Lok Sabha Question No. 249 (UNSTARRED), answered on 2023-07-21
Subject: Decline in Fertilizer Subsidy
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Manne Srinivas Reddy, Komati Reddy Venkat Reddy, Raghu Ramakrishna Raju Kanumuru

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

UNSTARRED QUESTION NO. 249 TO BE ANSWERED ON : 21.07.2023

## Decline in fertilizer Subsidy

249

SHRI MANNE SRINIVAS REDDY:

SHRI KOMATI REDDY VENKAT REDDY:

SHRI KANUMURU RAGHU RAMA KRISHNA RAJU:

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

- (a) whether fertilizer subsidies have declined over the last few years;
- (b) if so, the details thereof;
- (c) whether  the  budgetary  cut  along  with  the  decline  in  subsidies  at  a  time  when prices  of  fertilizers  has  risen  sharply  after  the  Ukraine  war  leading  to  its shortages has affected the farmers across the country;
- (d) if so, the details thereof and the reasons therefore, year-wise since 2010; and
- (e) whether the Government has taken any steps to incentivize farmers to continue agricultural operations in such situation and help them at field level?

## ANSWER

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

(a) to  (d):  The expenditure incurred in the fertilizers subsidy in the 3 years is as follow:-

## (Rs in Crore)

|   S. No | Financial year   |   Expenditure on subsidy |
|---------|------------------|--------------------------|
|       1 | 2020-21          |                   131230 |
|       2 | 2021-22          |                   157640 |
|       3 | 2022-23          |                   254841 |

As may be seen there is no budgetary cut or decline in fertilizer subsidies and the availability  of  Chemical  fertilizers  in  India  has  remained  comfortable  during  the  last  2 years i.e. 2021-22, 2022-23 and in the ongoing Kharif 2023 season.

(e):    Under  Urea  subsidy  scheme  Urea  is  provided  to  the  farmers  at  a  statutory 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 unit is given as subsidy to the urea manufacturer/importer by the Government of  India.  Accordingly,  all  farmers  are  being  supplied  urea  at  a  statutorily  fixed  and subsidized rates irrespective of the cost of production/import of the urea.

As far as P&K fertilizers are concerned, 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.  The current average MRP of P&K fertilizers gade-wise is enclosed as Annexure - A.

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## Grade-wise Average MRP

|   S.No | Product Name                      | 2021-22   | 2022-23   | 2023-24 ( till July-23)   |
|--------|-----------------------------------|-----------|-----------|---------------------------|
|      1 | 10-26-26                          | 29353     | 29603     | 29389                     |
|      2 | 12-32-16                          | 29082     | 30951     | 30614                     |
|      3 | 14-28-0-0                         | 28392     | 31613     | 31286                     |
|      4 | 14-28-14                          |           | 35900     |                           |
|      5 | 14-35-14                          | 32654     | 33691     | 30400                     |
|      6 | 15-15-15                          | 25658     | 29475     | 29400                     |
|      7 | 15-15-15-9                        | 25295     | 29000     | 29000                     |
|      8 | 16-20-0-13                        | 23568     | 26546     | 23902                     |
|      9 | 17-17-17                          | 25000     | 25000     | 25000                     |
|     10 | 19-19-19                          | 32667     | 34000     | 31000                     |
|     11 | 20-20-0                           | 21975     | 25362     | 23507                     |
|     12 | 20-20-0-13                        | 24732     | 28035     | 24607                     |
|     13 | 24-24-0                           | 32278     | 34943     | 33619                     |
|     14 | 24-24-0-8                         | 29700     | 32783     | 30000                     |
|     15 | 28-28-0                           | 32736     | 33262     | 30000                     |
|     16 | AmmSulphate                       | 17022     | 20555     | 20000                     |
|     17 | City Compost                      |           | 4477      |                           |
|     18 | DAP                               | 25170     | 26982     | 27000                     |
|     19 | Imported 10-26-26                 | 29153     | 29398     | 28742                     |
|     20 | Imported 12-32-16                 | 29303     | 30848     | 31557                     |
|     21 | Imported 15-15-15                 | 23200     | 29385     | 29175                     |
|     22 | Imported 15-15-15-9               | 25145     | 29111     | 29047                     |
|     23 | Imported 16-16-16                 | 24670     | 27173     | 24275                     |
|     24 | Imported 16-20-0-13               | 25000     | 28805     | 28995                     |
|     25 | Imported 17-17-17                 |           | 25000     |                           |
|     26 | Imported 20-20-0-13               | 24104     | 28701     | 26243                     |
|     27 | Imported DAP                      | 25231     | 26826     | 27000                     |
|     28 | Imported MAP                      |           | 33910     | 33973                     |
|     29 | MOP                               | 23005     | 33733     | 34685                     |
|     30 | Neem Coated Urea(45 Kg)           |           | 14700     |                           |
|     31 | SSP-Boronated                     |           | 11795     | 11612                     |
|     32 | SSP-Granular                      |           | 10825     | 10559                     |
|     33 | SSP-Powdered                      |           | 10308     | 10023                     |
|     34 | SSP-Zincated(Granular)            |           | 11513     | 11280                     |
|     35 | SSP-Zincated(Powder)              |           | 10713     | 10466                     |
|     36 | SSP-Zincated-Boronated(Granular)  |           | 13754     | 13439                     |
|     37 | TSP                               |           | 25000     | 25000                     |
|     38 | Zinc and Boron NPK 8-21-21(40 Kg) | 45050     | 44479     | 43750                     |
|     39 | Zinc and Boron NPK 9-24-24(40Kg)  | 47500     | 45552     | 44750                     |
|     40 | Zincated 10-26-26                 | 28625     |           | 30000                     |
|     41 | Zincated 20-20-0-13               | 28750     | 29073     |                           |
|     42 | Zincated NPK 14-35-14             | 33000     | 32000     | 32000                     |

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## Annexure-A