Lok Sabha Question No. 878 (UNSTARRED), answered on 2024-07-26
Subject: Fertilizer Subsidy to Farmers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Dr. K Sudhakar

878:

## GOVERNMENT OF INDIA DEPARTMENT OF FERTILIZERS

## MINISTRY OF CHEMICALS AND FERTILIZERS LOK SABHA

## UNSTARRED QUESTION NO.878 TO BE ANSWERED ON 26.07.2024

## FERTILIZER SUBSIDY TO FARMERS

DR. K SUDHAKAR:

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

- (a) whether the Government has any data regarding the fertilizer subsidy provided to the farmers during the period 2004-14 and 2014-24, if so, the details thereof;
- (b) whether any international agreements restrict fertilizer subsidy to farmers, if so, the details thereof;
- (c) whether the Government has any data regarding the performance of the Indian fertilizer industry, if so, the details thereof;
- (d) whether any inflation has been observed in the rate of fertilizers in the country;
- (e) if  so,  the  details  thereof  along  with  the  steps  taken/proposed  to  be  taken  to keep the fertilizer prices under check; and
- (f) whether  the  Government  has  any  data  regarding  the  fertilizer  prices  across various States of the country and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SMT. ANUPRIYA PATEL)

- (a): The Government provides subsidy to ensure adequate availability of fertilizers at affordable prices to the farmers. Under 'DBT in Fertilizers' system, 100% subsidy on various fertilizer grades is released to the fertilizer companies, on actual sales to the beneficiaries based on Aadhar authentication through POS devices installed at each retail shop. As per records available, the details of subsidy provided for fertilizers from 2010-11 to 2024-25 (as on 22.07.2024) is available and is as below:

| Year    |   Amount (in Crores) |
|---------|----------------------|
| 2010-11 |              65836.7 |
| 2011-12 |              74569.8 |
| 2012-13 |              70592.1 |
| 2013-14 |              71280.2 |
| 2014-15 |              75067.3 |

| 2015-16                  |   76537.56 |
|--------------------------|------------|
| 2016-17                  |    70100   |
| 2017-18                  |    69198   |
| 2018-19                  |    73435.2 |
| 2019-20                  |    83466.5 |
| 2020-21                  |   131230   |
| 2021-22                  |   157640   |
| 2022-23                  |   254799   |
| 2023-24                  |   195421   |
| 2024-25 (as on 22.07.24) |    36993.4 |

(b):     No.

(c): Data regarding the performance of the Indian  fertilizer  industry  in  the  country during 2010-11 to 2023-24 is as below:

| Year-wise production of Fertilizers (Fig. in LMT)   | Year-wise production of Fertilizers (Fig. in LMT)   |
|-----------------------------------------------------|-----------------------------------------------------|
| Year                                                | Total Fertilizer Production                         |
| 2010-11                                             | 376.25                                              |
| 2011-12                                             | 387.78                                              |
| 2012-13                                             | 374.94                                              |
| 2013-14                                             | 380.46                                              |
| 2014-15                                             | 385.39                                              |
| 2016-17                                             | 414.41                                              |
| 2017-18                                             | 413.61                                              |
| 2018-19                                             | 413.85                                              |
| 2020-21                                             | 433.68                                              |
| 2021-22                                             | 435.95                                              |
| 2022-23                                             | 485.29                                              |
| 2023-24                                             | 503.35                                              |

(d)  to  (f): Urea  is  provided  to  the  farmers  at  a  statutorily  notified  Maximum  Retail Price (MRP). The MRP of 45kg 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  supplied  urea  at  the  subsidized  rate.  The  MRP  of  Urea  is  applicable uniformly across various States of the country.

Further,  the  Government  has  implemented  Nutrient  Based  Subsidy  (NBS) 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  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) regime, the average  MRP  has  remained  more  or  less  same  across  the  States  in  the  country during  past  few  years.  The  grade-wise  average  MRP  of  50  Kg  bag  of  majorly consumed P&K fertilizers notified under NBS 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                             |
| 1        | DAP (18-46-0-0)        | 1250.20                             | 1347.00                             | 1349.68                             |
| 2        | MOP (0-0-60-0)         | 1166.90                             | 1707.40                             | 1667.86                             |
| 3        | SSP (0-16-0-11)        | 354.75                              | 501.80                              | 626.60                              |
| 4        | NPK 10-26-26           | 1487.55                             | 1488.05                             | 1470.71                             |
| 5        | NPK 12-32-16           | 1436.65                             | 1578.10                             | 1471.98                             |
| 6        | NPK 20-20-0-13         | 1232.65                             | 1402.30                             | 1274.70                             |

Data  regarding  selling  price  of  the  majorly  consumed  P&K  fertilizer  across  various States of the country over the last year is enclosed at Annexure.

*********

## Annexure referred to in reply of part (d) to (f) of Lok Sabha Unstarred Questin No. 878 for answering on 26.07.2024

Annexure State-wise Average Selling Price of DAP, MOP,SSP,10-26-26 ,12-32-16 & 20-20-0-13 during 2023-24

* Average Selling Price of 50 Kg Bag (in Rs.)

| State                       | NPK 10-26-26   | NPK 12-32-16   | NPK 20-20-0-13   | DAP (18-46-0-0)   | MOP (0-0-60-0)   | SSP (0-16-0-11)   |
|-----------------------------|----------------|----------------|------------------|-------------------|------------------|-------------------|
| Andhra Pradesh              | 1442.88        | 1440.86        | 1158.62          | 1332.30           | 1652.63          | 491.08            |
| Assam                       | 1443.45        | N.A.           | 1276.03          | 1331.72           | 1658.98          | 615.16            |
| Bihar                       | 1427.70        | 1448.14        | 1246.49          | 1336.58           | 1661.16          | 597.04            |
| Chhattisgarh                | 1466.80        | 1449.83        | 1207.19          | 1337.40           | 1672.10          | 469.12            |
| Gujarat                     | 1462.04        | 1443.55        | 1224.38          | 1329.24           | 1654.11          | 542.24            |
| Haryana                     | N.A.           | 1421.18        | 1223.20          | 1333.38           | 1640.82          | 434.53            |
| Himachal Pradesh            | N.A.           | 1422.13        | N.A.             | 1293.91           | 1664.12          | 748.41            |
| Jharkhand                   | 1430.53        | 1316.21        | 1257.30          | 1331.58           | 1617.91          | 548.56            |
| Karnataka                   | 1445.79        | 1448.48        | 1197.98          | 1333.15           | 1668.89          | 526.57            |
| Kerala                      | 1450.28        | N.A.           | 1218.29          | 1314.53           | 1659.09          | 569.07            |
| Madhya Pradesh              | 1453.27        | 1450.60        | 1210.21          | 1335.26           | 1654.74          | 433.99            |
| Maharashtra                 | 1459.35        | 1455.69        | 1229.37          | 1338.81           | 1673.03          | 533.98            |
| Manipur                     | N.A.           | N.A.           | 1368.59          | 1347.20           | 1710.93          | 642.24            |
| Odisha                      | 1448.31        | N.A.           | 1214.90          | 1336.14           | 1670.70          | 449.97            |
| Puducherry                  | 1430.18        | N.A.           | 1176.53          | 1339.15           | 1668.24          | 547.17            |
| Punjab                      | 1339.90        | 1429.94        | 1252.36          | 1324.50           | 1646.26          | 455.20            |
| Rajasthan                   | 1431.91        | 1439.85        | 1226.38          | 1337.86           | 1634.56          | 421.62            |
| Tamil Nadu                  | 1446.12        | 1428.23        | 1207.32          | 1331.26           | 1661.24          | 531.66            |
| Telangana                   | 1440.93        | 1445.06        | 1155.20          | 1329.09           | 1645.28          | 518.37            |
| Tripura                     | 1396.62        | N.A.           | 1385.04          | 1304.13           | 1484.04          | 563.10            |
| Uttarakhand                 | N.A.           | 1457.50        | 1242.09          | 1335.57           | 1676.66          | 553.62            |
| Uttar Pradesh               | 1450.64        | 1456.69        | 1221.74          | 1335.63           | 1641.65          | 528.14            |
| West Bengal                 | 1411.99        | 1079.33        | 1208.59          | 1283.84           | 1569.02          | 540.06            |
| Meghalaya                   | N.A.           | N.A.           | N.A.             | N.A.              | N.A.             | 609.57            |
| Mizoram                     | N.A.           | N.A.           | N.A.             | 1350.00           | 1700.00          | 550.00            |
| Jammu and Kashmir           | N.A.           | N.A.           | N.A.             | 1332.25           | 1665.17          | 746.83            |
| Andaman and Nicobar Islands | N.A.           | N.A.           | N.A.             | 931.34            | 627.71           | N.A.              |
| Delhi                       | N.A.           | N.A.           | N.A.             | 1333.49           | 1484.00          | N.A.              |
| Goa                         | 1446.25        | 1418.94        | 1265.20          | 1306.38           | 1639.36          | N.A.              |
| Nagaland                    | N.A.           | N.A.           | N.A.             | 1291.93           | 1700.00          | N.A.              |
| Dadra and Nagar Haveli      | N.A.           | N.A.           | 1245.78          | 1350.00           | N.A.             | N.A.              |
| Arunachal Pradesh           | N.A.           | N.A.           | N.A.             | 1300.00           | 170.00           | N.A.              |

*******