Lok Sabha Question No. 4206 (UNSTARRED), answered on 2024-12-20
Subject: Production of Phosphate Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Md Abu Taher Khan

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

## LOK SABHA

UNSTARRED QUESTION NO. 4206 TO BE ANSWERED ON

## : 20.12.2024

## Production of Phosphate Fertilizers

## 4206. MD ABU TAHER KHAN :

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

- (a)     whether the production of phosphate fertilizer is required to be increased to make it easily accessible to all farmers, if so, the details thereof; and
- (b)        the  measures  proposed  to  be  taken  to  control  the  prices  of  other  chemical fertilizers and prevent its black marketing?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SMT. ANUPRIYA PATEL)

(a): In  case  of  Phosphatic  and  Potassic  (P&K)  fertilizers,  Government  has implemented  Nutrient  Based  Subsidy  (NBS)  Policy  w.e.f.  1.4.2010.  Under  the policy, a fixed amount of subsidy, decided on annual/bi-annual basis, is provided to manufacturer  /  importer  on  subsidized  P&K  fertilizers  depending  on  their  nutrient content  i.e.  Nitrogen  (N),  Phosphorus  (P),  Potassium  (K)  and  Sulphur  (S)  to improve availability of fertilizers to farmers. Import of P&K fertilizers is decontrolled and companies are free to import / produce fertilizer raw materials, intermediaries and finished fertilizers as per their business dynamics. Based on the requests, the new  manufacturing  units  or  increase  in  manufacturing  capacity  of  existing  units have  been recognized /  taken  on  record  under  the  NBS  subsidy  scheme,  with  a view  to boost  manufacturing  and  make  country  self-reliant  in  fertilizer  production. Further, to promote Potash derived from Molasses (PDM)  which is  100% indigenously  manufactured  fertilizer,  it  has  been  notified  under  Nutrient  based subsidy (NBS) regime w.e.f 13.10.2021. Also, freight Subsidy on SSP, which is an indigenously manufactured fertilizer, has been made applicable since Kharif 2022 to help  in  promotion  of  SSP usage for providing Phosphatic or 'P' nutrient to the soil.

(b): Urea is provided to the farmers at a statutorily notified Maximum Retail Price (MRP) irrespective of the cost of production. The subsidized MRP of 45 kg bag of urea  is  Rs.242  per  bag  (exclusive  of  charges  towards  neem  coating  and  taxes 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.

In  Phosphatic  &  Potassic  (P&K)  fertilizers,  under  Nutrient  Based  Subsidy (NBS) scheme, subsidy is fixed keeping in view international prices of key fertilizers & raw materials and fluctuations, if any, are subsumed while fixing NBS rates for P&K fertilizers annually / bi-annually.

Accordingly, all farmers are being supplied urea and P&K fertilizers at the subsidized affordable rates.

Fertilizers  are  declared  as  an  essential  commodity  under  the  Essential Commodities  Act,  1955  and  notified  under  Fertilizer  Control  Order,  1985.  State Governments  are  empowered  to  take  action  against  persons  involved  in  blackmarketing,  hoarding  and  smuggling  as  per  provisions  of  EC  Act.  Any  complaint received at Department of Fertilizers level regarding black marketing/over-pricing of fertilizers is sent to concerned State Government to take appropriate action under Essential Commodities Act, 1955 and Fertilizer Control Order, 1985.

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