Lok Sabha Question No. 206 (UNSTARRED), answered on 2024-02-02
Subject: Rise in Prices of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Pratima Mondal

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

UNSTARRED QUESTION NO. 206 TO BE ANSWERED ON

: 02.02.2024

## Rise in Prices of Fertilizers

## 206.    SHRIMATI PRATIMA MONDAL:

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

- (a) whether the Government is aware that the prices of fertilizers are rising drastically in the country;
- (b) if so, the details thereof;
- (c) the steps taken/proposed to be taken by the Government to check the prices of fertilizers in the country;
- (d) whether this sharp hike in prices of fertilizers is likely to affect the availability of fertilizers at affordable price in the country;
- (e) if so, the details thereof; and
- (f) the action taken/proposed to be taken by the Government to ensure sufficient availability of fertilizers in domestic market in the country?

## ANSWER

## MINISTER OF STATE FOR CHEMICALS & FERTILIZERS (SHRI BHAGWANTH KHUBA)

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

For Phosphatic and Potassic (P&K) Fertilizers, Government has implemented  Nutrient  Based  Subsidy  Policy  w.e.f.  1.4.2010    Under  the  policy,  a fixed  amount  of  subsidy,  decided  on  annual/semi-annual  basis,  is  provided  on notified  P&K  fertilizers  depending  on  their  nutrient  content  and   MRP  is  fixed  by fertilizer companies as per market dynamics at reasonable level which is monitored by the Government.  While fixing the subsidy rates under NBS, Government takes into consideration various factors including affordability of farmers to purchase the notified P&K fertilizers. To check prices and ensure affordability of P&K fertilizers to the farmers, international prices of fertilizers and their raw materials are monitored and subsidy rates are reviewed on need basis and notified from time to time.For P&K  fertilizers  notified  under  the  Nutrient  Based  Subsidy  (NBS)  ,  the  average MRPs have remained more or less same. The grade-wise average MRP of 50 Kg bag of most consumed P&K fertilizers notified under NBS for  2021-22,2022-23 and 2023-24 (30.01.2024) is as under:

| S. No.   | NPK Fertilizer Grade   | Average MRP of 50 Kg bag (in Rs.)   | Average MRP of 50 Kg bag (in Rs.)   | Average MRP of 50 Kg bag (in Rs.)   |
|----------|------------------------|-------------------------------------|-------------------------------------|-------------------------------------|
|          |                        | 2021-22                             | 2022-23                             | 2023-24 (upto 30.01.2024)           |
| 1        | DAP (18-46-0-0)        | 1250.20                             | 1347.00                             | 1350.00                             |
| 2        | MOP (0-0-60-0)         | 1166.90                             | 1707.40                             | 1710.40                             |
| 3        | SSP (0-16-0-11)        | 354.75                              | 501.80                              | 526.80                              |
| 4        | NPK 10-26-26           | 1487.55                             | 1488.05                             | 1469.70                             |
| 5        | NPK 12-32-16           | 1436.65                             | 1578.10                             | 1497.90                             |
| 6        | NPK 20-20-0-13         | 1232.65                             | 1402.30                             | 1256.80                             |

(d) & (e) : Does not arise.

(f): The availability  of  fertilizers  viz.  Urea,  DAP,  MOP  and  P&K  has  remained comfortable during the ongoing Rabi 2023-24 season as per the table given below:

| ALL INDIA POSITION FOR RABI 2023-24 (UPTO 29.01.2024) Fig. in LMT   | ALL INDIA POSITION FOR RABI 2023-24 (UPTO 29.01.2024) Fig. in LMT   | ALL INDIA POSITION FOR RABI 2023-24 (UPTO 29.01.2024) Fig. in LMT   | ALL INDIA POSITION FOR RABI 2023-24 (UPTO 29.01.2024) Fig. in LMT   | ALL INDIA POSITION FOR RABI 2023-24 (UPTO 29.01.2024) Fig. in LMT   | ALL INDIA POSITION FOR RABI 2023-24 (UPTO 29.01.2024) Fig. in LMT   | ALL INDIA POSITION FOR RABI 2023-24 (UPTO 29.01.2024) Fig. in LMT   |
|---------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------|
| S. No                                                               | Product                                                             | Seasonal Requirement for RABI 2023-24                               | Pro rata Requirement From 01/10/2023 to 29/01/2024                  | Availability From 01/10/2023 to 29/01/2024                          | Cumulative DBT Sales From 01/10/2023 to 29/01/2024                  | Closing Stock as on 29/01/2024                                      |
| 1                                                                   | UREA                                                                | 185.41                                                              | 146.28                                                              | 195.25                                                              | 131.30                                                              | 63.95                                                               |
| 2                                                                   | DAP                                                                 | 54.99                                                               | 47.61                                                               | 53.10                                                               | 38.78                                                               | 14.31                                                               |
| 3                                                                   | MOP                                                                 | 12.60                                                               | 9.41                                                                | 13.21                                                               | 6.13                                                                | 7.08                                                                |
| 4                                                                   | NPKS                                                                | 63.60                                                               | 48.16                                                               | 73.87                                                               | 40.41                                                               | 33.46                                                               |

(f): Before the commencement of each cropping season, Department of Agriculture and Farmers Welfare (DA&FW) assesses the state-wise & month-wise requirement  of  fertilizers.  To  fulfil  this  requirement  of  fertilizers  in  the  states (including  rural  tribal  and  remote  areas)  across  the  country,  as  per  assessment done  by  DA&FW,  Department  of  Fertilizers  allocates  adequate  quantities  of fertilizers  to  States  by  issuing  monthly  supply  plans.  The  movement  of  all  major subsidized  fertilizers  is  monitored  through  web-based  monitoring  system  called integrated  Fertilizer  Monitoring  System  (iFMS).  However,  the  inter/intra-district distribution  of  fertilizers  is  being  done  by  the  respective  state  to  meet  the  field requirement within the state.

Also,  the  Government  had  announced  New  Investment  Policy  (NIP)  2012 on 2 nd January, 2013 and its amendment on 7 th October, 2014 to facilitate fresh investment in the urea sector and to make India self-sufficient in the urea sector. Total 6 new urea units have been set up under NIP  - 2012. These are Panagarh urea unit of Matix Fertilizers and Chemicals Ltd. (Matix); Gadepan-III urea unit of Chambal Fertilizers and Chemicals Ltd. (CFCL); Ramagundam urea unit  of  Ramagundam  Fertilizers  and  Chemicals  Ltd.(RFCL);  and  3  urea  units namely Gorakhpur, Sindri and Barauni of Hindustan Urvarak & Rasayan Limited (HURL). Each of these units have the installed urea production capacity of 12.7 Lakh Metric Tonne per annum. Therefore, these units have together added 76.2 LMT per annum in the existing indigenous urea production capacity of the country which is currently 283.74 LMT. An exclusive policy has been notified on 28 th April 2021 for the revival of Talcher unit of FCIL by setting up a new greenfield urea plant of 12.7 LMT per annum at coal gasification route.

Further,  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  NBS,  with  a view to boost manufacturing and make country self-reliant in fertilizer production. The other measures taken are:

(i) To  promote  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.

(ii)          Freight  subsidy on SSP, which is an indigenously manufactured fertilizer, has been made applicable for Kharif and Rabi 2023-24 to help in promotion of SSP usage for providing Phosphatic or 'P' nutrient to the soil.

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