Lok Sabha Question No. 1309 (UNSTARRED), answered on 2021-07-27
Subject: Impact of Rising Price of Petrol/Diesel on Agriculture Sector
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Anto  Antony

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK SABHA

## UNSTARRED QUESTION NO. 1309

TO BE ANSWERED ON THE 27 TH  JULY, 2021

## IMPACT OF RISING PRICE OF PETROL/DIESEL ON AGRICULTURE SECTOR

1309. SHRI  ANTO ANTONY.:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether the Government has noticed that the rising price of petrol and diesel has badly affected the agriculture sector in the country;
- (b) if so, the steps taken by the Government to help the farmers in the country;
- (c) whether the Government has the statistics regarding the price of major fertilizers and pesticides in the country;
- (d) if  so, the details of the price of major fertilizers and pesticides used by the farmers in the country during the last five years, year-wise;
- (e)     whether the Government has noticed that the price of major fertilizers and pesticides have gone up sharply; and
- (f)      if so, the steps taken by the Government, if any, to arrest the price rise of fertilizers and pesticides?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष और कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

- (a) & (b): Cost of diesel incurred in producing a crop is already included while estimating cost of cultivation/production and hence, is included in fixing Minimum Support prices (MSPs). The estimates of cost of cultivation, which is an important input for forming the recommendation  of  MSP,  are  made  available  to  Commission  through  the  'Comprehensive scheme  for  Studying  the  Cost  of  Cultivation  of  Principal  Crops  in  India',  operated  by Directorate  of  economics  and  Statistics,  Department  of  Agriculture  and  Farmers  Welfare, Ministry of Agriculture and Farmers Welfare, Government of India. These estimates take into account real factors of production and include all actual expenses in cash and kind incurred in production of a crop by the farmer.

The  Ministry  of  New  and  Renewable  Energy  (MNRE)  is  implementing  Pradhan Mantri Kisan Urja Surakhsha evam Uthaan Mahabhiyaan (PM-KUSUM Scheme), which, inter alia, provides for installation of 20 lakh standalone solar water pumps for replacement of existing diesel Agriculture pumps /irrigation systems in off-grid areas, where grid supply is not available. MNRE is also implementing a Central Sector Scheme, the New National Biogas  and  Organic  Manure  Programme  (NNBOMP) for  setting up  small  biogas  plants, based on cattle dung and other mixed wastes for water pumping and meeting small farm power needs. In  both  the  Schemes,  central  financial  assistance  is  provided,  as  per  the Scheme guidelines.

(c) & (d):      There is no mechanism to regulate the pricing of pesticides in the Insecticides Act, 1968 and Insecticides Rules, 1971. Pricing of pesticides is market driven and to make available  pesticides  at  reasonable prices,  the  Registration  Committee  grants  registration certificate  for  generic  pesticides  expeditiously.  Availability  of  more  options  to  farmers ensures  healthy  competition  in  the  market  thereby  having  the  effect  of  stabilizing  the prices. Pesticides companies like any other companies are regulated under the provisions of the Companies Act, 2013

The price of urea during last five years is constant. In 2012, the price of urea was fixed at Rs. 5360/- per Metric Tonne which was subsequently notified per 45 kg bag at Rs. 242/- . The details of the Average MRP in Rs./MT of P&K fertilizer fixed by the fertilizer companies under Nutrient Based Subsidy regime is enclosed as Annexure I.

(e) & (f):     There has been increase in the international prices of raw materials of P&K fertilizers  from  last  few  months.  Considering  the  consequences  of  increase  in  the international  prices  of  raw  materials  for  fertilizers  and  finished  fertilizers  on  the  farming community, the Govt. of India has notified new NBS rates for P&K fertilizers on 20.05.2021 wherein,  the  subsidy  on  P&K  fertilizers  has  been  increased  to  make  available  DAP  and other P&K fertilizers at affordable prices to farmers.

The subsidy of DAP fertilizer has been increased from Rs. 500 per bag to Ra. 1200/per  bag  which  is  an  increase of  around  140%. Thus despite  the rise  in  the  international prices  of  DAP,  Centre  Government  decided to  bear all  the  burden  of  the  price  hike  and continue selling DAP to farmers at the older price of Rs. 1200 per bag.

|                           |                           | Average MRP in Rs/MT of P&K fertilizers fixed by the fertilizer companies under the Nutrient Based Subsidy regime   | Average MRP in Rs/MT of P&K fertilizers fixed by the fertilizer companies under the Nutrient Based Subsidy regime   | Average MRP in Rs/MT of P&K fertilizers fixed by the fertilizer companies under the Nutrient Based Subsidy regime   | Average MRP in Rs/MT of P&K fertilizers fixed by the fertilizer companies under the Nutrient Based Subsidy regime   |          |
|---------------------------|---------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|----------|
| Sl. No                    | Grades of Fertilizers     |                                                                                                                     |                                                                                                                     |                                                                                                                     |                                                                                                                     |          |
|                           |                           | 2016-17                                                                                                             | 2017-18                                                                                                             | 2018-19                                                                                                             | 2019-20                                                                                                             | 2020-21  |
| 1                         | DAP : 18-46-0-0           | 23213.26                                                                                                            | 22099.07                                                                                                            | 26943.79                                                                                                            | 26383.06                                                                                                            | 25082.44 |
| 2                         | MAP : 11-52-0-0           | NA                                                                                                                  | NA                                                                                                                  | NA                                                                                                                  | NA                                                                                                                  | NA       |
| 3                         | TSP : 0-46-0-0            | NA                                                                                                                  | NA                                                                                                                  | NA                                                                                                                  | NA                                                                                                                  | NA       |
| 4                         | MOP : 0-0-60-0            | 12734.57                                                                                                            | 11868.36                                                                                                            | 16188.17                                                                                                            | 19033.95                                                                                                            | 17910.74 |
| 5                         | 16-20-0-13                | 17192.06                                                                                                            | 16599.17                                                                                                            | 19479.17                                                                                                            | 19338.54                                                                                                            | 18725    |
| 6                         | 20-20-0-13                | 18241.08                                                                                                            | 17511.11                                                                                                            | 19696.06                                                                                                            | 20984.01                                                                                                            | 20592.32 |
| 7                         | 10-26-26-0                | 21838.58                                                                                                            | 21628.95                                                                                                            | 24895.05                                                                                                            | 25352.74                                                                                                            | 24491.77 |
| 8                         | 12-32-16-0                | 22055.94                                                                                                            | 21765.60                                                                                                            | 25272.41                                                                                                            | 25348.37                                                                                                            | 24469.58 |
| 9                         | 14-28-14-0                | NA                                                                                                                  | NA                                                                                                                  | NA                                                                                                                  | NA                                                                                                                  | NA       |
| 10                        | 14-35-14-0                | 23501.78                                                                                                            | 22791.36                                                                                                            | 27302.78                                                                                                            | 27100                                                                                                               | 25609.38 |
| 11                        | 15-15-15-0                | 0                                                                                                                   | 18121.93                                                                                                            | 20092.98                                                                                                            | 21436.67                                                                                                            | 20908.33 |
| 12                        | AS: 20.3-0-0-23           | 13245.83                                                                                                            | 13140.18                                                                                                            | 12824.38                                                                                                            | 13117.63                                                                                                            | 13349.8  |
| 13                        | 20-20-0-0                 | 17747.23                                                                                                            | 16426.46                                                                                                            | 18291.67                                                                                                            | 19675                                                                                                               | 19000    |
| 14                        | 28-28-0-0                 | 23404.84                                                                                                            | 22620.00                                                                                                            | 27341.67                                                                                                            | 27295.83                                                                                                            | 25707.99 |
| 15                        | 17-17-17-0                | 20997.44                                                                                                            | 19857.90                                                                                                            | 22841.67                                                                                                            | 25000                                                                                                               | 25000    |
| 16                        | 19-19-19-0                | 22271.86                                                                                                            | 21658.94                                                                                                            | 24700                                                                                                               | 26643.81                                                                                                            | 26237.5  |
| 17                        | SSP(0-16-0-11)*           | 7331.33                                                                                                             | NA                                                                                                                  | 7754.63                                                                                                             | 8030.97                                                                                                             | 8250.27  |
| 18                        | 16-16-16-0                | 17921.97                                                                                                            | 17799.35                                                                                                            | 19745.45                                                                                                            | 22881.25                                                                                                            | 21732.87 |
| 19                        | 15-15-15-09               | 17741.57                                                                                                            | 17782.53                                                                                                            | 18400                                                                                                               | 20671.11                                                                                                            | 20769.29 |
| 20                        | 24-24-0-0                 | 20899.48                                                                                                            | 20476.30                                                                                                            | 25019.44                                                                                                            | 25552.78                                                                                                            | 25149.31 |
| 21                        | 24-24-0-8                 | 20614.61                                                                                                            | 19685.45                                                                                                            | 24408.33                                                                                                            | 25133.33                                                                                                            | 25915.28 |
| 22                        | 14-28-0-0                 | NA                                                                                                                  | NA                                                                                                                  | NA                                                                                                                  | NA                                                                                                                  | 23437.5  |
| MRP is exclusive of Taxes | MRP is exclusive of Taxes |                                                                                                                     |                                                                                                                     |                                                                                                                     |                                                                                                                     |          |
| Blank space/NA means      | Blank space/NA means      |                                                                                                                     |                                                                                                                     |                                                                                                                     |                                                                                                                     |          |

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