Lok Sabha Question No. 5635 (UNSTARRED), answered on 2025-04-04
Subject: Outstanding Amount of Subsidy
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Malvinder Singh Kang

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

UNSTARRED QUESTION NO. 5635 TO BE ANSWERED ON: 04.04.2025

## Outstanding amount of subsidy

## 5635.  SHRI  MALVINDER SINGH KANG:

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

- (a) the  accumulated  outstanding  amount  of  subsidy  payable  to  individual fertilizer industries at the end of 2024;
- (b) the reasons for accumulation of the outstanding amount;
- (c) the overall effect thereof on the performance of fertilizer industries; and
- (d) the steps taken for improving the situation?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (SMT. ANUPRIYA PATEL)

- (a):      The  subsidy  provided  by  the  Government for fertilizers in the  year  2024-25 under various schemes, namely Import of Urea, Indigenous Urea (including MDA), Imported P&K, and Indigenous P&K is Rs. 21,000 Crore, Rs. 1,03,335.5 Crore, Rs. 18,800  Crore,  and  Rs.  34,010  Crore.  The  details  of  accumulated  outstanding amount of subsidy payable to individual fertilizer industries under various schemes at the end of 2024 was as under:
- (b)  &  (c):  The Government  provides  subsidy  to  ensure  adequate  availability  of fertilizers  at  affordable  prices  to  the  farmers.  Under  'DBT  in  Fertilizers'  system, 100% subsidy on various fertilizer grades is released to the fertilizer companies, on

| Sl. No.   | Fertilizer Industry/Scheme   |   Pending claim as on 31.12.2024 (in Rs. Crores) |
|-----------|------------------------------|--------------------------------------------------|
| 1         | Import of Urea               |                                           443.13 |
| 2         | Indigenous Urea              |                                             0    |
| 3         | Imported P&K                 |                                          2563.62 |
| 4         | Indigenous P&K               |                                          2794.2  |
|           | Total                        |                                          5800.95 |

actual  sales  to  the  beneficiaries  based  on  Aadhar  authentication  through  POS devices  installed  at  each  retail  shop.  The  subsidy  payable  to  individual  fertilizer companies  under  the  various  subsidy  schemes  of  Department  of  Fertilizers  is disbursed through an online system. All the Fertilizer sale transactions are captured online in the Integrated Fertilizer Management System (iFMS) system on real time basis. The claims are processed on a weekly basis and the amount of subsidy is remitted  to  the  company's  bank  account  through  electronic  mode  based  on  the actual  sales  made  through  PoS  machines.  The  payment  of  bills  is  processed  on 'First in First out (FIFO)' principle in the sequence of the receipt of same based on duly  completed  bills  received  in  the  Department,  which  is  a  dynamic  process. Further,  claims  raised  by  the  companies  are  also  sent  back  for  corrections  and modifications  following  laid  down  provisions  resulting  in  accumulation  of  pending claims.  The  Department  is  responsible  for  payment  of  bills  only  when  bills,  duly completed  in  all  respects,  are  generated  by  the  Fertilizer  companies  and  not  for incomplete claims.

(d):      Whenever  any  shortage  of  funds  is  noticed,  the  Department  immediately makes all the possible efforts to get additional funds under supplementary grants or revised estimates as per procedure.

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