Lok Sabha Question No. 290 (UNSTARRED), answered on 2023-07-21
Subject: Fertilizer Subsidy
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Jugal Kishore Sharma, Ramesh Chander Kaushik, Rama Devi, Navneet Ravi Rana, Locket Chatterjee, Sunil Kumar Pintu, Riti Pathak, Ajay Kumar Mandal

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

UNSTARRED QUESTION NO.290 TO BE ANSWERED ON 21.07.2023

## Fertilizer Subsidy

290:

SHRI JUGAL KISHORE SHARMA:

SHRI RAMESH CHANDER KAUSHIK:

SHRIMATI RAMA DEVI:

SHRIMATI NAVNEET RAVI RANA:

MS. LOCKET CHATTERJEE:

SHRI SUNIL KUMAR PINTU:

SHRIMATI RITI PATHAK:

SHRI AJAY KUMAR MANDAL:

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

- (a) the  details  of  subsidies  provided  by  the  Government  for  various  fertilizers    in different States including Sonipat district in Haryana during each of the last three years and the current year, State/UT-wise, fertilizer-wise and year-wise;
- (b) whether  the  poor  and  marginalised  farmers  are  getting  the  benefits  of  said subsidy;
- (c) if so, the details thereof;
- (d) whether Government proposes to transfer the fertiliser subsidies directly into the bank accounts of the farmers through Direct Benefit Transfer (DBT); and
- (e) if  so,  the  details  thereof  along  with  the  time-frame by which  the Government is likely to take the final decision in this regard?

## ANSWER

MINISTER OF STATE FOR CHEMICALS & FERTILIZERS

## (SHRI BHAGWANTH KHUBA)

(a):   Under the 'DBT in Fertilizers' system, 100% subsidy on various fertilizer grades is released to the fertilizer companies, based on actual sales to the beneficiaries through POS devices installed at each retail shop. The details of subsidy disbursed on fertilizer for the last three years and the current year in different States including Sonipat district of Haryana is as follows:

| FINANCIAL YEAR          | Subsidy Schemes   | Subsidy Schemes   | Subsidy Schemes   | (Amount in Crores)   | (Amount in Crores)   | Grand Total   |
|-------------------------|-------------------|-------------------|-------------------|----------------------|----------------------|---------------|
| FINANCIAL YEAR          | IMPORTED P&K      | INDIGENOUS P&K    | CITY COMPOST      | INDIGENOUS UREA      | IMPORTED UREA        | Grand Total   |
| 2020-21                 | 15015.37          | 22288.36          | 68.74             | 68807.41             | 25049.62             | 131229.50     |
| 2021-22                 | 20795.74          | 31931.46          | 43.31             | 54619.72             | 50250.40             | 157640.63     |
| 2022-23                 | 36032.56          | 50089.67          | 0                 | 127311.05            | 41365.60             | 254798.88     |
| 2023-24 (as on 17.7.23) | 7593.72           | 9794.02           | 0                 | 28656.00             | 4565.31              | 50609.05      |
| Grand Total             | 79437.39          | 114103.51         | 112.05            | 279394.18            | 121230.93            | 594278.06     |

(b) & (c):   With regard to urea fertilizer, 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 subsidized rates.

In respect of P&K Fertilizers, the Government has implemented Nutrient Based Subsidy Policy w.e.f. 1.4.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under the policy, a fixed amount of subsidy, decided on annual basis, is provided on subsidised P&K fertilizers depending on their nutrient content. Under this policy, MRP is fixed by fertilizer companies as per market dynamics at reasonable level which is monitored by the Government.

Accordingly,  any  farmer  who  is  buying  these  fertilizers  is  getting  benefits  of subsidy.

(d)  &  (e):    The  Nodal  Committee  constituted  to  formulate  the  policy  relating  to implementation  of  DCT  of  fertilizer  subsidy  to  farmers  has  decided  that  the  State Governments are in the best position to identify the beneficiaries and their entitlement for quantity of fertilizers they required on the basis of field surveys, cropping pattern, soil health, irrigation status etc. On the issue of modalities of cash transfer, the Committee decided  that  if  the  entitlement  information  is  transferred  to  iFMS  (Integrated  Fertilizer Management System) through API (Application Programming Interface) to POS (Point of  Sale)  machines,  then  this  would  itself  amount  to  a  virtual  fund  transfer  and transferring any money would not be required.

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