Lok Sabha Question No. 2004 (UNSTARRED), answered on 2024-12-06
Subject: Subsidy on Fertilizer
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Darshan Singh Choudhary

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

## LOK SABHA

## UNSTARRED QUESTION NO.2004 TO BE ANSWERED ON 06.12.2024

## Subsidy on Fertilizer

2004:  SHRI DARSHAN  SINGH CHOUDHARY:

Will the Minister o f CHEMICALS AND FERTILIZERS be pleased to state:

- (a) the  extent  of  subsidy  being  provided  by  the  Government  on  total  fertilizer allocation for the year 2024-25;
- (b) the scheme of the Government for upgradation of the fertilizer plants; and
- (c) the initiatives being taken to promote organic and natural farming methods?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (SMT. ANUPRIYA PATEL)

- (a): Budget  Estimates  (BE)  for  the  year  2024-25  for  subsidy  on  fertilizers  is Rs.1,68,054 Crore.
- (b):          There  is  no  scheme  for  upgradation  of  fertilizer  plants.P&K  fertilizers  are covered under Open General License (OGL) and companies are free to import/produce these fertilizers as per their business dynamics. Based on examination of requests received, permission is granted to the fertilizer companies for increasing their manufacturing capacity and for induction of new P&K companies & their fertilizer products under Nutrient Based Subsidy Policy, with a view to boost manufacturing and make country self-reliant in fertilizer production.

Under New Investment Policy (NIP), to facilitate fresh investment in the Urea Sector and to make India self-sufficient in the Urea Sector under which 6 new urea units have been set up, with a production capacity of 12.7 Lakh MT each.Further, an exclusive policy for the revival of Talcher unit of FCIL through JVC of nominated PSUs namely Talcher Fertilizers Limited (TFL) by setting up a new Greenfield urea plant of 12.7  LMTPA  at  coal  gasification  route  has  also  been  approved.  In  addition,  the Government also notified the New Urea Policy (NUP) - 2015 on 25th May, 2015 for the  existing  25  gas-based  urea  units  with  one  of  the  objectives  of  maximizing indigenous  urea production  beyond  RAC.These  steps  together  have  facilitated increase  of  Urea  production  from  level  of  225  LMT  per  annum  during  2014-15  to  a record Urea Production at 314.09 LMT during 2023-24.

(c):            Government  is  promoting  organic  farming  on  priority  in  the  country  for improving soil health and water retention through of Paramparagat Krishi Vikas Yojana (PKVY) in all the States/UTs and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER). Under PKVY, assistance of Rs. 31,500 per ha for a period of three  years is  provided  for  promotion  of  organic  farming  to  cover  different components. Out of this, assistance of Rs. 15,000 per ha for a period of three years is provided  to  farmers  through  Direct  Benefit  Transfer  for  on-  farm  /off  -farm  organic inputs  majority  biofertilizers.Under  MOVCDNER,  assistance  of  Rs.  46,500/ha  for  3 years is provided for creation of Farmers Producer Organization, support to farmers for organic inputs etc. Out of this, assistance @ Rs. 32500/ ha for 3 years is provided to  farmers  for  off  -farm  /on  -farm  organic  inputs  under  the  scheme  including  Rs. 15,000 as Direct Benefit Transfer to the farmers.

The Government has approved the Market Development Assistance (MDA)@ Rs.1500/MT to promote organic fertilizers, viz., FOM/LFOM/PROM 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).

To promote natural farming methods, the Government of India has approved the National Mission on Natural Farming (NMNF) in its Cabinet meeting held on 25th November 2024 as a standalone centrally sponsored scheme with an overall outlay of ₹2481 crore. The Mission has a target to initiate natural farming in 7.5 Lakh ha land across the country.

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