Lok Sabha Question No. 3551 (UNSTARRED), answered on 2025-03-21
Subject: Supply and Price Regulation of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri  Chhotelal

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

UNSTARRED QUESTION NO. 3551 TO BE ANSWERED

ON: 21.03.2025

## Supply and Price Regulation of Fertilizers

## 3551:  SHRI CHHOTELAL:

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

- (a) whether  the  Government  has  formulated  any  special  scheme  to  ensure  the supply and price regulation of fertilizers in the country; and
- (b) if  so,  the  various  steps  taken  by  the  Government  to  provide  farmers  with affordable and adequate supply of fertilizers?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (SMT. ANUPRIYA PATEL)

- (a)  &  (b):      The  following  steps  are  taken  by  the  Government  every  season  for ensuring timely and adequate availability of fertilizers in the country:
- i. Before the commencement  of each cropping season, Department of Agriculture  and  Farmers  Welfare  (DA&FW),  in  consultation  with  all  the  State Governments, assesses the state-wise & month-wise requirement of fertilizers.
- ii. On  the  basis  of  requirement  projected,  Department  of  Fertilizers  allocates adequate  quantities  of  fertilizers  to  States  by  issuing  monthly  supply  plan  and continuously monitors the availability.
- iii. The movement of all major subsidized fertilizers is monitored throughout the country  by  an  on-line  web  based  monitoring  system  called  integrated  Fertilizer Monitoring System (iFMS);
- iv. Regular Weekly Video Conference is conducted jointly by DA&FW and D/o Fertilizers  with  State  Agriculture  Officials  and  corrective  actions  are  taken  to dispatch fertilizers as indicated by the State Governments.

Further, in order to ensure supply of Urea at affordable prices, under Urea Subsidy  Scheme,  it  is  presently  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).  The difference  between  the  delivered  cost  of  urea  at  farm  gate  and  net  market realization by the urea units is given as subsidy to the urea manufacturer/importer by the Government of India.

Moreover,  Government  has  implemented  Nutrient  Based  Subsidy  Policy w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers.  Under the policy, a fixed amount of subsidy, decided on annual/bi-annual basis, is provided on notified P&K fertilizers depending on their nutrient content. The P&K sector is decontrolled, fertilizer companies are allowed to fix MRP at reasonable levels. The fertilizer companies manufacture/import fertilizers as per the market dynamics.  The Government monitors  international  prices  of  key  fertilizers  and  raw  materials  and fluctuations, if any, are subsumed while fixing NBS rates for P&K fertilizers annually / bi-annually to ensure affordable supply of P&K fertilizers to the farmers.

Besides, 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  to 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.

*******