Lok Sabha Question No. 3483 (UNSTARRED), answered on 2025-03-21
Subject: Nutrient Based Subsidy Scheme
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Dr. Shrikant Eknath Shinde, Shri Ravindra Dattaram Waikar, Smt. Shambhavi, Shri Rajesh Verma, Shri Naresh Ganpat Mhaske

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

## LOK SABHA

UNSTARRED QUESTION NO. 3483 TO BE ANSWERED ON

: 21.03.2025

## Nutrient Based Subsidy Scheme

3483.  SHRI NARESH GANPAT MHASKE DR. SHRIKANT EKNATH SHINDE SHRI RAJESH VERMA SMT. SHAMBHAVI SHRI RAVINDRA DATTARAM WAIKAR:

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

- (a) whether  the  Government  has  implemented  the  Nutrient  Based  Subsidy (NBS)  scheme  for  Phosphatic  &  Potassic  (P&K)  fertilizers,  and  if  so,  the details of the subsidy rates fixed for DAP during Kharif 2024 and Rabi 202425;
- (b) whether there are special packages provided by the Government to ensure the availability of DAP at affordable prices to farmers, and if so, the specific details of these packages and their financial implications;
- (c) whether the Government has taken steps to promote Potash Derived from Molasses(PDM) under the NBS regime, and if so, the details of this initiative; and
- (d) whether these initiatives are expected to enhance self-sufficiency in fertilizer production  in  the  country,  and  if  so,  the  anticipated  outcomes  of  these efforts?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (SMT. ANUPRIYA PATEL)

(a)  &  (b): Government  has  implemented  Nutrient  Based  Subsidy  (NBS)  Policy w.e.f.  01.04.2010.  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. Under NBS scheme, The P&K sector is decontrolled, fertilizer companies are allowed to fix MRP  at  reasonable  levels  which  is  monitored  by  the  Government.  The  fertilizer companies are free to import / produce fertilizer raw materials, intermediaries and finished  fertilizers  as  per  their  business  dynamics.  In  view  of  price  volatility  in international  prices  of  key  fertilizers  and  raw  materials,  the  Government  has subsumed fluctuations, if any, while fixing NBS rates for P&K fertilizers annually/biannually. Subsidy rate fixed for DAP during Kharif 2024 (01.04.2024 to 30.09.2024) and Rabi 2024-25 (01.10.2024 to 31.03.2025) is Rs. 21676 per MT and Rs. 21911 per MT respectively.

In wake of recent geopolitical crisis which led to major disruption in supply of fertilizers, pro-active steps were taken in Kharif 2024 to ensure smooth availability of  P&K  fertilizers  to  the  farmers.  In  July  2024,   the  Government  took  immediate measures to ensure regular imports through a one-time special package on DAP beyond the NBS rates for the period from 01.04.2024 till 31.12.2024 @ 3,500 per MT which has now been extended till 31.03.2025 to ensure sustainable availability of  DAP  at  affordable  price  to  the  farmers.  The  total  financial  implication  for  the above package for the year 2024-25 is approximately Rs. 3346 crores which is to be paid from the budgetary allocation for NBS Scheme for year 2024-25.

Under the provision of special package on DAP, as an interim measure, Rs. 3,000 per MT is paid to fertilizer companies on actual PoS sales. The balance Rs. 500 per MT is paid after scrutiny of the bills / claims furnished by the companies which are duly audited by their Statutory Auditors.

(c)  &  (d): Government has notified  Potash  Derived  from  Molasses  (PDM)  under Nutrient  Based  Subsidy  Scheme  w.e.f.  13.10.2021.  Government  has  also  issued guidelines  dated  12.07.2022  for  induction,  marketing  arrangement  and  quality  of PDM.  As  on  date  total  05  PDM  granulating  companies  with  06  units  have  been inducted under NBS scheme. Further, in order to promote increased production of PDM with assured off-take by fertilizer companies, the Joint Working Group (JWG) of  Department  of  Food  &  Public  Distribution  and  Department  of  Fertilizers  in consultation  with  Indian  Sugar  Mills  Association  (ISMA)  &  fertilizer  companies decided  to  fix  price  of  PDM  at  Rs.  4263/Ton  (inclusive  of  bagging,  loading  and taxation). As a result of sustained efforts for promotion, sales of PDM stood at 3.75 LMT during 2024-25 (till 15.03.2025).

********