Lok Sabha Question No. 490 (STARRED), answered on 2026-03-27
Subject: Disbursal of Fertilizer Subsidy in Tamil Nadu
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Sasikanth Senthil

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

## LOK SABHA STARRED QUESTION NO. *490 TO BE ANSWERED ON 27.03.2026

## Disbursal of Fertilizer Subsidy in Tamil Nadu

- *490. SHRI Sasikanth Senthil:

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

- (a) the total fertilizer subsidy disbursed to farmers in the State of Tamil Nadu during the last three years;
- (b) whether the Government has made any assessment regarding the impact of global price volatility on fertiliser availability, if so, the details thereof; and
- (c) the measures being taken to ensure uninterrupted supply of fertilizers to delta and Northern districts of Tamil Nadu, district-wise including Thiruvallur?

## ANSWER

MINISTER FOR CHEMICALS & FERTILIZERS AND HEALTH & FAMILY WELFARE (SHRI JAGAT PRAKASH NADDA)

- (a) to (c): A statement is laid on the table of the House.

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## STATEMENT REFERRED TO LOK SABHA STARRED QUESTION NO. 490 FOR 27.03.2026  REGARDING  'DISBURSAL  OF  FERTILIZER  SUBSIDY  IN  TAMIL NADU' TABLED BY SHRI SASIKANTH SENTHIL:

(a): Under 'DBT in Fertilizers' system, 100% subsidy on various fertilizer grades is released  to  the  fertilizer  companies,  on  actual  sales  to  the  beneficiaries  based  on Aadhar authentication through PoS devices installed at each retail shop. All farmers including  those  in  the  state  of  Tamil  Nadu  are  being  supplied  fertilizers  at  the subsidized rates on no-denial basis. The details of the total amount disbursed towards fertilizer subsidy by the Government during the last three years i.e. 2022-23 to 202425 are as follows:

| (Figures in Rs. Crore)   | (Figures in Rs. Crore)   | (Figures in Rs. Crore)   | (Figures in Rs. Crore)   | (Figures in Rs. Crore)   | (Figures in Rs. Crore)   |
|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|
| Financial Year           | Subsidy Scheme           | Subsidy Scheme           | Subsidy Scheme           | Subsidy Scheme           | Total                    |
| Financial Year           | Indigenous P&K           | Indigenous Urea          | Imported P&K             | Imported Urea            |                          |
| 2022-23                  | 50089.67                 | 127311.10                | 36032.56                 | 41365.60                 | 254798.93                |
| 2023-24                  | 36270.00                 | 102027.00                | 28929.57                 | 28193.94                 | 195420.51                |
| 2024-25                  | 34010.00                 | 103319.50                | 18800.00                 | 21000.00                 | 177129.50                |

(b): The  Government  has  implemented  Nutrient  Based  Subsidy  (NBS)  Scheme w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under NBS policy, MRP of P&K fertilizers are decontrolled and companies are free to fix MRP as per their business  dynamics  at  a  reasonable  level.  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 to ensure affordable supply of  P&K  fertilizers  to  the  farmers.  Further,  to  make  DAP  which  is  a  key  fertilizer, available at affordable price of Rs. 1350 per 50 kg bag, special provisions like Rs. 3500 per MT to cover 'Other Costs' which includes costs incurred from factory gate to farm gate, advantage / disadvantage due to increase / decrease in international prices, provision for GST component included in the MRP and provision for reasonable return @ 4% of net MRP (MRP-GST) have been extended to both imported and domestic DAP and imported TSP over and above the NBS subsidy for Kharif 2025 and Rabi 2025-26 seasons.

With regard to Urea, the Government had announced New Investment Policy (NIP)  -  2012  on  2nd  January,  2013  and  its  amendment  on  7 th   October,  2014  to facilitate fresh investment in the urea sector and to make India self-sufficient in the urea sector. Total 6 new urea units have been set up under NIP-2012 which includes 4 urea units set up through Joint Venture Companies (JVC) of nominated PSUs and 2 urea  units  set  up  by  the  private  companies.  The  units  set  up  through  JVC  are Ramagundam urea unit  of Ramagundam Fertilizers  and  Chemicals  Ltd  (RFCL)  in Telangana  and  3  urea  units  namely  Gorakhpur,  Sindri  and  Barauni  of  Hindustan Urvarak  &  Rasayan  Limited  (HURL)  in  Uttar  Pradesh,  Jharkhand  and  Bihar, respectively. The units set up by private companies are Panagarh urea unit of Matix Fertilizers and Chemicals Ltd. (Matix) in West Bengal; and Gadepan-III urea unit of

Chambal Fertilizers and Chemicals Ltd. (CFCL) in Rajasthan. Each of these units has installed  capacity of  12.7  Lakh  Metric Tonne per annum (LMTPA). These units are highly energy efficient as they are based on latest technology. Therefore, these units have  together  added  urea  production  capacity  of  76.2  LMTPA,  thereby  total indigenous urea production capacity (Reassessed Capacity, RAC) has increased from 207.54 LMTPA during 2014-15 to 283.74 LMTPA during 2023-24. Further, an exclusive policy for the revival of Talcher unit of FCIL through JVC of nominated PSUs namely Talcher Fertilizers Limited (TFL) by setting up a new Greenfield Urea plant of 12.7 LMTPA at coal gasification route has also been approved. Recently, the Union Cabinet has approved the proposal for setting up of a new Brownfield Ammonia-Urea Complex of  12.7  Lakh  Metric  Tonnes  (LMT)  annual  capacity  of  Urea  production  within  the existing  premises  of  Brahmaputra  Valley  Fertilizer  Corporation  Limited  (BVFCL), Namrup,  Assam  namely  Assam  Valley  Fertilizer  and  Chemical  Company  Ltd. (AVFCCL).

In addition, the Government also notified the New Urea Policy (NUP) - 2015 on 25thMay, 2015 for the existing 25 gas-based urea units with one of the objectives of maximizing  indigenous  urea  production  beyond  RAC.  The  NUP-2015  has  led  to additional  production of  urea by  20-25  LMT  as compared to the  production during 2014-15 annually.

Above steps together have facilitated increase of Urea production from level of 225 LMT per annum during 2014-15 to a record Urea Production at 314.07 LMT during 2023-24. During 2024-25, 306.67 LMT of Urea was produced in the country.

(c): The distribution of fertilizers within the State at the district level is carried out by the concerned State Government. The Government of Tamil Nadu has informed that continuous measures have been taken to ensure uninterrupted supply of fertilizers to the Delta and Northern districts, including Thiruvallur. The details are as follows:

- i.  The  State  is  receiving  fertilizers  as  per  the  allocation  made  by  the Government  of  India,  and  the  overall  availability  in  Tamil  Nadu  has remained higher than the assessed requirement during the Rabi 202526 season.
- ii.  Advance indents are placed and additional allocations are sought during peak seasons (Samba season) to avoid shortages in Delta districts.
- iii.  Priority allocation is given to Delta districts considering intensive paddy cultivation.
- iv.  Steps are being taken to enhance fertilizer distribution through Primary Agricultural Cooperative Credit Societies (PACCS) to ensure availability at subsidized rates.
- v.  Stocks are pre-positioned in advance through Tamil Nadu Cooperative Marketing Federation (TANFED) and Thanjavur Cooperative Marketing Federation (TCMF) to facilitate timely distribution.
- vi.  Daily monitoring of stock position is carried out at the State, district, and block levels.

- vii.  Districts, including Thiruvallur, have been instructed to maintain buffer stocks, ensure timely movement from rake points/godowns, and prevent local shortages through intra-district redistribution.
- viii.  100% sale of fertilizers through Point of Sale (PoS) devices under the Direct  Benefit Transfer  (DBT)  system  ensures  transparency  and  realtime tracking.
- ix.  The Integrated Fertilizer Management System (iFMS) is being utilized to monitor stock movement and identify potential shortages.
- x.  Continuous coordination is maintained with district officials and fertilizer companies to ensure timely movement and availability of stocks across districts.
- xi.  Stocks are pre-positioned prior to peak demand periods in both Delta and Northern districts.
- xii.  Weekly review meetings are conducted with district officials and fertilizer companies to ensure adequate availability of fertilizer stocks.

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