Lok Sabha Question No. 1410 (UNSTARRED), answered on 2023-07-28
Subject: Fertilizer Subsidy for Kharif Season 2023-24
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Sisir Kumar Adhikari

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

## UNSTARRED QUESTION NO.1410 TO BE ANSWERED ON 28.07.2023

Fertilizer Subsidy for Kharif Season 2023-24

## 1410:  SHRI SISIR KUMAR ADHIKARI:

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

- (a) whether the Government has approved Rs. 1.08 lakh crore for fertilizer subsidy for the Kharif season 2023-24;
- (b) if so, the details thereof along with the subsidy earmarked for the said purpose and the list of beneficiaries there under, State-wise; and
- (c) whether such step by the Government will overshoot the budget allocation for 2023-24 and if so, the details thereof?

## ANSWER

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

(a) &  (c):      An  amount  of  Rs.  1.79  lakh  crore  has  been  allocated  to  Fertilizer subsidy under Budget Estimates (BE) for the financial year 2023-24.  The details of allocation is as under:

| Subsidy Schemes                  |   Budget Estimates (BE) 2023-24 |
|----------------------------------|---------------------------------|
| Indigenous P&K Fertilizers       |                           25500 |
| Imported P&K Fertilizers         |                           18500 |
| Indigenous Urea                  |                          104063 |
| Import of Urea                   |                           31000 |
| Total Subsidy (Amount in Crores) |                          179063 |

Under  the  'DBT  in  Fertilizers'  system,  100%  subsidy  on  various  fertilizer grades  is  released  to  the  fertilizer  companies,  based  on  actual  sales  to  the beneficiaries    by  Aadhaar  authentication  through  POS  devices  installed  at  each retail shop.

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). 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. Accordingly, all farmers are being supplied urea at the subsidized rates.

Government has implemented Nutrient Based Subsidy Policy w.e.f. 1.4.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under the policy, a fixed amount  of subsidy, decided on annual/semi-annual basis, is provided on subsidised P&K fertilizers depending on their nutrient content. Under this policy, MRP is fixed by fertilizer companies as per market dynamics at reasonable level which  is  monitored  by  the  Government.  Accordingly,  the  latest  subsidy  rates  for P&K fertilizers under the NBS Scheme are as under:

|   S. No | Nutrients   |   NBS rates for Kharif 2023 (Rs. Per kg of nutrient) (from 1.4.2023 to 30.9.2023) |
|---------|-------------|-----------------------------------------------------------------------------------|
|       1 | N           |                                                                             76.49 |
|       2 | P           |                                                                             41.03 |
|       3 | K           |                                                                             15.91 |
|       4 | S           |                                                                              2.8  |

The funds provided in Union Budget 2023-24 at Budget Estimate (BE) stage for fertilizer subsidy is more than the Budget Estimate (BE) 2022-23. In case of any additional requirement for funds, Department of Fertilizers will approach Ministry of Finance at appropriate time.

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