Lok Sabha Question No. 1116 (UNSTARRED), answered on 2025-12-05
Subject: Price Stabilization Mechanism
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Lalji Verma

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1116 TO BE ANSWERED ON: 05.12.2025 PRICE STABILIZATION MECHANISM

## 1116: SHRI LALJI VERMA:

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

- (a) the  comprehensive  plan  of  the  Government  to  ensure  adequate  and  timely availability of fertilizers in the country for the upcoming Kharif and Rabi crops;
- (b) whether  the  Government  has  implemented  any  new  subsidy  policy  or  price stabilization mechanism to reduce the financial burden on farmers despite rising global prices of fertilizers, if so, the details thereof;
- (c) the steps being taken by the Government to reduce dependency on chemical fertilizers and promote organic and natural farming in the country; and
- (d) whether the Government has put in place any effective monitoring mechanism to check black marketing and hoarding of fertilizers, if so, the details thereof and the action taken under the said monitoring mechanism so far?

## ANSWER

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

## (SMT. ANUPRIYA PATEL)

- (a) 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.

(b) 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.

Further, 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.

(c) Organic farming is being promoted through Paramparagat Krishi Vikas Yojana (PKVY) in all the States/UTs except North Eastern States and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) for the North Eastern States since 2015-16. Both schemes stress on end-to-end support to farmers engaged in  organic  farming  i.e.  from  production  to  processing,  certification  and  marketing. Primary focus of the schemes is to form organic clusters, with preference to small and marginal  farmers,  to  create  a  supply  chain.  Both  the  schemes  are  implemented through States /UT Governments. Under PKVY, assistance of Rs. 31,500 per ha in 3 years  is  provided  for  promotion  of  organic  farming.  Out  of  this,  assistance  of  Rs. 15,000 per ha is provided to farmers through Direct Benefit Transfer for on- farm /off -farm organic inputs. Under MOVCDNER, assistance of

Rs. 46,500/ha in 3 years is provided for creation of Farmers Producer Organization, support to farmers for organic inputs etc. Out of this, assistance @ Rs. 32500/ ha is provided to farmers for off -farm /on -farm organic inputs under the scheme including Rs. 15,000 as Direct Benefit Transfer to the farmers.

## Achievements of PKVY Scheme since its inception (as on 31.10.2025):

-  16.90 lakh hectares of land converted to organic farming.
-  28.35 lakh farmers benefited from the scheme.
-  Since 2015-16, a total of ₹2535.74 crore (central share) has been released under PKVY Scheme (as of 31.10.2025).

## Achievements of MOVCDNER Scheme since its inception (as on 31.10.2025):

-  2.36 lakh hectares brought under organic farming.
-  2.70 lakh farmers benefited.
-  Since  2015-16, a  total  of  ₹1480.48  crore (central  share)  has  been  released under MOVCDNER scheme (as of 31.10.2025).

Besides,  Under  Market  Development  Assistance  (MDA)  Scheme,  assistance  @ Rs.1500/MT  is  being  provided  to  CBG  plants/Fertilizer  Marketing  Companies  for promotion of soil carbon enhancers, viz., Fermented Organic Manure (FOM)/Liquid Fermented  Organic  Manure  (LFOM)  and  organic  fertilizer,  viz.,  Phosphate  Rich Organic Manure (PROM) produced at plants under GOBARdhan initiative, with total outlay of Rs.1451.84 Crore (FY 2023-24 to 2025-26), which includes, a corpus of Rs. 360 Crore for research gap funding, etc.

## Following measures are taken up for promotion of FOM/LFOM/PROM:

- i. 125 KVKs collaborating with nearby CBG plants to ensure farmers' access to information  about  FOM/LFOM  and  to  facilitate  the  availability  of  FOM  for awareness and demonstration activities.
- ii. D/o  Fertilizers  entrusted  HURL  and  RCF  to  attach  Agriculture  Extension Officers with CBG/BG Plants to facilitate them with promotion of FOM/LFOM/PROM  and to resolve issues.
- iii. Conduct  farmer  trainings,  demonstrations,  and  awareness  programs  on  the benefits and application methods of organic fertilizers
- iv. Ensure availability  and  supply  of  organic  &  waste-derived  fertilizers  through marketing channels and dealer networks.
- v. Facilitate  capacity  building  by  providing  technical  guidance  to  farmers  for adopting sustainable nutrient practices.

Above initiatives of the Government are expected to address the imbalanced use of chemical fertilizers thereby reducing chemical fertilizer use.

Further,  Natural  farming is  being  promoted  through  National  Mission  on  Natural Farming (NMNF).The National Mission on Natural Farming (NMNF) was approved by the Union Cabinet on 25.11.2024 to promote Natural Farming as a mass movement across the country. The Mission has been initiated to strengthen agriculture practices with  scientifically  backed  agroecological approaches  towards  sustainability,  climate resilience and safe food. The Mission aims to reduce input cost of production to the farmers & dependence of farmers with the external markets, rejuvenate soil health & fertility, build resilience of the farm and farmers against climate risks, and provide safe, healthy & nutritious food for the farmers, their families & the consumers. The overall financial  outlay is ₹2481 crore (Central share of ₹1584 crore & States' share ₹897 crore) till 15th Finance Commission period (March 2026).

The NMNF is targeted to be implemented in 15,000 clusters to initiate Natural Farming in 7.5 Lakh Ha area and envisaged to make 1 crore farmers aware of Natural Farming. For easy availability of natural farming bio-inputs like Jeevamrit, Beejamrit, etc.,  10,000  need-based  Bio-input  Resource  Centres  envisaged  be  set  up  by practicing  natural  farming  farmers,  Primary  Agriculture  Credit  Society/  Farmer Producer Organisations, Self Help Groups, local rural entrepreneurs, Krishi Vigyan Kendras, etc. An output-based incentive of ₹4000/- per acre per year per farmer for 2 years envisaged to be provided to the farmers to practice natural farming, train more farmers, upkeep of livestock (preferably local breed of cow)/ preparation of natural farming inputs including purchase of mixing & storage containers, etc./ purchase of natural farming inputs from Bio-input Resource Centres.

## Achievements of NMNF Scheme:

-  ₹517.17 crores have been sanctioned/ released to 30 States/UTs & Central Agencies in F.Y. 2025-26 against a Budget allocation of ₹616.01 crores.

## Implementation Status of NMNF:

NMNF Scheme has been implemented in all States with 17,639 clusters have been formed covering an area of 6.35 lakh hectares. 32,220 Community Resource Persons (CRPs)  have  been  trained  through  Krishi  Vigyan  Kendras  (KVKs),  Agricultural Universities (AUs), and  Local  Natural  Farming  Institutions (LNFIs)  to  provide continuous handholding support to farmers to practise Natural Farming. So far, 15.78 lakh farmers have been enrolled under the scheme. 3,517 BRCs have been set up to easily  provide  natural  farming  bio-inputs  like  Jeevamrit,  Beejamrit,  etc.,  More  than 4,000 Scientists, Farmer Master Trainers (FMTs), and State & District officials have been trained under the Mission. Further, 806 training institutions, including 530 KVKs, 82 AUs, and 194 Local Natural Farming Institutions (LNFIs), have been identified to strengthen  capacity-building  activities.  Total  of  28.74  lakh  farmers  have  been sensitized on Natural Farming through various outreach initiatives.

Natural Farming Certification System(NFCS) has  been  initiated  as  'PGSINDIA NATURAL' for certification of all produces of natural farming in accordance with the Natural Farming Standards. It is an online certification system and

implemented  through  National  Centre  for  Organic  and  Natural  Farming(NCONF). More  than  5.0  lakhs  farmers  have  been  registered  under  the  natural  farming certification  system  till  date  with  more  than  60,000  farmers  issued  NF  certificates. Certification will enable farmers to get premium price for natural products.

(d) In order to curb black marketing and hoarding, 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, as per provisions of EC Act. Any complaints received at Department of Fertilizers level regarding black-marketing of fertilizers is sent to concerned State Government to take appropriate action under Essential Commodities Act, 1955 and Fertilizer Control Order, 1985. Accordingly, as per the information received from the States regarding enforcement measures taken by  them  against  black-marketing,  hoarding  and  other  malpractices  for  the  period 01.04.2025 to 28.11.2025 is placed at Annexure .

*******

-6-                                                           Annexure Annexure referred to in reply to part ( d) of Lok Sabha Unstarred Question No 1116 for answer on 05.12.2025.

| Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   | Cumulative Statement from April 25 to November   |
|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
| States                                           | No. of Inspections /raids                        | Black Marketing No. of                           | Black Marketing No. of                           | Black Marketing No. of                           | Hoarding                                         | Hoarding                                         | Hoarding                                         | Sub Standard                                     | Sub Standard                                     | Sub Standard                                     | Quality Diversion                                | Quality Diversion                                | Quality Diversion                                | Conviction with details*                         |                                                  |                                                  |                                                  |
| States                                           | No. of Inspections /raids                        | Show cause notice issued                         | licenses cancelled/su spended                    | FIR registered                                   | Show cause notice issued                         | No. of licenses cancelled/su spended             | FIR registered                                   | Show cause notice issued                         | No. of licenses cancelled/su spended             | FIR registered                                   | Show cause notice issued                         | No. of licenses cancelled/su spended             | FIR registered                                   | Conviction with details*                         | Show cause notice issued                         | No. of licenses cancelled/su spended             | FIR registered                                   |
| Andhra Pradesh                                   | 11181                                            | 5                                                | 3                                                | 9                                                | 10                                               | 6                                                | 3                                                | 83                                               | 0                                                | 0                                                | 7                                                | 2                                                | 3                                                | NIL                                              | 105                                              | 11                                               | 15                                               |
| ArunachalPradesh                                 | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | NIL                                              | 0                                                | 0                                                | 0                                                |
| Assam                                            | 3820                                             | 12                                               | 4                                                | 1                                                | 59                                               | 0                                                | 0                                                | 36                                               | 0                                                | 0                                                | 27                                               | 0                                                | 0                                                | NIL                                              | 134                                              | 4                                                | 1                                                |
| Bihar                                            | 15499                                            | 1035                                             | 607                                              | 77                                               | 7                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | NIL                                              | 1042                                             | 607                                              | 77                                               |
| Chhattisgarh                                     | 6172                                             | 294                                              | 13                                               | 4                                                | 29                                               | 1                                                | 0                                                | 136                                              | 5                                                | 0                                                | 24                                               | 0                                                | 0                                                | NIL                                              | 483                                              | 19                                               | 4                                                |
| Dadar & Nagar                                    | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | NIL                                              | 0                                                | 0                                                | 0                                                |
| Delhi                                            | 255                                              | 0                                                | 0                                                | 1                                                | 0                                                | 0                                                | 0                                                | 3                                                | 0                                                | 0                                                | 0                                                | 3                                                | 0                                                | NIL                                              | 3                                                | 3                                                | 1                                                |
| Goa                                              | 614                                              | 544                                              | 180                                              | 6                                                | 10                                               | 0                                                | 0                                                | 32                                               | 1                                                | 0                                                | 16                                               | 0                                                | 0                                                | NIL                                              | 602                                              | 181                                              | 6                                                |
| Gujarat                                          | 12210                                            | 33                                               | 3                                                | 1                                                | 0                                                | 0                                                | 0                                                | 83                                               | 2                                                | 0                                                | 7                                                | 3                                                | 11                                               | NIL                                              | 123                                              | 8                                                | 12                                               |
| Haryana                                          | 4693                                             | 49                                               | 5                                                | 7                                                | 18                                               | 18                                               | 4                                                | 48                                               | 10                                               | 5                                                | 13                                               | 5                                                | 6                                                | NIL                                              | 128                                              | 38                                               | 22                                               |
| Himachal Pradesh                                 | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | NIL                                              | 0                                                | 0                                                | 0                                                |
| Jammu& Kashmir                                   | 3694                                             | 142                                              | 44                                               | 2                                                | 31                                               | 2                                                | 0                                                | 55                                               | 0                                                | 0                                                | 8                                                | 0                                                | 0                                                | NIL                                              | 236                                              | 46                                               | 2                                                |
| Jharkhand                                        | 759                                              | 57                                               | 20                                               | 11                                               | 32                                               | 4                                                | 0                                                | 2                                                | 0                                                | 0                                                | 1                                                | 1                                                | 0                                                | NIL                                              | 92                                               | 25                                               | 11                                               |
| Karnataka                                        | 7093                                             | 365                                              | 22                                               | 0                                                | 243                                              | 5                                                | 0                                                | 221                                              | 14                                               | 2                                                | 84                                               | 6                                                | 6                                                | NIL                                              | 913                                              | 47                                               | 8                                                |
| Kerala                                           | 1299                                             | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 48                                               | 0                                                | 0                                                | 4                                                | 0                                                | 3                                                | NIL                                              | 52                                               | 0                                                | 3                                                |
| MadhyaPradesh                                    | 5581                                             | 0                                                | 0                                                | 72                                               | 0                                                | 0                                                | 0                                                | 606                                              | 44                                               | 4                                                | 631                                              | 160                                              | 15                                               | NIL                                              | 1237                                             | 204                                              | 91                                               |
| Maharashtra                                      | 44059                                            | 16                                               | 0                                                | 16                                               | 0                                                | 0                                                | 0                                                | 1155                                             | 1139                                             | 37                                               | 1                                                | 73                                               | 1                                                | NIL                                              | 1172                                             | 1212                                             | 54                                               |
| Manipur                                          | 3                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 1                                                | 0                                                | 0                                                | NIL                                              | 1                                                | 0                                                | 0                                                |
| Meghalaya                                        | 579                                              | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | NIL                                              | 0                                                | 0                                                | 0                                                |
| Mizoram                                          | 21                                               | 1                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 4                                                | 0                                                | 0                                                | NIL                                              | 5                                                | 0                                                | 0                                                |
| Nagaland                                         | 72                                               | 14                                               | 0                                                | 14                                               | 0                                                | 0                                                | 0                                                | 101                                              | 0                                                | 0                                                | 2                                                | 64                                               | 1                                                | NIL                                              | 117                                              | 64                                               | 15                                               |
| Odisha                                           | 7031                                             | 4                                                | 3                                                | 2                                                | 0                                                | 0                                                | 0                                                | 47                                               | 1                                                | 0                                                | 1966                                             | 107                                              | 3                                                | NIL                                              | 2017                                             | 111                                              | 5                                                |
| Puducherry                                       | 39                                               | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                |                                                  | 0                                                | 0                                                |
| Punjab                                           | 5617                                             | 37                                               | 1                                                | 1                                                | 20                                               | 0                                                | 1                                                | 192                                              | 65                                               | 3                                                | 0                                                | 0                                                | 4                                                | NIL NIL                                          | 249                                              | 66                                               | 9                                                |
| Rajasthan Tamilnadu                              | 11505 18805                                      | 589 13                                           | 76                                               | 46                                               | 45 6                                             | 17                                               | 30                                               | 451 33                                           | 1                                                | 2                                                | 15                                               | 16                                               | 25 1                                             | NIL NIL                                          | 1100                                             | 110 50                                           | 103 5                                            |
|                                                  |                                                  |                                                  | 9                                                | 3                                                |                                                  | 8                                                | 0                                                |                                                  | 25                                               | 0                                                | 112                                              | 17                                               |                                                  |                                                  | 92                                               |                                                  |                                                  |
| Telangana                                        | 115321                                           | 5                                                | 0                                                | 4                                                | 4                                                | 2                                                | 0                                                | 79                                               | 0                                                | 0                                                | 4                                                | 0                                                | 5                                                | NIL                                              | 164                                              | 11                                               | 8                                                |
| Tripura                                          | 694                                              | 0                                                |                                                  | 0                                                | 9                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | NIL                                              | 9                                                | 0                                                | 0                                                |
| Uttar Pradesh                                    |                                                  |                                                  | 0                                                |                                                  | 164                                              |                                                  |                                                  | 141                                              | 130                                              | 12                                               |                                                  | 7                                                | 12                                               | 3                                                | 2436                                             | 3018                                             | 197                                              |
|                                                  | 29401                                            | 2043                                             | 2742                                             | 165                                              |                                                  | 139                                              | 8                                                |                                                  |                                                  |                                                  | 88                                               |                                                  |                                                  |                                                  |                                                  |                                                  |                                                  |
| Uttarakhand                                      | 282                                              | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 43                                               | 0                                                | 0                                                | NIL                                              | 43                                               | 0                                                | 0                                                |
| West Bengal Total                                | 33777 340076                                     | 0 5258                                           | 0 3732                                           | 0 442                                            | 0 687                                            | 0 202                                            | 0 46                                             | 259 3811                                         | 0 1437                                           | 0 65                                             | 0 3058                                           | 0 464                                            | 0 96                                             | NIL                                              | 259 3 12814                                      | 0 5835                                           | 0 649                                            |

Above data has been compiled as reported by states