Executive Summary:
This document addresses a Lok Sabha question regarding the Nutrient Based Subsidy (NBS) Scheme and its impact on fertilizer use, particularly in Madhya Pradesh. It details the scheme's implementation, addresses discrepancies in nutrient use, fluctuations in retail prices of phosphatic and potassic fertilizers, and government measures to ensure affordability for farmers, especially small and marginal farmers. The NBS policy for PK fertilizers was implemented on April 1, 2010.
Key Points / Main Content:
* **Nutrient Based Subsidy (NBS) Scheme:**
* Implemented for Phosphatic and Potassic (PK) fertilizers starting April 1, 2010.
* Provides a fixed subsidy to manufacturers/importers based on the nutrient content (N, P, K, S) of subsidized PK fertilizers, decided on an annual/biannual basis.
* Offers additional subsidy for fortification with Zinc (500MT) and Boron (300MT).
* Aims to promote balanced fertilization through various NPK grades tailored to soil, climate, and crop health.
* Consumption of various NPK grades of fertilizers has increased from 103.80 LMT in 2010-11 to 149.71 LMT in 2024-25.
* **Balanced Fertilizer Use:**
* The government encourages balanced and judicious fertilizer use.
* The Soil Health and Fertility Scheme (introduced in 2014-15) promotes Integrated Nutrient Management (INM) through chemical fertilizers, secondary/micro nutrients, organic manures, and biofertilizers.
* The scheme includes setting up and strengthening Soil Testing, Fertilizers/Biofertilizers/Organic fertilizers Quality Control Labs, promoting Micronutrients, and issuing Soil Health Cards.
* Soil Health Cards provide farmers with soil nutrient status and recommendations for appropriate nutrient dosages.
* 25.13 Cr. soil health cards have been issued to farmers.
* **Pricing and Affordability:**
* Under the NBS scheme, PK fertilizers are decontrolled, and companies set MRP based on market dynamics.
* The government monitors MRP to ensure reasonable levels.
* To maintain DAP price at ₹1350 per 50 Kg bag, the government introduced special provisions beyond NBS subsidy (Rs. 3500 per MT).
* These provisions cover costs from factory gate to farm gate, international price fluctuations, GST, and reasonable return for both imported and domestic DAP for Kharif 2025 season.
* Extended for imported Triple Super Phosphate (TSP).
* The scheme is implemented pan-India and is equally beneficial for all types of farmers.
* **Madhya Pradesh Specific Measures:**
* The Government of Madhya Pradesh provides advanced lifting of fertilizers at zero percent interest rates through Primary Agriculture Cooperative Societies for their member farmers.
Impact Analysis:
* **Fertilizer Manufacturers/Importers:**
* *Impact:* Receive subsidies based on nutrient content, impacting pricing strategies and product formulations.
* *Action Required:* Align product offerings and pricing with NBS guidelines to maximize subsidy benefits and market competitiveness.
* **Farmers (All Farmers, including Small and Marginal):**
* *Impact:* Benefit from potentially lower prices of PK fertilizers and access to Soil Health Cards for informed nutrient management.
* *Action Required:* Utilize Soil Health Cards, adopt balanced fertilization practices, and take advantage of subsidized fertilizer availability through cooperatives.
* **State Governments (Specifically Madhya Pradesh):**
* *Impact:* Responsible for facilitating fertilizer distribution and promoting balanced nutrient management practices among farmers.
* *Action Required:* Continue to provide advanced lifting of fertilizers at zero percent interest rates through Primary Agriculture Cooperative Societies.
Key Entities Referenced
Nutrient Based Subsidy NBS Scheme: A scheme implemented by the Government of India to provide subsidies on phosphatic and potassic fertilizers based on their nutrient content (N, P, K, S).
Madhya Pradesh: A state in India, specifically mentioned in the context of the Nutrient Based Subsidy Scheme and its impact on balanced fertilizer use.
Soil Health and Fertility Scheme: A scheme introduced to assist states in promoting Integrated Nutrient Management (INM) through judicious use of fertilizers and other nutrients for improving soil health and productivity.
Diammonium Phosphate DAP: A phosphatic fertilizer whose retail prices and affordability are discussed in the context of government interventions.
Primary Agriculture Cooperative Societies: Organizations through which the Government of Madhya Pradesh provides fertilizers at zero percent interest rates to member farmers.
Kharif 2025 season: An agricultural season for which special provisions were introduced by the Government of India over and above NBS Subsidy.
SMT. ANUPRIYA PATEL: The Minister of State in the Ministry of Chemicals and Fertilizers who provided the answer to the Lok Sabha question.
Triple Super Phosphate TSP: An imported phosphatic fertilizer for which provisions have been extended.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO. 1032 TO BE ANSWERED ON: 25.07.2025
Nutrient Based Subsidy Scheme in Madhya Pradesh
1032. SMT. BHARTI PARDHI:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
a) the overall impact of the Nutrient Based Subsidy (NBS) Scheme on balanced
fertilizer use across different crops and regions since its inception year-wise till date,
particularly in Madhya Pradesh;
b) whether there are any discrepancies in the use of different nutrients (N,P,K,S) under
this scheme and if so, the details thereof along with the measures being taken to
overcome it;
c) whether retail prices of phosphatic and potassic (P&K) fertilizers, particularly
Diammonium Phosphate (DAP) have witnessed significant fluctuations; and
d) if so, the steps taken by the Government to ensure continued affordability of these
essential fertilizers to farmers, particularly small and marginal farmers, State-wise
including Madhya Pradesh?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a): In case of Phosphatic and Potassic (P&K) fertilizers, Government has implemented
Nutrient Based Subsidy (NBS) Policy w.e.f. 1.4.2010. Under the policy, a fixed amount of
subsidy, decided on annual/bi-annual basis, is provided to manufacturer / importer on
subsidized P&K fertilizers depending on their nutrient content i.e. Nitrogen (N),-2-
Phosphorus (P), Potassium (K) and Sulphur (S). Under NBS scheme, additional subsidy
@ ₹ 500/MT and ₹ 300/MT is provided for fortification with Zinc and Boron respectively
over and above NBS subsidy. Fertilizer companies introduce different grades of NPK
fertilizers specific to soil, climatic conditions, crop health etc. Hence consumption of more
NPK grades along with fortified versions are beneficial for balanced fertilization. The
consumption of various NPK grades of fertilizers which promotes balanced fertilization
has increased from 103.80 LMT in 2010-11 to 149.71 LMT in 2024-25.
(b): The Government is encouraging the concept of balanced and judicious use of
fertilizer. Soil Health and Fertility Scheme introduced in the year 2014-15 with objective
to assist states in promoting Integrated Nutrient Management (INM) through judicious use
of chemical fertilizers including secondary and micro nutrients in conjunction with organic
manures & bio-fertilizers for improving soil health and its productivity. This scheme has
sub-components like, setting up/ strengthening of Soil Testing, Fertilizers/ Bio-fertilizers
& Organic fertilizers Quality Control Labs, promoting Micro-nutrients, and testing soil
samples to issue Soil Health Cards. Soil Samples are processed following standard
procedures and analyzed for various parameters viz, pH, electrical conductivity (EC),
Organic Carbon, available Nitrogen, Phosphorous, Potassium, Sulphur and
micronutrients (Zinc, Copper, Iron, Manganese & Boron). Soil Health Card provides
information to farmers on soil nutrient status of their soil and recommendation on
appropriate dosage of nutrients to be applied for improving soil health and its fertility.
Under the scheme, 25.13 Cr. soil health cards have been issued to farmers. 93781
farmer's trainings, 6.80 lakh demonstrations, 7425 farmer's melas/ campaigns on soil
health card recommendations have been organized across the country.
(c) & (d): Under NBS Scheme, P&K fertilizers are decontrolled and fertilizer companies
are allowed to fix MRP as per market dynamics at reasonable level which is monitored by
the Government. In order to keep targeted farm gate price of DAP @ ₹1350 per 50 Kg
bag, Government of India has introduced special provisions over and above NBS
Subsidy, like Rs. 3500 per MT to cover ‘Other Costs’ which includes costs incurred from
factory gate to farm gate, advantage / disadvantage due to increase / decrease in-3-
international prices, provision for GST component included in the MRP and provision for
reasonable return @ 4% of net MRP (MRP-GST) for both imported and domestic DAP
for Kharif 2025 season. These provisions have also been extended for imported Triple
Super Phosphate (TSP).
NBS is implemented on pan-India basis to ensure affordability of P&K Fertilizers
to farmers. The scheme is equally beneficial for all types of farmers, including small and
marginal farmers. To ensure affordability of P&K fertilizers to small and marginal farmers,
Govt. of Madhya Pradesh provides advanced lifting of fertilizers at zero percent interest
rates through Primary Agriculture Cooperative Societies for their member farmers.
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