Lok Sabha Question No. 322 (STARRED), answered on 2023-08-11
Subject: Subsidy on Urea Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: L.S. Tejasvi Surya

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

## LOK SABHA

## STARRED QUESTION NO. 322* TO BE ANSWERED ON: 11.08.2023

## Subsidy on Urea Fertilizers

## 322*   SHRI  L.S. TEJASVI SURYA:

- Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state: (a) the  total  subsidy  being  provided  to  farmers  for  procuring  urea  fertilizers  in  the country during the last four years, year-wise; (b) whether  there  has  been  a  year-on-year  increase  in  the  subsidy  provided  by  the Government and if so, the details thereof; (c) whether due to the war in Ukraine, the Government has taken/proposes to take any measures to ensure continuous and smooth supply of urea and fertilizers for farmers in the country and if so, the details thereof; and whether the Government has taken any other steps to ensure increase in domestic
- (d) manufacturing of urea and other fertilizers and if so, the details thereof?

## ANSWER

MINISTER OF CHEMICALS & FERTILIZERS AND HEALTH & FAMILY WELFARE

(DR. MANSUKH MANDAVIYA)

- (a) to (d):  A statement is laid on the table of the House.

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## STATEMENT  REFERRED  TO  LOK  SABHA  STARRED  QUESTION  NO.  322*  FOR 11.08.2023  REGARDING  'SUBSIDY  ON  UREA  FERTILIZERS'  TABLED  BY  SHRI SHRI  L.S. TEJASVI SURYA.

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(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 urea fertilizers and year on year increase in urea subsidy for the last four years are as under:

## (Rs. In Crores)

|   Sl. No. | Financial Year   |   Expenditure on Urea Subsidy | Year on Year Increase (%)   |
|-----------|------------------|-------------------------------|-----------------------------|
|         1 | 2019-20          |                       57097.7 | -                           |
|         2 | 2020-21          |                       93857   | 64.38                       |
|         3 | 2021-22          |                      104870   | 11.73                       |
|         4 | 2022-23          |                      168677   | 60.84                       |

(c) & (d):  The Russia Ukraine war resulted in increase in prices of fertilizers and its raw materials  at  global  level.  However,  Government  of  India  has  ensured  availability  of fertilizers at reasonable prices by increasing the quantum of subsidies. The expenditure incurred  on  the  fertilizers'  subsidy  in  2021-22  was  Rs.  1,57,640.09  Crores  which  has increased to Rs. 2,54,798.93 Crores in 2022-23. Government of India also facilitated long term agreements and Joint Ventures (JVs) to ensure adequate supply of fertilizers.

In order to increase the availability of urea through indigenous sources, Government of India announced New Investment Policy (NIP) - 2012 to facilitate fresh investment in the Urea sector and to make India self- sufficient in the Urea sector. A total of  6  Urea  units  viz.2  new  at  Panagarh,  Gadepanand  4  revived  at  Gorakhpur,  Sindri, Barauni, Ramagundam have been set up under NIP - 2012, which together have added 76.2 LMT per annum in the existing indigenous Urea production capacity of the country.

In addition, Government of India also introduced the New Urea Policy (NUP)-2015 on 25 th May, 2015 with one of the objectives of maximizing indigenous urea production. Total urea production capacity of the country has increased from 207.54 LMT in 2017-18 to 283.74 LMT in 2022-23.

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