Lok Sabha Question No. 2739 (UNSTARRED), answered on 2023-08-04
Subject: Fertilizer Subsidy to Farmers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Kinjarapu Ram Mohan Naidu

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

## UNSTARRED QUESTION NO.2739 TO BE ANSWERED ON 04.08.2023

## Fertilizer Subsidy to Farmers

## 2739:  SHRI RAM MOHAN NAIDU KINJARAPU:

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

- (a) the total amount of fertilizer subsidy provided to farmers and the number of farmers  benefitted  therefrom,  State-wise  including  Andhra  Pradesh  during the last one year;
- (b) the  details  of  the  average  amount  of  subsidy  received  by  the  farmers  in Andhra Praesh;
- (c) whether any audit or evaluation has been conducted by the Government to assess  the effectiveness and impact of the fertilizers subsidy programme in Andhra Pradesh and if so, the details thereof; and
- (d) the  details  of  the  findings  of  such  audit/evaluation  on  the  impact  of  the programme  specific to Andhra Pradesh and the subsequent actions taken/proposed to be taken based on such findings?

## ANSWER

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

(a) & (b):  Under the 'DBT in Fertilizers' system, 100% subsidy on various fertilizer grades  is  released  to  the  fertilizer  companies,  based  on  actual  sales  to  the beneficiaries    by  Aadhaar  authentication  through  POS  devices  installed  at  each retail shop.

The details of subsidy disbursed on fertilizer for the last one year in different States, including Andhra Pradesh is as follows.

| Financial Year   |   Amount (Rs. in Crores) |
|------------------|--------------------------|
| 2022-23          |                   254799 |

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

In  respect  of  P&K  Fertilizers,  the  Government  has  implemented  Nutrient Based Subsidy Policy w.e.f. 1.4.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under the policy, a fixed amount of subsidy, decided on annual/semi-annual basis, is provided on subsidised P&K fertilizers depending on their nutrient content. Under this  policy,  MRP  is  fixed  by  fertilizer  companies  as  per  market  dynamics  at reasonable level which is monitored by the Government.

Accordingly, any farmer who is buying these fertilizers is getting benefits of subsidy.  The  number  of  beneficiaries  for  the  last  one  year  in  different  States including Andhra Pradesh is annexed.

(c) & (d):  Department of Fertilizers conducted Pan India evaluation of Urea subsidy scheme, through Centre for Market Research & Social Development (CMRSD) in 2020.The Evaluation of the Urea Subsidy Scheme has yielded a wealth of very rich data as findings. Some of the findings of the evaluation are as under:

-  The  urea  subsidy  scheme  envisages  to  increase  indigenous  urea production. Due to implementation on NUP-2015, the production of urea increased from 225.8 LMT in 2014-15 to 244.75 LMT in 2015-16 (highest ever urea production in the country). Thereafter, level of production more or less maintained since 2015-16.
-  Over the years, subsidy amount has been increased and paid to the urea manufacturing units due to the increase in the price of gas.
-  The  study  noticed  that  Urea  Subsidy  Scheme  has  a  great  impact  on agricultural sector in increasing crop yield and reducing the expenditure of farmers for cultivation.  Also, it was noticed that due to the scheme, most  farmers  get  their  full  requirement  of  urea,  of  good  quality  and  in time.  Because  of  the  success  of  the  scheme,  there  is  improvement  in energy  efficiency  of  urea  industries.  Thus,  there  is  the  necessity  for continuation  of  the  urea  subsidy  scheme  to  help  the  urea  industries, farmers, and the agriculture sector.
-  After the implementation of New Urea Policy 2015 (NUP-2015), there is improvement  in  energy  efficiency  of  urea  industries  at  par  with  global standards.
-  Due  to  urea subsidy scheme,  most  of  the  farmers get their full requirement of urea and of good quality. The study observed that urea subsidy scheme has increased crop yield and reduced the expenditure of farmers for cultivation.
-  Majority of the farmers feel that there are benefits after the availability of the neem coated urea. Also, due to availability of 45 kg urea bag in place of 50 kg bag, 50% farmers are using less amount of urea in cultivation.

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Annexure-I

| State wise Beneficiary count for FY 2022-23   | State wise Beneficiary count for FY 2022-23   | State wise Beneficiary count for FY 2022-23   |
|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|
| Sl. No.                                       | State Name                                    | No. of Beneficiaries 1.4.22 - 31.3.23         |
| 1                                             | Andaman and Nicobar Islands                   | 3911                                          |
| 2                                             | Andhra Pradesh                                | 2576865                                       |
| 3                                             | Arunachal Pradesh                             | 419                                           |
| 4                                             | Assam                                         | 1156454                                       |
| 5                                             | Bihar                                         | 9042086                                       |
| 6                                             | Chhattisgarh                                  | 1819901                                       |
| 7                                             | Dadra and Nagar Haveli                        | 4748                                          |
| 8                                             | Delhi                                         | 14966                                         |
| 9                                             | Goa                                           | 29747                                         |
| 10                                            | Gujarat                                       | 3589418                                       |
| 11                                            | Haryana                                       | 1490200                                       |
| 12                                            | Himachal Pradesh                              | 223054                                        |
| 13                                            | Jammu and kashmir                             | 429671                                        |
| 14                                            | Jharkhand                                     | 874493                                        |
| 15                                            | Karnataka                                     | 2624907                                       |
| 16                                            | Kerala                                        | 303346                                        |
| 17                                            | Madhya Pradesh                                | 5498528                                       |
| 18                                            | Maharashtra                                   | 4864129                                       |
| 19                                            | Manipur                                       | 7558                                          |
| 20                                            | Mizoram                                       | 4430                                          |
| 21                                            | Nagaland                                      | 564                                           |
| 22                                            | Odisha                                        | 1917542                                       |
| 23                                            | Puducherry                                    | 16824                                         |
| 24                                            | Punjab                                        | 1184946                                       |
| 25                                            | Rajasthan                                     | 4200972                                       |
| 26                                            | Tamil Nadu                                    | 2735187                                       |
| 27                                            | Telangana                                     | 2075730                                       |
| 28                                            | Tripura                                       | 82206                                         |
| 29                                            | Uttarakhand                                   | 273367                                        |
| 30                                            | Uttar Pradesh                                 | 19617646                                      |
| 31                                            | West Bengal                                   | 2620506                                       |
|                                               | Total                                         | 69284321                                      |

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