Lok Sabha Question No. 236 (STARRED), answered on 2016-08-02
Subject: Prices of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: RAVINDRA VISHWANATH GAIKWAD

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

STARRED QUESTION NO.+* 236

TO BE ANSWERED ON

: 02.08.2016

## PRICES OF FERTILIZERS

## +* 236.   SHRI RAVINDRA VISHWANATH GAIKWAD:

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

- (a) whether  the  Government  has  given  directions  to  the  fertilizer  manufacturing private companies to bring down the prices of the fertilizers;
- (b) if so, the details thereof and the response received thereon;
- (c) whether the farmers are finding it difficult to purchase fertilizers as the private companies have not slashed the prices of non-urea fertilizers  and  if  so,  the details thereof;
- (d) the remedial steps being taken by the Government in this regard; and
- (e) whether  the  Government  is  likely  to  discontinue  the  subsidy  given  to  the private  fertilizer  manufacturing  companies  in  case  they  do  not  reduce  the prices and if so and the details thereof?

## ANSWER

MINISTER FOR CHEMICALS & FERTILIZERS AND PARLIAMENTARY AFFAIRS

(SHRI  ANANTH KUMAR)

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

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK  SABHA STARRED QUESTION NO +*236 TO BE ANSWERED ON 02.08.2016 REGARDING USE OF FERTILIZERS ASKED BY SHRI RAVINDRA VISHWANATH GAIKWAD

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(a): While approving NBS rates for 2013-14, the Cabinet also approved that in case the MRP of fertilizers are not reduced as expected and the Companies are found to be indulging in undue profiteering, the Government will review and take necessary action. In  the  light  of  above  decision  of  the  Cabinet  and  taking  into  consideration  the  falling international  prices  of  P&K  fertilizers,  the  matter  was  discussed  with  the  fertilizer Industry and they were encouraged to reflect the fall in international prices in the MRP of these fertilisers. All P&K importers and manufacturers have confirmed in writing that they have reduced the prices as indicated in para (b) below.

(b): On  an  average  the  prices  of  DAP,  MOP  and  Complex  Fertilizer  grades  have been reduced by Rs. 125/-, Rs. 250/- and Rs. 50/- per 50 Kg bag respectively.

(c) to (e):   In this regard the DoF has taken up the matter with State Governments to monitor and ensure that the farmers get the benefits of reduced price of P&K Fertilizers. It  is  also  mandatory  for  all  fertilizer  Companies  to  submit  along  with  their  claims  of subsidy,  certified  cost  data  in  the  prescribed  format  and  as  per  requirement  for determining reasonableness of MRPs  of  P&K  fertilizers fixed by the fertilizers Companies.

In  cases,  where  after  scrutiny,  unreasonableness  of  MRP  is  established  or  where  no correlation is found between the cost of production or acquisition and the MRP printed on the bags, the subsidy may be restricted or denied even if the product is otherwise eligible  for  subsidy  under  NBS. In  proven  cases of  abuse  of  subsidy  mechanism, the Department of Fertilizers will take necessary action.

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