Lok Sabha Question No. 179 (STARRED), answered on 2024-08-02
Subject: Nutrient Based Subsidy (NBS) Scheme
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Dr. D. Purandeswari, Shri Naresh Ganpat Mhaske

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

## LOK SABHA

STARRED QUESTION NO. 179 TO BE ANSWERED ON

: 02.08.2024

## NUTRIENT BASED SUBSIDY (NBS) SCHEME

179*.  SMT. DAGGUBATI PURANDESWARI: SHRI  NARESH GANPAT MHASKE:

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

- (a) the  objective  and  key  components  of  the  Nutrient  Based  Subsidy  (NBS) scheme; (b) the total amount of subsidy disbursed under the NBS scheme during the last five years, year-wise and nutrient-wise; (c) the  data  on  impact  of  the  NBS  scheme  on  fertilizer  usage  patterns  and agricultural productivity; and the  measures  taken/proposed  to  be  taken  by  the  Government  to  ensure  the
- (d) effective implementation and monitoring of the NBS scheme across the country?

## ANSWER

MINISTER OF CHEMICALS & FERTILIZERS AND HEALTH & FAMILY WELFARE (SHRI JAGAT PRAKASH NADDA)

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

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STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO.  179*  FOR  02.08.2024  REGARDING  'NUTRIENT  BASED  SUBSIDY  (NBS) SCHEME'  TABLED  BY  SMT.  DAGGUBATI  PURANDESWARI  &  SHri  NARESH GANPAT MHASKE:

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(a): The main objectives of Nutrient Based Subsidy (NBS) Scheme under implementation w.e.f. 01.04.2010 are as under:

- i. To promote balanced use of fertilizers.
- ii. To improve timely availability of fertilizers to farmers at affordable prices.
- iii.  To encourage competition among fertilizer companies.
- iv.  To encourage introduction of new and innovative fertilizers.
- v. To rationalize fertilizer subsidy.

The key components of NBS scheme are as under:

- i. Nutrient-Based  Subsidy :  The  subsidy  is  provided  based  on  the  actual nutrients contained in the fertilizers (Nitrogen, Phosphorus, Potassium and Sulphur) to encourage  the use of fertilizers specific to the nutrient requirements of the soil and crops.
- ii. Timely availability at affordable price :  The  NBS  scheme  provides subsidized  fertilizers  to  farmers  by  making  them  timely  available  and  at affordable price.

(b): Under  the  NBS  Scheme,  a  fixed  rate  of  subsidy  (in  Rs.  per  Kg  basis)  is announced on nutrients namely Nitrogen (N), Phosphate (P), Potash (K) and Sulphur (S) by the Government on annual/ bi-annual basis. The per Kg subsidy rates on the nutrient N, P, K, S is converted into per tonne subsidy on the various P&K fertilizers covered  under  the  NBS  Policy.  The  details  of  total  amount  of  subsidy  disbursed under the NBS scheme during the last five years is as under:

(In Rs. Cr.)

| Product Group   |   2019-20 |   2020-21 |   2021-22 |   2022-23 |   2023-24 |   2024-25 as on 22.07.2024 |
|-----------------|-----------|-----------|-----------|-----------|-----------|----------------------------|
| P&K Fertilizers |     26335 |   37303.7 |   52726.2 |   86122.2 |   65199.6 |                      11720 |

(c): A study conducted on impact  of NBS policy in 2020  has  shown that  use of Phosphatic  &  Potassic  (P&K)  fertilizers  helped  in  improving  productivity  in  the  farm land and multi-nutrient deficiency of the soil. The consumption of NPK fertilizers rose from 281.22 LMT in 2010-11 to 290.39 LMT in 2019-20. As per the report, there is a substantial  increase  in  production  of  major  crops  since  inception  of  NBS  scheme. Foodgrain  yield  per  hectare  increased  from  1930  Kg/hectare  in  2010-11  to  2233 Kg/hectare in 2017-18, an increase of 16% over a period of 7 years.

(d): In order to ensure smooth availability of P&K fertilizers at affordable rates to farmers, following measures are taken by the Government for effective implementation and monitoring of the NBS scheme across the country:

- i. Department of Fertilizers (DoF) in consultation with Department of Agriculture and  Farmers'  Welfare  (DA&FW)  assesses  the  requirement  of  fertilizers  in upcoming  seasons  and  ensures  the  timely  availability  of  fertilizers  which  is taken into consideration at the time of fixation of NBS subsidy rates for Kharif and Rabi seasons.
- ii. The  MRPs/Sale  price  of  P&K  fertilizers  is  monitored  through  Integrated Fertilizer Management System (iFMS) portal.
- iii.  Permission is granted to the fertilizer companies for increasing their manufacturing  capacity  and  for    induction  of  new  P&K  companies  &  their fertilizer  products under NBS, with a view to boost manufacturing and make country  self-reliant  in  fertilizer  production.  Any  gap  between  production  of fertilizers and demand is fulfilled through  import of P&K fertilizers.
- iv.  In  order  to  boost  indigenous  production  of  P&K  fertilizers,  Potash  derived from  Molasses  (PDM)  which  is  100%  indigenously  manufactured  fertilizer, has been notified under Nutrient based subsidy (NBS) regime w.e.f 13.10.2021. Further, freight subsidy on Single Super Phosphate (SSP), which is  an  indigenously  manufactured  fertilizer,  has  been  made  applicable  to promote SSP usage for providing Phosphatic or 'P' nutrient to the soil.
- v. In order to keep MRPs of P&K fertilizers at reasonable level and affordable for farmers, the Government issued  guidelines dated 15.11.2019 & 18.01.2024 for  evaluation  of  reasonableness  of  MRP's  of  Phosphatic  &  Potassic  (P&K) fertilizers  by  P&K  fertilizer  companies  under  the  Nutrient  Based  Subsidy (NBS) Scheme.
- vi.  Further, in order to facilitate availability of raw materials/intermediates required for  indigenous  production  of  P&K  fertilizers,  Ortho-phosphoric  Acid  used  is exempted from Quality Control Order (QCO) Standards.

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