Lok Sabha Question No. 1965 (UNSTARRED), answered on 2024-12-06
Subject: Fertilizer prices
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Adv K. Francis George

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

## LOK SABHA

UNSTARRED QUESTION NO. 1965 TO BE ANSWERED ON : 06.12.2024

## Fertilizer Prices

## 1965. ADV  K  FRANCIS GEORGE :

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

- (a) whether the Government has taken note of the impact of rising fertilizer prices on the farming community particularly on pineapple growers in Kerala and if so, the details thereof;
- (b) whether  there  are  reasons  for  persistent  shortages  of  fertilizers  in  the  Indian market  despite  increased  indigenous  production  and  imports  and  if  so,  the details thereof; and
- (c)     whether the Government is considering reforms to reduce inefficiencies in the fertilizer distribution network to support farmers and if so, the details thereof?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (SMT. ANUPRIYA PATEL)

(a): To ensure that fertilizers are available to the farmer at affordable prices, Urea is provided  to the farmers  at a  statutorily  notified  Maximum  Retail  Price  (MRP) irrespective  of  the  cost  of  production.  The  subsidized  MRP  of  45  kg  bag  of  urea  is Rs.242 per bag (exclusive of charges towards  neem coating  and taxes  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.

In  case  of  Phosphatic  and  Potassic  (P&K)  fertilizers,  Government  has  implemented Nutrient Based Subsidy (NBS) Policy w.e.f. 1.4.2010. Under the policy, a fixed amount of subsidy, decided on annual/bi-annual basis, is provided to manufacturer / importer on  subsidized  P&K  fertilizers  depending  on  their  nutrient  content  i.e.  Nitrogen  (N), Phosphorus (P), Potassium (K) and Sulphur (S) to improve availability of fertilizers to farmers. Import of P&K fertilizers is decontrolled and  companies are free to import / produce  fertilizer  raw  materials,  intermediaries  and  finished  fertilizers  as  per  their business  dynamics.  However,  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. NBS policy is implemented on Pan India basis uniformly and no state wise differentiation is made.

The  availability  of  fertilizers  in  Kerala  during  Rabi  2024-25  has  remained adequate. The detailed availability and requirement of fertilizers in Kerala is placed at Annexure 'A'.

(b): The  availability  of  fertilizers  in  the  country  during  the  current  Rabi  2024-25 season  (upto  01.12.2024)  has  remained  comfortable.  The  details  of  availability  of fertilizers is placed at  Annexure 'B' .

(c): To ensure timely and adequate supply of fertilizers in the country, before the commencement  of  each  cropping  season,  Department  of  Agriculture  and  Farmers Welfare (DA&FW), in consultation with all the State Governments, assesses the statewise & month-wise requirement of fertilizers. On the basis of requirement projected, Department  of  Fertilizers  allocates  sufficient/  adequate  quantities  of  fertilizers  to States by issuing monthly supply plan and continuously monitors the availability. 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).  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.  The  gap  between  demand (requirement) and production of fertilizers is met through imports. The import for the season is also finalized well in advance to ensure timely availability.

However, distribution of fertilizers within the state at district level is the mandate of the State Government.

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| Annexure-A                                                                                                                                                         | Annexure-A                                                                                                                                                         | Annexure-A                                                                                                                                                         | Annexure-A                                                                                                                                                         | Annexure-A                                                                                                                                                         | Annexure-A                                                                                                                                                         | Annexure-A                                                                                                                                                         |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 1965 for answering on 06.12.2024 KERALA POSITION FOR RABI 2024-25 (UPTO 03/12/2024 ) | Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 1965 for answering on 06.12.2024 KERALA POSITION FOR RABI 2024-25 (UPTO 03/12/2024 ) | Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 1965 for answering on 06.12.2024 KERALA POSITION FOR RABI 2024-25 (UPTO 03/12/2024 ) | Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 1965 for answering on 06.12.2024 KERALA POSITION FOR RABI 2024-25 (UPTO 03/12/2024 ) | Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 1965 for answering on 06.12.2024 KERALA POSITION FOR RABI 2024-25 (UPTO 03/12/2024 ) | Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 1965 for answering on 06.12.2024 KERALA POSITION FOR RABI 2024-25 (UPTO 03/12/2024 ) | Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 1965 for answering on 06.12.2024 KERALA POSITION FOR RABI 2024-25 (UPTO 03/12/2024 ) |
|                                                                                                                                                                    |                                                                                                                                                                    | Seasonal Requirement for RABI                                                                                                                                      | Pro rata Requirement From 01/10/2024 to                                                                                                                            |                                                                                                                                                                    |                                                                                                                                                                    |                                                                                                                                                                    |
| S.NO                                                                                                                                                               | Product                                                                                                                                                            | 2024-25                                                                                                                                                            | 03/12/2024                                                                                                                                                         | Availability From 01/10/2024 to 03/12/2024                                                                                                                         | Cumulative DBT Sales From 01/10/2024 to 03/12/2024                                                                                                                 | Closing Stock as on 03/12/20 24                                                                                                                                    |
| 1                                                                                                                                                                  | UREA                                                                                                                                                               | 0.57                                                                                                                                                               | 0.26                                                                                                                                                               | 0.47                                                                                                                                                               | 0.31 0.16                                                                                                                                                          |                                                                                                                                                                    |
| 2                                                                                                                                                                  | 0.07                                                                                                                                                               |                                                                                                                                                                    | 0.02                                                                                                                                                               | 0.06 0.06                                                                                                                                                          | 0.01                                                                                                                                                               | DAP                                                                                                                                                                |
| 3                                                                                                                                                                  | MOP 0.40                                                                                                                                                           |                                                                                                                                                                    | 0.20                                                                                                                                                               | 0.45 0.24                                                                                                                                                          | 0.21                                                                                                                                                               |                                                                                                                                                                    |
| 4                                                                                                                                                                  | NPKS 0.60                                                                                                                                                          | 0.27                                                                                                                                                               | 0.53                                                                                                                                                               | 0.36                                                                                                                                                               | 0.18                                                                                                                                                               |                                                                                                                                                                    |
| 5                                                                                                                                                                  | SSP 0.02                                                                                                                                                           | 0.01                                                                                                                                                               |                                                                                                                                                                    | 0.02                                                                                                                                                               | 0.01                                                                                                                                                               | 0.01                                                                                                                                                               |

- ANNEXURE- B

| Annexure referred to in reply to part (b) of Lok Sabha Unstarred Question No. 1965 for answering on 06.12.2024   | Annexure referred to in reply to part (b) of Lok Sabha Unstarred Question No. 1965 for answering on 06.12.2024   | Annexure referred to in reply to part (b) of Lok Sabha Unstarred Question No. 1965 for answering on 06.12.2024   | Annexure referred to in reply to part (b) of Lok Sabha Unstarred Question No. 1965 for answering on 06.12.2024   | Annexure referred to in reply to part (b) of Lok Sabha Unstarred Question No. 1965 for answering on 06.12.2024   | Annexure referred to in reply to part (b) of Lok Sabha Unstarred Question No. 1965 for answering on 06.12.2024   | Annexure referred to in reply to part (b) of Lok Sabha Unstarred Question No. 1965 for answering on 06.12.2024   |
|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|
| ALL INDIA POSITION FOR RABI 2024-25 (UPTO 01/12/2024 )                                                           | ALL INDIA POSITION FOR RABI 2024-25 (UPTO 01/12/2024 )                                                           | ALL INDIA POSITION FOR RABI 2024-25 (UPTO 01/12/2024 )                                                           | ALL INDIA POSITION FOR RABI 2024-25 (UPTO 01/12/2024 )                                                           | ALL INDIA POSITION FOR RABI 2024-25 (UPTO 01/12/2024 )                                                           | ALL INDIA POSITION FOR RABI 2024-25 (UPTO 01/12/2024 )                                                           | ALL INDIA POSITION FOR RABI 2024-25 (UPTO 01/12/2024 )                                                           |
|                                                                                                                  |                                                                                                                  |                                                                                                                  |                                                                                                                  |                                                                                                                  | Fig.                                                                                                             | in LMT                                                                                                           |
| 1                                                                                                                |                                                                                                                  | 186.89                                                                                                           | 78.76                                                                                                            | 124.02                                                                                                           | 60.16                                                                                                            | UREA 63.82                                                                                                       |
| 2                                                                                                                | 52.05                                                                                                            |                                                                                                                  | 35.05                                                                                                            | 37.46                                                                                                            | 28.15                                                                                                            | DAP 9.46                                                                                                         |
| 3                                                                                                                | 11.95                                                                                                            |                                                                                                                  | 5.77                                                                                                             | 13.37                                                                                                            | 5.06 8.36                                                                                                        | MOP                                                                                                              |
| 4                                                                                                                | 77.10                                                                                                            | 37.59                                                                                                            | 57.42                                                                                                            | 33.01                                                                                                            | 25.06                                                                                                            | NPKS                                                                                                             |
| 5                                                                                                                | 36.48                                                                                                            | 19.93                                                                                                            | 31.75                                                                                                            | 12.83                                                                                                            |                                                                                                                  | SSP 19.23                                                                                                        |

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