Lok Sabha Question No. 454 (UNSTARRED), answered on 2023-07-21
Subject: Over Usage of Fertilizer
Ministry: CHEMICALS AND FERTILIZERS
Asked by: D. M. Kathir Anand

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

UNSTARRED QUESTION NO. 454 TO BE ANSWERED ON : 21.07.2023

## Over usage of fertilizer

## 454. SHRI D.M. KATHIR ANAND;

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

- (a) whether the Government is providing Rs. 80,000 crore as Fertilizer subsidy every year and if so, the details thereof along with the current prices of fertilizers and the subsidy provided to farmers during the last three years, State-wise;
- (b)        whether  it  is  a  fact  that  over  usage  of  fertilizer  is  a  bigger  challenge  than  the provision of subsidy and if so, the details thereof; and
- (c)      the steps taken/proposed to be taken by the Government to control the over use of Chemical fertilizers and to promote organic fertilizers in the country?

## ANSWER

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

(a)  :      Yes  Sir,  Government  has  provided  subsidy  more  than  Rs.  80,000  crore  as Fertilizer  subsidy.  This  subsidy  is  released  to  Fertilizer  companies  and  allocation  of funds is done scheme-wise and not on State-wise basis. The expenditure incurred on the fertilizers subsidy in the last 3 years is as under:

(Rs. in Crore)

|   S.NO. | Financial Year   | Expenditure on subsidy   |
|---------|------------------|--------------------------|
|       1 | 2020-21          | 1,31,229.50              |
|       2 | 2021-22          | 1,57,640.09              |
|       3 | 2022-23          | 2,54,841.43              |

Sir, 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.

As  far  as  P&K  fertilizers  are  concerned  the  current  average  MRP  of  P&K fertilizers grade-wise is enclosed as Annexure - A.

(b) to (c) : With the mandate to make fertilizer available at affordable and reasonable rates to farmers, to ensure balanced fertilizer use with the aim to achieve self suffiency in  food,  Govt.  provides  subsidy  through  Nutrient  based  subsidy  scheme  and  Urea subsidy schemes. The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 28 th June, 2023 has approved the Market Development Assistance (MDA) @ Rs.  1500/MT  to  promote  organic  fertilizers,  i.e.    manure  produced  at  plants  under GOBARdhan initiative covering different Biogas/CBG support schemes/programmes of stakeholder Ministries/Departments such as Sustainable Alternative Towards Affordable Transportation (SATAT) scheme of MoPNG, 'Waste to Energy' programme of MNRE, Swachh Bharat Mission (Rural) of DDWS, etc. with total outlay of Rs. 1451.84 Crore (FY 2023-24 to 2025-26), which includes a corpus of Rs. 360 crore for research gap funding, etc.

Further, CCEA in its meeting held on 28th June, 2023 has also approved the 'PM Programme for Restoration, Awareness Generation, Nourishment, and Amelioration of Mother-Earth  (PM-PRANAM)'.  The  initiative  aims  to  support  the  mass  movement started by States/UTs to save the health of Mother Earth by promoting sustainable and balanced use of fertilizers, adopting alternate fertilizers, promoting organic farming and implementing  resource  conservation technologies. Under  the  said scheme,  it is proposed that 50% of the fertilizer subsidy saved by a State/UT in a particular financial year by way of reduction in consumption of chemical fertilizers (Urea, DAP, NPK, MOP) compared to previous 3 years' average consumption, will be passed on to that State/UT as Grant.

## ***********

ANNEXURE - A

| Grade-wise Average MRP   | Grade-wise Average MRP            | Grade-wise Average MRP   |
|--------------------------|-----------------------------------|--------------------------|
| S.No                     | Product Name                      | 2023-24 ( till July-23)  |
| 1                        | 10-26-26                          | 29389                    |
| 2                        | 12-32-16                          | 30614                    |
| 3                        | 14-28-0-0                         | 31286                    |
| 4                        | 14-28-14                          | -                        |
| 5                        | 14-35-14                          | 30400                    |
| 6                        | 15-15-15                          | 29400                    |
| 7                        | 15-15-15-9                        | 29000                    |
| 8                        | 16-20-0-13                        | 23902                    |
| 9                        | 17-17-17                          | 25000                    |
| 10                       | 19-19-19                          | 31000                    |
| 11                       | 20-20-0                           | 23507                    |
| 12                       | 20-20-0-13                        | 24607                    |
| 13                       | 24-24-0                           | 33619                    |
| 14                       | 24-24-0-8                         | 30000                    |
| 15                       | 28-28-0                           | 30000                    |
| 16                       | Amm Sulphate                      | 20000                    |
| 17                       | City Compost                      | -                        |
| 18                       | DAP                               | 27000                    |
| 19                       | Imported 10-26-26                 | 28742                    |
| 20                       | Imported 12-32-16                 | 31557                    |
| 21                       | Imported 15-15-15                 | 29175                    |
| 22                       | Imported 15-15-15-9               | 29047                    |
| 23                       | Imported 16-16-16                 | 24275                    |
| 24                       | Imported 16-20-0-13               | 28995                    |
| 25                       | Imported 17-17-17                 | -                        |
| 26                       | Imported 20-20-0-13               | 26243                    |
| 27                       | Imported DAP                      | 27000                    |
| 28                       | Imported MAP                      | 33973                    |
| 29                       | MOP                               | 34685                    |
| 31                       | SSP-Boronated                     | 11612                    |
| 32                       | SSP-Granular                      | 10559                    |
| 33                       | SSP-Powdered                      | 10023                    |
| 34                       | SSP-Zincated(Granular)            | 11280                    |
| 35                       | SSP-Zincated(Powder)              | 10466                    |
| 36                       | SSP-Zincated-Boronated(Granular)  | 13439                    |
| 37                       | TSP                               | 25000                    |
| 38                       | Zinc and Boron NPK 8-21-21(40 Kg) | 43750                    |
| 39                       | Zinc and Boron NPK 9-24-24(40Kg)  | 44750                    |
| 40                       | Zincated 10-26-26                 | 30000                    |
| 41                       | Zincated 20-20-0-13               | -                        |
| 42                       | Zincated NPK 14-35-14             | 32000                    |