Lok Sabha Question No. 1017 (UNSTARRED), answered on 2025-12-05
Subject: Strengthening the Supply of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri K Radhakrishnan

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1017 TO BE ANSWERED ON: 05.12.2025

## STRENGTHENING THE SUPPLY OF FERTILIZERS

## 1017:  SHRI K RADHAKRISHNAN:

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

- (a) whether  the  Government  is  aware  of  the  fact  that  farmers  from  various States across the country are facing acute shortages and price hikes of fertilizers, severely affecting agricultural production and peasants' livelihood;
- (b) if  so,  the  details  of  the  steps  taken  by  the  Government  to  ensure  timely availability  and  fair  distribution  of  fertilizers  to  farmers,  particularly  small  and marginal farmers, State-wise;
- (c) whether  the  delay  in  fertilizer  subsidy  disbursal  and  irregular  supply  has affected crop productivity and increased farmers' indebtedness, if so, the details thereof;
- (d) whether  the  Government  proposes  to  strengthen  the  supply  chain  of  the fertilizer supply chain and subsidy mechanism to avoid such crises in the future, if so, the details thereof; and
- (e) the measures being taken to protect peasants from exploitation by private fertilizer dealers and to ensure fertilizers reach farmers at the subsidized rates fixed by the Government?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

(SMT. ANUPRIYA PATEL)

- (a) to (e) The  availability  of  fertilizers  viz.  Urea,  DAP,  MOP  and  NPKS has remained adequate in the States during the ongoing Rabi 2025-26 season. Further, following steps are taken by the Government every season for ensuring timely and adequate availability of fertilizers in the country:
- (i) Before the commencement of each cropping season, Department of Agriculture and Farmers Welfare (DA&FW), in consultation with all the State Governments, assesses the State-wise & month-wise requirement of fertilizers.

(ii)  On  the  basis  of  requirement  projected  by  DA&FW,  D/o  Fertilizers  allocates adequate  quantities  of  fertilizers  to  States  by  issuing  monthly  supply  plan  and continuously monitors the availability.

(iii) The movement of all major subsidized fertilizers is monitored throughout the country by an on-line web-based monitoring system called integrated Fertilizer Monitoring System (iFMS).

(iv) The State Governments are regularly advised to coordinate with manufacturers and importers for streamlining the supplies through timely placement of indents.

(v) Regular Weekly Video Conference is conducted jointly by DA&FW and D/o Fertilizers with State  Agriculture Officials and corrective actions are taken to dispatch fertilizer as indicated by the State Governments.

## (vi) The distribution of fertilizers within the State at district level is done by the concerned State Government.

Further,  under  the  Urea  Subsidy Scheme, 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 rate.

For Phosphatic and Potassic (P&K) fertilizers , the Government has implemented Nutrient Based Subsidy Policy w.e.f. 01.04.2010. Under NBS policy, P&K fertilizers are covered under Open General License (OGL) and companies are free to import / manufacture  these  fertilizers  as  per  their  business  dynamics.  The  NBS  subsidy  is provided to manufacturer / importer on notified P&K fertilizers on its PoS sale during the season, depending on their nutrient content to ensure availability of fertilizers to farmers.  The  volatility  in  international  prices  of  key  fertilizers  and  raw  materials  is considered  while  fixing  NBS  rates  for  P&K  fertilizers  so  that  fertilizers  remain affordable to the farmers

Besides, to make DAP available at affordable price of Rs. 1,350 per 50 kg bag, special provisions like Rs. 3,500 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 NBS subsidy for Rabi 2025-26 season to keep the prices of fertilizers stable.

Further,  fertilizers  are  declared  as  an  essential  commodity  under  the  Essential Commodities  Act,  1955  and  notified  under  Fertilizer  Control  Order,  1985. State Governments are empowered to  take  action  against  persons  involved  in  blackmarketing/over-pricing,  as  per  provisions  of  EC  Act.  Any  complaints  received  at Department of Fertilizers level regarding black-marketing/over-pricing of fertilizers is sent  to  concerned  State  Government  to  take  appropriate  action  under  Essential Commodities Act, 1955 and Fertilizer Control Order, 1985.

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