Lok Sabha Question No. 3064 (UNSTARRED), answered on 2024-08-09
Subject: Affordable Fertilizers for Farmers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Dr. Byreddy Shabari

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

## LOK SABHA

## UNSTARRED QUESTION NO. 3064 TO BE ANSWERED ON : 09.08.2024

## AFFORDABLE FERTILIZERS FOR FARMERS

## 3064.  DR. BYREDDY SHABARI:

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

- (a) whether the  Government  is  taking  any  steps  to  ensure  that  fertilizers  remain affordable to the farmers in the country;
- (b) if so, the details thereof;
- (c) whether  any  scientific  study  has  been  conducted  to  assess  the  impact  of chemical fertilizer on the soil and plants; and
- (d) if so, the details thereof including the steps taken/proposed to be taken by the Government to phase out all chemical fertilizers in the country?

## ANSWER

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

(a) & (b): For Phosphatic & Potassic (P&K) fertilizers, Government has implemented Nutrient Based Subsidy (NBS) scheme w.e.f. 1.4.2010. Under NBS scheme, a fixed amount of subsidy, decided on annual/bi-annual basis, is provided on subsidized P&K fertilizers  depending  on  their  nutrient  content  including  Di-Ammonium  Phosphate (DAP). Under  this  scheme,  MRP  is  fixed  by  fertilizer  companies  as  per  market dynamics at reasonable level which is monitored by the Government. The P&K sector is a decontrolled and under the NBS scheme the companies are free to take initiatives to produce/import fertilizers as per market dynamics.

Further,  in  order  to  ensure  smooth  availability  of  DAP  at  affordable  prices  to farmers,  Government  has  provided  special  packages  on  DAP  over  and  above  the NBS subsidy rates on need basis. Recently, in 2024-25, due to geo-political situation, adversely affecting the viability of procurement of DAP by the fertilizer companies, the Government has approved One-time special package on DAP beyond the NBS rates on  actual  PoS  (Point  of  Sale)  sale  of  DAP  for  the  period  from  01.04.2024  till 31.12.2024 @ ₹ 3500 per MT to the P&K fertilizer companies to ensure sustainable availability  of  DAP  at  affordable  prices  to  the  farmers.  Further,  the  guidelines  on evaluation  of  reasonableness  of  MRPs  fixed  by  the  P&K  Fertilizer  companies  also ensure availability of fertilizers at affordable prices to farmers.

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)  and  the  MRP  has  remained unchanged since 01.03.2018 to till date. 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.

(c)  &  (d):   Indian  Council of Agricultural Research has assessed the impact of longterm  use  of  chemical  fertilizers  in  different  soil  types  under  dominant  cropping systems. The investigation over the last few decades indicated that in NPK alone system (chemical fertilizer alone), nutritional disorders in terms of deficiency  of  micro  and  secondary  nutrients  surfaced  affecting  soil  health  and  crop productivity.  Inorganic  fertilizer  +  organic  manure  at  recommended  dose  sustained crop yield and soil fertility.  Highest decline in crop yield was observed in plot receiving imbalanced  fertilization  and  only  urea. Therefore,  ICAR  is  recommending  soil  test based  balanced  and  integrated  nutrient  management  practices  through  conjunctive use of both inorganic and organic sources.

The Government has implemented 'PM Programme for Restoration, Awareness Generation, Nourishment, and Amelioration of Mother-Earth (PMPRANAM)' from June, 2023 to support the mass movement started by States/UTs to save  the  health  of  Mother  Earth  by  promoting  sustainable  and  balanced  use  of fertilizers,  adopting  alternate  fertilizers,  promoting  organic  farming  and  implementing resource  conservation  technologies.    Under  the  said  scheme,  50%  of  the  fertilizer subsidy  saved  by  a  State/UT  in  a  particular  financial  year  by  way  of  reduction  in consumption of chemical fertilizers (Urea, DAP, NPK, MOP) compared to previous 3 years' average consumption, will be passed on to that State/UT as Grant.

Further,  the  Government  has  approved  the  Market  Development  Assistance (MDA) @ Rs. 1500/MT to promote organic fertilizers, i.e. manure produced at plants under GOBARdhan initiative covering different Biogas/CBG support schemes/programmes  of  stakeholder  Ministries/Departments  such  as  Sustainable Alternative Towards  Affordable Transportation  (SATAT)  scheme  of Ministry of Petroleum  and  Natural  Gas  (MoPNG),  'Waste  to  Energy'  programme  of  Ministry  of New & Renewable Energy (MNRE), Swachh Bharat Mission (Rural) of Department of Drinking Water & Sanitation (DDWS), etc. with total outlay of Rs. 1451.84 crore (FY 2023-24  to  2025-26),  which  includes  a  corpus  of  Rs.  360  crore  for  research  gap funding, etc.

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