Executive Summary:
This document is the answer to Lok Sabha Unstarred Question No. 990 regarding fertilizer supply to Tamil Nadu, answered on July 25, 2025. It addresses the allocation, demand, subsidy, price regulation, and monitoring mechanisms for urea and NPK fertilizers in Tamil Nadu during the Kharif and Rabi seasons of the financial year 2024-25. The document confirms adequate availability of fertilizers and outlines measures to prevent black marketing and diversion.
Key Points / Main Content:
Fertilizer Availability:
* Urea and NPKS fertilizer availability in Tamil Nadu was adequate during both Kharif 2024 and Rabi 2024-25 seasons.
* Specific data on demand, availability, sales, and closing stocks for Urea and NPKS during Kharif 2024 and Rabi 2024-25 are detailed in the annexure.
Subsidy and Price Regulation:
* Urea is provided to farmers at a subsidized Maximum Retail Price (MRP) of Rs.242 per 45 kg bag (excluding neem coating and taxes).
* The government provides a subsidy to urea manufacturers/importers to cover the difference between the delivered cost and net market realization.
* Nutrient Based Subsidy (NBS) policy is implemented for Phosphatic and Potassic (PK) fertilizers, with subsidy amounts decided on an annual/biannual basis.
* MRP for PK fertilizers under NBS is fixed by fertilizer companies and monitored by the Government.
Monitoring and Prevention of Diversion:
* Fertilizers are declared essential commodities under the Fertilizer Control Order (FCO), 1985, and Fertilizer Movement Control Order, 1973.
* State Governments are empowered under FCO to prevent black marketing and diversion, with authority to take punitive action.
* The Tamil Nadu government monitors the movement of subsidized fertilizer and conducts district-level inspections to prevent diversion and black marketing, initiating legal action as per FCO 1985 for violations.
Impact Analysis:
Farmers in Tamil Nadu:
* Impact: Farmers benefit from subsidized urea and DAP rates, ensuring affordable access to essential fertilizers.
* Action Required: No specific action required, but should be aware of the subsidized rates and report any instances of black marketing or diversion.
Fertilizer Manufacturers/Importers:
* Impact: Urea manufacturers/importers receive subsidies to cover the cost difference, ensuring viability.
* Action Required: Comply with the regulations regarding MRP and subsidy claims.
State Government of Tamil Nadu:
* Impact: Empowered to monitor and prevent black marketing and diversion of fertilizers.
* Action Required: Continue monitoring fertilizer movement, conduct inspections, and take action against violations of the Essential Commodities Act and FCO 1985.
Department of Fertilizers, Government of India:
* Impact: Responsible for administering the Urea Subsidy Scheme and the Nutrient Based Subsidy (NBS) Policy.
* Action Required: Continue to monitor the availability and pricing of fertilizers, and to adjust subsidy rates as needed to ensure affordability for farmers.
Key Entities Referenced
Tamil Nadu: A state in southern India, the subject of the fertilizer supply question.
Urea: A nitrogen-based fertilizer, subject to price regulation and subsidy.
NPK fertilizers: A type of complex fertilizers containing Nitrogen, Phosphorus, and Potassium, allocated to Tamil Nadu.
Kharif: A cropping season, also known as the monsoon or autumn season.
Rabi: A cropping season, also known as the winter season.
Urea Subsidy Scheme: A government program providing urea to farmers at subsidized rates.
Nutrient Based Subsidy (NBS) Policy: A policy implemented by the Government of India for Phosphatic and Potassic (PK) Fertilizers since 01.04.2010.
Fertilizer Control Order, 1985: An order under the Essential Commodities Act, empowering State Governments to prevent black marketing and diversion of fertilizers.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO. 990 TO BE ANSWERED ON: 25.07.2025
FERTILIZERS SUPPLY TO TAMIL NADU
990: DR. T SUMATHY ALIAS THAMIZHACHI THANGAPANDIAN:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) the quantity of urea and NPK fertilizers allocated to Tamil Nadu for kharif and rabi
crops during the financial year 2024-25;
(b) whether there was any shortfall compared to State demand;
(c) whether the Centre has responded to Tamil Nadu’s repeated requests for
additional subsidy and early dispatch to cyclone-affected districts, if so, the details
thereof;
(d) the current status of price regulation on urea and DAP and the impact of these
changes on small holding farmers in Tamil Nadu during the last one year; and
(e) whether any monitoring mechanisms have been put in place to prevent diversion
or black marketing of subsidised fertilizers in the State and if so, the details
thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a) & (b) The availability of Urea and NPKS fertilizers in the State of Tamil Nadu has
remained adequate during Kharif 2024 and Rabi 2024-25 seasons. The information
regarding demand, availability, sales and closing stocks of Urea & NPKS during the
Kharif 2024 and Rabi 2024-25 season in the State of Tamil Nadu is placed at
Annexure.
(c) & (d) Under Urea Subsidy Scheme, Urea is presently 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. Further, Government has implemented Nutrient Based
Subsidy (NBS) Policy w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K)
Fertilizers. Under the policy, a fixed amount of subsidy, decided on annual/bi-annual
basis, is provided on notified P&K fertilizers depending on their-2-
nutrient content. Under NBS Scheme, MRP is fixed by fertilizer companies as per
market dynamics at reasonable level which is monitored by the Government.
Accordingly, all farmers of the country, including in Tamilnadu, are supplied
Urea & DAP at the subsidized rates.
(e) Fertilizer is declared as an essential commodity and is notified under Fertilizer
Control Order, 1985 and Fertilizer (Movement Control) Order, 1973. State
Governments are adequately empowered under FCO to stop black-marketing and
diversion of fertilizers and to take punitive action against any person / Fertilizer
company involved in black marketing and diversion of fertilizers by violating the
provisions of Essential Commodities Act, 1955 and Fertilizer Control Order 1985
(FCO). Further, State Government of Tamil Nadu has informed that they are regularly
monitoring the movement of subsidised fertilizer from manufacturer to whole sales,
retailers and finally to farmers. Regular district level squad inspections were conducted
against Top 40 urea buyers etc. to curb diversion and black marketing of fertilizers and
strict legal action is initiated as per FCO 1985 in case if any violation is found.
*******-3-
ANNEXURE
Annexure referred to in reply to (a) & (b) of Lok Sabha Unstarred Question No
990 for answering on 25.07.2025
TAMIL NADU
FERTILIZRS POSITION DURING RABI 2024-25
FIG. IN LMT
DURING RABI 2024-25
S.No Product
REQUIREMENT AVAILABILITY SALES CLOSING STOCK
1 UREA 6.00 8.18 6.49 1.70
2 NPKS 6.00 6.62 4.95 1.70
FERTILIZRS POSITION DURING KHARIF 2024
FIG. IN LMT
DURING KHARIF 2024
S.No Product
REQUIREMENT AVAILABILITY SALES CLOSING STOCK
1 UREA 4.91 6.35 4.43 1.93
2 NPKS 4.54 5.57 3.54 2.03