Tuesday 24 July 2018

Shri Singh informed that the mandate of the Department of Fertilizers (DOF) is to make available fertilizers to farmers at affordable prices.

There is no shortage of any fertilizer in the country as availability is more than the sales: Shri Rao Inderjit Singh

Government of India is encouraging establishment of bio-fertilizer production units by providing financial assistance to State Governments
Minister of State for Planning (ICand Chemicals & Fertilizers, Shri Rao Inderjit Singh, in a written reply to a question on National Policy on Fertilizer Supply, in Lok Sabha today, informed that 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 (ControlOrder, 1985Specifications of fertilizers are prescribed in the said order.

Shri Singh informed that the mandate of the Department of Fertilizers (DOFis to make available fertilizers to farmers at affordable pricesThe affordable prices” part of mandate gets translated into subsidized fertilizersThe movement of all major subsidized fertilizers is being monitored throughout the country by an on-line web based monitoring system (www.urvarak.co.inalso called as Integrated Fertilizer Monitoring System (iFMS).

The Minister said that 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. Further, the Government is implementing Nutrient Based Subsidy (NBSScheme w.e.f1.4.2010Under the said Scheme, a fixed amount of subsidy decided on annual basis, is provided on each grade of subsidized Phosphatic & Potassic (P&Kfertilizers of FCO standards, depending upon its Nutrient Content.

Shri Singh provided the figures of 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 April18 to June18). It can be seen from the tables above that there is no shortage of any fertilizer as availability is more than the sales, Shri Singh said.

2017-18
<Figures in Lakh MT>


Product
      Requirement
    Availability
Sales
Urea
298.52
317.06
303.06
P&K (DAP, MOP & NPK)
229.47
226.17
212.34


(April18 to June18)
<Figures in Lakh MT>

Product
       Requirement
     Availability
Sales
Urea
66.93
82.76
64.61
P&K (DAP, MOP & NPK)
53.58
66.37
44.85


The Minister also gave details of subsidies extended on fertilizers during the last three years and the current year upto June, which are as follows:

<RsIn Crores>

Year
Indigenous
Urea
               Imported
     Urea
                Indigenous
           P&K
                   Imported
              P&K

          City
                 Compost

        2015-16
                 38,200.00
                      16,400.00
              11,969.00
                       9,968.56

-

        2016-17
                40,000.00

                11,256.59

             11,842.88

             6,999.99


           0.55

       2017-18
                    36,973.70
              9,980.00
                     14,337.00
               7,900.00
             7.26
        2018-19 up to June, 2018
                 4915.87
             3,641.12
                4,532.35
              3,705.75
           0.24

Talking about the measures taken by the Government to prevent illegal activities like smuggling of fertilizers from neighbouring countries, Shri Singh informed that Government of India has declared fertilizer as an essential commodity under the Essential Commodities Act, 1955(ECAand notified Fertilizer (ControlOrder (FCO), 1985 & Fertilizer (Movement ControlOrder, 1973 under the EC ActState 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.

The Minister also informed that Government of India is encouraging establishment of bio-fertilizer production units (200TP or 50,000 litre/annumby providing 100financial assistance to State Governments, up to maximum limit of Rs160 lakhs per unit and financial assistance to farmers/individuals/private agencies @ 25of total financial outlay (TFOor Rs40 lakh, whichever is less under the Capital Investment Subsidy Scheme (CISSthrough NABARDFurther, Government of India is promoting bio-fertilizer through schemes of National Mission of Sustainable Development (NMSA)/ Paramparagat Krishi Vikas Yojana (PKVYand supported by Rashtriya Krishi Vikas Yojana (RKVYand National Mission on Oilseeds and Oil Palm (NMOOPand National Food Security Mission (NFSMand Indian Council of Agriculture Research (ICAR), Shri Singh added.

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