Sunday 29 July 2018

d) the details of subsidies extended on fertilizers during the said period, year-wise; (e) whether the Government is planning to scale down these subsidies and if so, the details thereof;

GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
LOK SABHA
UNSTARREDQUESTION NO:1126
ANSWERED ON: 24.07.2018
National Policy on Fertilizer Supply
NARANBHAI KACHHADIA
CHANDRA PRAKASH JOSHI
Will the Minister of


CHEMICALS AND FERTILIZERSbe pleased to state:-

a) the salient features of national policy on supply of quality fertilizers to farmers;

(b) the annual requirement of fertilizers and reasons for short supply;

(c) the quantum of fertilizers imported during the last three years and the current year along with the value of such imports;

(d) the details of subsidies extended on fertilizers during the said period, year-wise;

(e) whether the Government is planning to scale down these subsidies and if so, the details thereof;

(f) whether the Government is aware of smuggling of fertilizers from India to neighboring countries and if so, the details thereof along with the measures taken to curb the same; and

(g) the measures taken/being taken by the Government to


ANSWER
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS

(RAO INDERJIT SINGH)

(a): Madam, in order to regulate the trade, price, quality and distribution of fertilizers, Government of India has declared the fertilizer as an essential commodity under the Essential Commodities Act, 1955 and has promulgated the Fertilizer (Control) Order, 1985. Specifications of fertilizers are prescribed in the said order.
The mandate of the Department of Fertilizers (DOF) is to make available fertilizers to farmers at affordable prices. The “affordable prices” part of mandate gets translated into subsidized fertilizers. The movement of all major subsidized fertilizers is being monitored throughout the country by an on-line web based monitoring system (www.urvarak.co.in) also called as Integrated Fertilizer Monitoring System (iFMS).

Urea is being provided to the farmers at a statutorily notified Maximum Retail Price (MRP). The difference between the delivered cost of fertilizers 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.

The Government is implementing Nutrient Based Subsidy (NBS) Scheme w.e.f. 1.4.2010. Under the said Scheme, a fixed amount of subsidy decided on annual basis, is provided on each grade of subsidized Phosphatic & Potassic (P&K) fertilizers of FCO standards, depending upon its Nutrient Content.

(b): The projected requirement, availability & sales of fertilizers [Urea, P&K(DAP, MOP & NPK)] in the year 2017-18 and in the current year upto June (from April’18 to June’18) are placed at ANNEXURE-A. 

(c): The year-wise quantity and value of urea imported during the last three years and the current year is placed at ANNEXURE-B1.

Import of fertilizers (other than Urea) is free, commonly known as Open General Licence (OGL). Various companies import these fertilizers as per their commercial judgment. Government does not maintain the value of these imports. The year-wise details of quantity of DAP and complex fertilizers imported during the last three years is placed at ANNEXURE-B2.

(d): The details of subsidies extended on fertilizers during the last three years and the current year upto June is placed at ANNEXURE-C:

(e): No madam, there is no such proposal.
(f): Government of India has declared fertilizer as an essential commodity under the Essential Commodities Act, 1955(ECA) and notified Fertilizer (Control) Order (FCO), 1985 & Fertilizer (Movement Control) Order, 1973 under the EC Act. State Governments have been adequately empowered to check smuggling of fertilizers. State Governments are empowered to conduct search, make seizures and take punitive action against any person violating provisions of FCO, 1985 and Essential Commodities Act, 1955. No State Government has reported smuggling of fertilizer from India to neighbouring countries.

(g): The Government of India is encouraging establishment of bio-fertilizer production units (200TP or 50,000 litre/annum) by providing 100%financial assistance to State Governments upto maximum limit of Rs. 160.00 lakhs per unit and financial assistance to farmers/individuals/private agencies @ 25% of total financial outlay (TFO) or Rs. 40 lakh, whichever is less under the Capital Investment Subsidy Scheme (CISS) through NABARD. Further, Government of India is promoting bio-fertilizer through schemes of National Mission of Sustainable Development (NMSA)/ Paramparagat Krishi Vikas Yojana (PKVY) and supported by Rashtriya Krishi Vikas Yojana (RKVY) and National Mission on Oilseeds and Oil Palm (NMOOP) and National Food Security Mission (NFSM) and Indian Council of Agriculture Research (ICAR).

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