| 2                                      | DAP                                    | 58.82                                  |
| 3                                      | MOP                                    | 19.82                                  |
| 4                                      | NPKS                                   | 63.72                                  |

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