Lok Sabha Question No. 853 (UNSTARRED), answered on 2024-11-29
Subject: Measure for Stabilizing Fertilizer Prices
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri E T Mohammed Basheer

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

## LOK SABHA

## UNSTARRED QUESTION NO. 853 TO BE ANSWERED ON : 29.11.2024

## Measure For Stabilizing Fertilizer Prices

## 853. SHRI  E T MOHAMMED BASHEER:

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

- (a) the  measures  taken/proposed  to  be  taken  to  stabilize  fertilizer  prices  to prevent them from affecting the income of farmers;
- (b) whether  there  is  any  revisions  planned  for  the  subsidy  schemes  on fertilizers, especially for small and marginal farmers; and
- (c) whether the Government is considering any plan to ensure that subsidies are efficiently reaching the intended beneficiaries and if so, the details thereof?

## ANSWER

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

(a): 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.  Accordingly,  all  farmers  are being supplied urea at the subsidized rates.

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.  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. In addition, in order to ensure smooth availability  of  fertilizers  at  affordable  prices  to  farmers,  Government  has  provided special packages on DAP over and above the NBS subsidy rates on need basis so that  Maximum  Retail  Price  (MRP)  of  the  fertilizers  remains  stable  and  market volatility  are  subsumed.  In  2024-25,  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 with approximate financial implication of ₹2625 crores to ensure sustainable availability of DAP at affordable prices to the farmers and support the agriculture sector and related activities and strengthen food security scenario in the country. Thus, the entire subsidy scheme is focused towards timely availability of fertilizers at affordable prices to farmers.

(b): No.

(c): Under the fertilizer  Direct  Benefit  Transfer  (DBT)  system,  100%  subsidy  is released  to  the  fertilizers  companies  on  the  basis  of  actual  sales  made  by  the retailers  to  the  beneficiaries.  To  ensure  that  the  subsidy  reaches  the  intended beneficiary, under DBT, sale of all subsidized fertilizers to farmers/ buyers is made through  Point  of  Sale  (PoS)  devices  installed  at  each  retailer  shop  and  the beneficiaries are identified through Aadhaar Card, KCC, Voter Identity Card etc.

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