Lok Sabha Question No. 3703 (UNSTARRED), answered on 2023-08-11
Subject: Price of Urea and DAP
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Vellalath Kochukrishnan Nair. Sreekandan

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

## LOK SABHA

## UNSTARRED QUESTION NO. 3703 TO BE ANSWERED ON 11.08.2023

## Price of Urea and DAP

## 3703:  SHRI  V.K. SREEKANDAN:

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

- (a) whether it is a fact that the Government has ensured that the price of urea and di-ammonium phosphate would remain unchanged during the cropping season;
- (b) if so, the details thereof;
- (c) whether it is true that fertilizer prices continue to remain high due to global factors; and
- (d) if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR CHEMICALS & FERTILIZERS

## (SHRI BHAGWANTH KHUBA)

(a)  & (b):    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). 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.

Further,  Government  has  implemented  Nutrient  Based  Subsidy  Policy  w.e.f. 01.04.2010. Under NBS Policy P&K Fertilizer Companies are free to fix MRPs as per the market dynamics.  Government has also approved revision of rates under Nutrient Based Subsidy Scheme for Rabi 2022-23 and fresh rates for Kharif 2023. Accordingly, the subsidy rates are as under:

|   S. No. | Nutrients   |   Revised NBS rates for Rabi 2022-23 (Rs. Per Kg of Nutrient) (from 01.01.2023 to 31.3.2023) |   NBS rates for Kharif 2023 (Rs. Per kg of nutrient) (from 01.04.2023 to 30.09.2023) |
|----------|-------------|----------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|
|        1 | N           |                                                                                        99.27 |                                                                                76.49 |
|        2 | P           |                                                                                        49.94 |                                                                                41.03 |
|        3 | K           |                                                                                        25.7  |                                                                                15.91 |
|        4 | S           |                                                                                         2.84 |                                                                                 2.8  |

-2-

As  per  iFMS,  the  price  of  DAP  during  Rabi  2022-23  and  Kharif  2023-24  is  Rs 27000/MT and Rs. 27000/MT respectively.

(c)  &  (d): International  prices  of  fertilizers  as  per  Fertilizer  Monthly  Bulletin  from January, 2021 to June, 2023 is given as Annexure.

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## Annexure

## Trend in International prices of fertilizers (in USD/MT) Jan 2021 to Dec 2021

| Month    |   Urea (FOB) |   DAP (CFR) |   MOP (CFR) |   Phos. Acid (CFR) |   Rock Phos. (CFR) |   Ammonia (CFR) |   Sulphur (CFR) |
|----------|--------------|-------------|-------------|--------------------|--------------------|-----------------|-----------------|
| Jan, 21  |          286 |         404 |         230 |                689 |                103 |             285 |             134 |
| Feb, 21  |          330 |         443 |         247 |                795 |                 84 |             330 |             188 |
| Mar, 21  |          376 |         504 |         247 |                795 |                104 |             470 |             228 |
| Apr, 21  |          380 |         555 |         273 |                876 |                124 |             545 |             220 |
| May, 21  |          372 |         565 |         280 |                998 |                123 |             543 |             216 |
| June, 21 |          413 |         580 |         280 |                998 |                131 |             548 |             226 |
| July, 21 |          507 |         615 |         280 |               1128 |                144 |             585 |             221 |
| Aug, 21  |          513 |         641 |         280 |               1160 |                144 |             625 |             214 |
| Sept, 21 |          513 |         730 |         280 |               1160 |                144 |             625 |             234 |
| Oct, 21  |          690 |         682 |         280 |               1160 |                144 |             665 |             263 |
| Nov, 21  |          923 |         804 |         280 |               1330 |                144 |             825 |             277 |
| Dec, 21  |          990 |         898 |         445 |               1330 |                144 |             990 |             308 |

Jan 22 to Dec 22

| Month    |   Urea (FOB) |   DAP (CFR) |   MOP (CFR) |   Phos. Acid (CFR) |   Rock Phos. (CFR) |   Ammonia (CFR) |   Sulphur (CFR) |
|----------|--------------|-------------|-------------|--------------------|--------------------|-----------------|-----------------|
| Jan, 22  |          897 |         921 |         445 |               1330 |                144 |            1125 |             339 |
| Feb, 22  |          672 |         920 |         518 |               1330 |                160 |            1135 |             344 |
| Mar, 22  |          596 |         924 |         590 |               1530 |                207 |            1233 |             419 |
| Apr, 22  |          631 |         924 |         590 |               1530 |                284 |            1575 |             492 |
| May, 22  |          722 |         936 |         590 |               1530 |                259 |            1319 |             516 |
| June, 22 |          691 |         920 |         590 |               1530 |                284 |            1000 |             494 |
| July, 22 |          549 |         945 |         590 |               1715 |                284 |             960 |             279 |
| Aug, 22  |          593 |         891 |         590 |               1715 |                284 |            1100 |             103 |
| Sept, 22 |          661 |         758 |         590 |               1715 |                287 |            1156 |             126 |
| Oct, 22  |          665 |         722 |         590 |               1355 |                305 |            1175 |             149 |
| Nov, 22  |          614 |         743 |         590 |               1175 |                305 |            1150 |             183 |
| Dec, 22  |          576 |         723 |         590 |               1175 |                257 |            1120 |             198 |

Jan 2023 to June 2023

| Month    |   Urea (FOB) |   DAP (CFR) |   MOP (CFR) |   Phos. Acid (CFR) |   Rock Phos. (CFR) |   Ammonia (CFR) |   Sulphur (CFR) |
|----------|--------------|-------------|-------------|--------------------|--------------------|-----------------|-----------------|
| Jan, 23  |          500 |         679 |         590 |               1175 |                242 |             929 |             161 |
| Feb, 23  |          475 |         655 |         590 |               1050 |                242 |             790 |             147 |
| Mar, 23  |          361 |         609 |         590 |               1050 |                231 |             559 |             151 |
| Apr, 23  |          332 |         557 |         422 |               1050 |                215 |             421 |             122 |
| May, 23  |          332 |         514 |         422 |                990 |                215 |             370 |             107 |
| June, 23 |          302 |         468 |         422 |                970 |                210 |             329 |              95 |

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