Lok Sabha Question No. 956 (UNSTARRED), answered on 2025-12-05
Subject: Supply of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Atul Garg, Shri Rajesh Verma, Dr. Lata Wankhede, Smt. Shambhavi

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

## LOK SABHA

## UNSTARRED QUESTION NO.956 TO BE ANSWERED ON 05.12.2025

## Supply of Fertilizers

## 956. Shri Atul Garg:

Shri Rajesh Verma:

- Dr. Lata Wankhede:
- Smt. Shambhavi:
- Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state: (a) the  total  subsidy  provided  under  the  Nutrient-Based  Subsidy  (NBS)  Scheme  for fertilizers  during  the  last  three  financial  years,  with  specific  details  regarding  the share allocated to Uttar Pradesh, year-wise; (b) the  measures  being  taken  by  the  Government  to  ensure  the  availability,  timely supply,  and  affordability  of  fertilizers  for  farmers  in  Uttar  Pradesh,  particularly  in drought-prone and agrarian regions including steps to streamline supply chains and prevent hoarding or price inflation, district-wise; and whether any cases of irregularities, mismanagement or fraudulent subsidy claims related to fertilizer distribution have been reported in Uttar Pradesh and if so, the details of such cases along with the corrective and punitive actions taken by the

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SMT. ANUPRIYA PATEL)

(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 are being supplied fertilizers at subsidized rates on no-denial basis. The year-wise details of fertilizer  subsidy  provided  by  Government  under  the  Nutrient  Based  Subsidy  (NBS) Scheme during the last three financial years are as follows:

- (c) Government to address them?

(Rs. in crore)

| Financial Year   |   Imported P&K |   Indigenous P&K |   Grand Total |
|------------------|----------------|------------------|---------------|
| 2022-23          |        36032.6 |          50089.7 |       86122.2 |
| 2023-24          |        28929.6 |          36270   |       65199.6 |
| 2024-25          |        18800   |          34010   |       52810   |
| Grand Total      |        83762.1 |         120370   |      204132   |

(b): Following  steps  are  taken  by  the  Government  before  every  season  to  ensure adequate and timely availability of fertilizers across the country including the State of Uttar Pradesh:

- (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 fertilizers as indicated by the State Governments.
- (vi)  Distribution of fertilizers within the State at district/block/village level is done by the concerned State Government.

With  regard  to  price  control,  the  Government  has  implemented  Nutrient  Based Subsidy Policy w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers.  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

-3- 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.  NBS  scheme  is  implemented  on  pan-India  basis including the State of Uttar Pradesh and no regional differentiation is made. Moreover, to make DAP 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 NBS subsidy for Rabi  2025-26 season to keep the prices of fertilizers stable.

To  ensure  streamlined  supply  chains  and  prevent  hoarding  or  price  inflation, 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 black-marketing, hoarding and overpricing,  as  per  provisions  of  EC  Act.  Any  complaints  received  at  Department  of Fertilizers  level  regarding  black-marketing,  hoarding  and  overpricing  of  fertilizers  are forwarded to the concerned State Government to take appropriate action under Essential Commodities Act, 1955 and Fertilizer Control Order, 1985.

(c): No cases of fraudulent subsidy claims have been reported. However, to curb other irregularities such as black-marketing, hoarding, and distribution related malpractices, the State Government has undertaken various enforcement measures. These include the issuance  of  2436  show-cause  notices,  suspension/cancellation  of  3018  licenses,  and registration  of  197  FIRs  in  Uttar  Pradesh  during  the  current  financial  year  (up  to 28.11.2025).

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