This document summarizes the Indian government's fertilizer subsidy program, addressing Lok Sabha Unstarred Question No. 3369, answered on August 8, 2025, by the Minister of State in the Ministry of Chemicals and Fertilizers, Smt. Anupriya Patel. The response details the fertilizer subsidy accounting for financial years 2022-23 and 2023-24, covering urea and non-urea (P&K) fertilizers.
**Key Financial Data (in Crores):**
| Financial Year | Subsidy Scheme | Budget Estimates (BE) | Revised Estimates (RE) | Actual Expenditure |
|---|---|---|---|---|
| 2022-23 | Urea Subsidy | 67186.78 | 168676.70 | 168676.70 |
| 2022-23 | Nutrient Based Subsidy (P&K) | 42000.00 | 86122.23 | 86122.23 |
| 2023-24 | Urea Subsidy | 135063.18 | 130221.00 | 130220.94 |
| 2023-24 | Nutrient Based Subsidy (P&K) | 44000.00 | 65200.00 | 65199.57 |
**Fertilizer Supply vs. Requirement (in LMTs):**
| Year | Fertilizer | Requirement | Availability |
|---|---|---|---|
| 2022-23 | Urea | 359.19 | 415.82 |
| 2022-23 | DAP | 114.2 | 130.93 |
| 2022-23 | MOP | 34.17 | 19.55 |
| 2022-23 | NPKS | 120.69 | 138.15 |
| 2023-24 | Urea | 356.08 | 437.47 |
| 2023-24 | DAP | 110.18 | 127.42 |
| 2023-24 | MOP | 27.62 | 22.74 |
| 2023-24 | NPKS | 126.31 | 156.51 |
**Unspent Funds and Pending Reimbursements:**
In FY 2023-24, Rs. 6 lakhs remained unspent under the Urea Subsidy Scheme and Rs. 43 lakhs under the NBS (P&K) Scheme due to the absence of admissible claims at the time of settlement. As of the date of the response, no fertilizer subsidy claims submitted during FY 2022-23 and 2023-24 are pending with the Department of Fertilizers.
**Action Against Diversion/Black Marketing:**
Fertilizers are classified as essential commodities under the Fertilizer Control Order (FCO), 1985. State governments are empowered to prevent black marketing and diversion, and to take punitive action against offenders.
Key Entities Referenced
Ministry of Chemicals and Fertilizers: A ministry in the Government of India responsible for the chemical and fertilizer industries.
Department of Fertilizers: A department under the Ministry of Chemicals and Fertilizers, Government of India.
Direct Benefit Transfer (DBT): A scheme for transferring subsidies directly to beneficiaries.
Nutrient Based Subsidy (NBS): A subsidy scheme for phosphatic and potassic (P&K) fertilizers.
Urea: A nitrogen-based fertilizer that is heavily subsidized.
Fertilizer Control Order, 1985: An order empowering State governments to prevent black marketing and diversion of fertilizers.
Financial Year 2022-23: Relevant financial year for the subsidy data
Financial Year 2023-24: Relevant financial year for the subsidy data
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO.3369 TO BE ANSWERED ON 08.08.2025
Fertilizer Subsidy Accounting
3369. MS. PRANITI SUSHILKUMAR SHINDE:
ADV DEAN KURIAKOSE:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) the total subsidy outlays (BE/RE) and actual expenditure, broken down by urea and non- urea
(P&K) fertilizers for financial years 2022–23 and 2023-24, year-wise;
(b) the quantity of fertilizers (N, P, K components) supplied under subsidy schemes, Direct
Benefit Transfer (DBT) or Nutrient Based Subsidy (NBS) compared to the estimated targets
for each year, year-wise;
(c) the details and reasons for unspent subsidy funds and pending reimbursements to
manufacturers/importers; and
(d) the action taken by the Government to prevent diversion or black‐marketing of subsidized
fertilizers?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a): The details of the Budget Estimates (BE), Revised Estimates (RE), and Actual
Expenditure on fertilizer subsidy for urea and non-urea (P&K) fertilizers for the financial years
2022–23 and 2023–24 are as follows:-2-
(Amount in Crores)
Financial Budget Final Revised Actual
Subsidy Scheme
Year Estimates (BE) Estimates (RE) Expenditure
Urea Subsidy 67186.78 168676.70 168676.70
2022–23
Nutrient Base
42000.00 86122.23 86122.23
Subsidy (P&K)
Urea Subsidy 135063.18 130221.00 130220.94
2023–24
Nutrient Base
44000.00 65200.00 65199.57
Subsidy (P&K)
(b): Details of total quantity of fertilizers (N, P, K components) supplied and total
requirement for the year 2022-23 and 2023-24 are as under:
(Quantity in LMTs)
Year UREA DAP MOP NPKS
Require Availab Require Availab Require Availab Require Availab
ment ility ment ility ment ility ment ility
2022-23 359.19 415.82 114.2 130.93 34.17 19.55 120.69 138.15
2023-24 356.08 437.47 110.18 127.42 27.62 22.74 126.31 156.51
(c): The fertilizer subsidy claims are settled subject to availability of funds. During the
financial year 2023–24, an amount of Rs.6 lakhs (0.00005%) under Urea subsidy Scheme
and Rs.43 lakhs (0.00066%) under NBS(P&K) Scheme remained unspent as at the time of
settlement, no admissible claim was available for an amount equal to or less than the funds
remaining at the end of financial year 2023-24. Consequently, the available funds could not
be utilised at that stage and remained unspent.
As on date, no fertilizer subsidy claims submitted during the financial years 2022–23
and 2023–24 are pending in the Department of Fertilizers.
(d): Fertilizer is declared as an essential commodity and is notified under Fertilizer Control
Order, 1985. State governments are adequately empowered under FCO to stop black
marketing/ diversion of fertilizers and to take punitive action against any person/fertilizer
company involved in black marketing/diversion of fertilizers.
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