Lok Sabha Question No. 4155 (UNSTARRED), answered on 2024-12-20
Subject: Affordability of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Dr. Kirsan Namdeo

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

## LOK SABHA

UNSTARRED QUESTION NO. 4155 TO BE ANSWERED ON

## : 20.12.2024

## Affordability of Fertilizers

## 4155. DR.  KIRSAN NAMDEO:

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  DiAmmonium  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):  The  Indian  Council  of  Agricultural  Research  (ICAR)  under  All  India Coordinated Research Project on 'Long-Term Fertilizer Experiments' has assessed the  impact  of  long-term  use  of  chemical  fertilizers  in  different  soil  types  (fixed locations)  under  dominant  cropping  systems.  Investigations  carried  out  over  five decades  at  fixed  sites  have  indicated  that  there  is  no  harmful  effect  of  chemical fertilizers on soil fertility with balanced and judicious use. However, imbalanced use of chemical fertilizers coupled with low addition of organic matter over years may cause multinutrient deficiencies vis-à-vis decline in soil  health. Continuous use of nitrogenous fertilizer alone had deleterious effect on soil health and crop productivity showing deficiencies of other nutrients.  The investigation over the last few  decades indicated  that  even  in  NPK  fertilized  system,  nutritional  disorders  in terms  of  deficiency  of  micro  and  secondary  nutrients  surfaced  after  few  years affecting  soil  health  and  crop  productivity.  Highest  decline  in  crop  yield  was observed  in plot receiving only urea. In case of drip irrigation (fertigation), comparable crop yield can be obtained with less amount of water and fertilizers due to higher water and nutrient use efficiencies.

ICAR  recommends soil test based balanced and integrated nutrient management  through  conjunctive  use  of  both  inorganic  and  organic  sources (manure, biofertilizers etc.) of plant nutrients for judicious use of chemical fertilizers and to improve soil health.  The ICAR also imparts training, organises FLDs etc. to educate farmers on all these aspects.  All these measures reduce chemical fertilizer use in the country.

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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