Parliament Question: Price Stabilization Mechanism

GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF FERTILIZERS LOK SABHA UNSTARRED QUESTION NO. 1116 TO BE ANSWERED ON: 05.12.2025 PRICE STABILIZATION MECHANISM 1116: SHRI LALJI VERMA: Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state: (a) the comprehensive plan of the Government to ensure adequate and timely availability of fertilizers in the country for the upcoming Kharif and Rabi crops; (b) whether the Government has implemented any new subsidy policy or price stabilization mechanism to reduce the financial burden on farmers despite rising global prices of fertilizers, if so, the details thereof; (c) the steps being taken by the Government to reduce dependency on chemical fertilizers and promote organic and natural farming in the country; and (d) whether the Government has put in place any effective monitoring mechanism to check black marketing and hoarding of fertilizers, if so, the details thereof and the action taken under the said monitoring mechanism so far? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SMT. ANUPRIYA PATEL) (a) Following steps are taken by the Government every season for ensuring timely and adequate availability of fertilizers in the country: (i) Before the commencement of each cropping season, Department of Agriculture and Farmers Welfare (DA&FW), in consultation with all the State Governments, assesses the State-wise & month-wise requirement of fertilizers. (ii) On the basis of requirement projected by DA&FW, D/o Fertilizers allocates adequate quantities of fertilizers to States by issuing monthly supply plan and continuously monitors the availability. (iii) The movement of all major subsidized fertilizers is monitored throughout the country by an on-line web-based monitoring system called integrated Fertilizer Monitoring System (iFMS).-2- (iv) The State Governments are regularly advised to coordinate with manufacturers and importers for streamlining the supplies through timely placement of indents. (v) Regular Weekly Video Conference is conducted jointly by DA&FW and D/o Fertilizers with State Agriculture Officials and corrective actions are taken to dispatch fertilizer as indicated by the State Governments. (vi) The distribution of fertilizers within the State at district level is done by the concerned State Government. (b) Under the Urea Subsidy Scheme, Urea is 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. Accordingly, all farmers are being supplied urea at the subsidized rate. Further, for Phosphatic and Potassic (P&K) fertilizers, the Government has implemented Nutrient Based Subsidy Policy w.e.f. 01.04.2010. Under NBS policy, P&K fertilizers are covered under Open General License (OGL) and companies are free to import / manufacture these fertilizers as per their business dynamics. The NBS subsidy is provided to manufacturer / importer on notified P&K fertilizers on its PoS sale during the season, depending on their nutrient content to ensure availability of fertilizers to farmers. The volatility in international prices of key fertilizers and raw materials is considered while fixing NBS rates for P&K fertilizers so that fertilizers remain affordable to the farmers Besides, to make DAP available at affordable price of Rs. 1,350 per 50 kg bag, special provisions like Rs. 3,500 per MT to cover ‘Other Costs’ which includes costs incurred from factory gate to farm gate, advantage/disadvantage due to increase/decrease in international prices, provision for GST component included in the MRP and provision for reasonable return @4% of net MRP (MRP-GST) have been extended to both imported and domestic DAP and imported TSP over and above NBS subsidy for Rabi 2025-26 season to keep the prices of fertilizers stable. (c) Organic farming is being promoted through Paramparagat Krishi Vikas Yojana (PKVY) in all the States/UTs except North Eastern States and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) for the North Eastern States since 2015-16. Both schemes stress on end-to-end support to farmers engaged in organic farming i.e. from production to processing, certification and marketing. Primary focus of the schemes is to form organic clusters, with preference to small and marginal farmers, to create a supply chain. Both the schemes are implemented through States /UT Governments. Under PKVY, assistance of Rs. 31,500 per ha in 3 years is provided for promotion of organic farming. Out of this, assistance of Rs. 15,000 per ha is provided to farmers through Direct Benefit Transfer for on- farm /off –farm organic inputs. Under MOVCDNER, assistance of-3- Rs. 46,500/ha in 3 years is provided for creation of Farmers Producer Organization, support to farmers for organic inputs etc. Out of this, assistance @ Rs. 32500/ ha is provided to farmers for off -farm /on –farm organic inputs under the scheme including Rs. 15,000 as Direct Benefit Transfer to the farmers. Achievements of PKVY Scheme since its inception (as on 31.10.2025):  16.90 lakh hectares of land converted to organic farming.  28.35 lakh farmers benefited from the scheme.  Since 2015-16, a total of ₹2535.74 crore (central share) has been released under PKVY Scheme (as of 31.10.2025). Achievements of MOVCDNER Scheme since its inception (as on 31.10.2025):  2.36 lakh hectares brought under organic farming.  2.70 lakh farmers benefited.  Since 2015-16, a total of ₹1480.48 crore (central share) has been released under MOVCDNER scheme (as of 31.10.2025). Besides, Under Market Development Assistance (MDA) Scheme, assistance @ Rs.1500/MT is being provided to CBG plants/Fertilizer Marketing Companies for promotion of soil carbon enhancers, viz., Fermented Organic Manure (FOM)/Liquid Fermented Organic Manure (LFOM) and organic fertilizer, viz., Phosphate Rich Organic Manure (PROM) produced at plants under GOBARdhan initiative, with total outlay of Rs.1451.84 Crore (FY 2023-24 to 2025-26), which includes, a corpus of Rs. 360 Crore for research gap funding, etc. Following measures are taken up for promotion of FOM/LFOM/PROM: i. 125 KVKs collaborating with nearby CBG plants to ensure farmers’ access to information about FOM/LFOM and to facilitate the availability of FOM for awareness and demonstration activities. ii. D/o Fertilizers entrusted HURL and RCF to attach Agriculture Extension Officers with CBG/BG Plants to facilitate them with promotion of FOM/LFOM/PROM and to resolve issues. iii. Conduct farmer trainings, demonstrations, and awareness programs on the benefits and application methods of organic fertilizers iv. Ensure availability and supply of organic & waste-derived fertilizers through marketing channels and dealer networks. v. Facilitate capacity building by providing technical guidance to farmers for adopting sustainable nutrient practices. Above initiatives of the Government are expected to address the imbalanced use of chemical fertilizers thereby reducing chemical fertilizer use.-4- Further, Natural farming is being promoted through National Mission on Natural Farming (NMNF).The National Mission on Natural Farming (NMNF) was approved by the Union Cabinet on 25.11.2024 to promote Natural Farming as a mass movement across the country. The Mission has been initiated to strengthen agriculture practices with scientifically backed agroecological approaches towards sustainability, climate resilience and safe food. The Mission aims to reduce input cost of production to the farmers & dependence of farmers with the external markets, rejuvenate soil health & fertility, build resilience of the farm and farmers against climate risks, and provide safe, healthy & nutritious food for the farmers, their families & the consumers. The overall financial outlay is ₹2481 crore (Central share of ₹1584 crore & States’ share ₹897 crore) till 15th Finance Commission period (March 2026). The NMNF is targeted to be implemented in 15,000 clusters to initiate Natural Farming in 7.5 Lakh Ha area and envisaged to make 1 crore farmers aware of Natural Farming. For easy availability of natural farming bio-inputs like Jeevamrit, Beejamrit, etc., 10,000 need-based Bio-input Resource Centres envisaged be set up by practicing natural farming farmers, Primary Agriculture Credit Society/ Farmer Producer Organisations, Self Help Groups, local rural entrepreneurs, Krishi Vigyan Kendras, etc. An output-based incentive of ₹4000/- per acre per year per farmer for 2 years envisaged to be provided to the farmers to practice natural farming, train more farmers, upkeep of livestock (preferably local breed of cow)/ preparation of natural farming inputs including purchase of mixing & storage containers, etc./ purchase of natural farming inputs from Bio-input Resource Centres. Achievements of NMNF Scheme:  ₹517.17 crores have been sanctioned/ released to 30 States/UTs & Central Agencies in F.Y. 2025-26 against a Budget allocation of ₹616.01 crores. Implementation Status of NMNF: NMNF Scheme has been implemented in all States with 17,639 clusters have been formed covering an area of 6.35 lakh hectares. 32,220 Community Resource Persons (CRPs) have been trained through Krishi Vigyan Kendras (KVKs), Agricultural Universities (AUs), and Local Natural Farming Institutions (LNFIs) to provide continuous handholding support to farmers to practise Natural Farming. So far, 15.78 lakh farmers have been enrolled under the scheme. 3,517 BRCs have been set up to easily provide natural farming bio-inputs like Jeevamrit, Beejamrit, etc., More than 4,000 Scientists, Farmer Master Trainers (FMTs), and State & District officials have been trained under the Mission. Further, 806 training institutions, including 530 KVKs, 82 AUs, and 194 Local Natural Farming Institutions (LNFIs), have been identified to strengthen capacity-building activities. Total of 28.74 lakh farmers have been sensitized on Natural Farming through various outreach initiatives. Natural Farming Certification System(NFCS) has been initiated as “PGS- INDIA NATURAL” for certification of all produces of natural farming in accordance with the Natural Farming Standards. It is an online certification system and-5- implemented through National Centre for Organic and Natural Farming(NCONF). More than 5.0 lakhs farmers have been registered under the natural farming certification system till date with more than 60,000 farmers issued NF certificates. Certification will enable farmers to get premium price for natural products. (d) In order to curb black marketing and hoarding, fertilizers are declared as an essential commodity under the Essential Commodities Act, 1955 and notified under Fertilizer Control Order, 1985. State Governments are empowered to take action against persons involved in black-marketing/hoarding, as per provisions of EC Act. Any complaints received at Department of Fertilizers level regarding black-marketing of fertilizers is sent to concerned State Government to take appropriate action under Essential Commodities Act, 1955 and Fertilizer Control Order, 1985. Accordingly, as per the information received from the States regarding enforcement measures taken by them against black-marketing, hoarding and other malpractices for the period 01.04.2025 to 28.11.2025 is placed at Annexure. *******-6- Annexure Annexure referred to in reply to part ( d) of Lok Sabha Unstarred Question No 1116 for answer on 05.12.2025. Cumulative Statement from April 25 to November 25 (as on 28.11.2025) Action taken by the State Government to check black marketing, hoarding, quality check, diversion etc from April 2025 to November 2025 as on date (28.11.2025) Black Marketing Hoarding Sub Standard Quality Diversion Toatal Conviction No. of No. of No. of No. of with Show No. of States InsN peo c. to iof ns Show cause licenses FIR Show cause licenses FIR Show cause licenses FIR Show cause licenses FIR details* cause licenses FIR notice issued cancelled/su registered notice issued cancelled/su registered notice issued cancelled/su registered notice issued cancelled/su registered notice cancelled/su registered /raids spended spended spended spended issued spended Andhra Pradesh 11181 5 3 9 10 6 3 83 0 0 7 2 3 NIL 105 11 15 Arunachal Pradesh 0 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 Assam 3820 12 4 1 59 0 0 36 0 0 27 0 0 NIL 134 4 1 Bihar 15499 1035 607 77 7 0 0 0 0 0 0 0 0 NIL 1042 607 77 Chhattisgarh 6172 294 13 4 29 1 0 136 5 0 24 0 0 NIL 483 19 4 Dadar & Nagar 0 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 Delhi 255 0 0 1 0 0 0 3 0 0 0 3 0 NIL 3 3 1 Goa 614 544 180 6 10 0 0 32 1 0 16 0 0 NIL 602 181 6 Gujarat 12210 33 3 1 0 0 0 83 2 0 7 3 11 NIL 123 8 12 Haryana 4693 49 5 7 18 18 4 48 10 5 13 5 6 NIL 128 38 22 Himachal Pradesh 0 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 Jammu & Kashmir 3694 142 44 2 31 2 0 55 0 0 8 0 0 NIL 236 46 2 Jharkhand 759 57 20 11 32 4 0 2 0 0 1 1 0 NIL 92 25 11 Karnataka 7093 365 22 0 243 5 0 221 14 2 84 6 6 NIL 913 47 8 Kerala 1299 0 0 0 0 0 0 48 0 0 4 0 3 NIL 52 0 3 Madhya Pradesh 5581 0 0 72 0 0 0 606 44 4 631 160 15 NIL 1237 204 91 Maharashtra 44059 16 0 16 0 0 0 1155 1139 37 1 73 1 NIL 1172 1212 54 Manipur 3 0 0 0 0 0 0 0 0 0 1 0 0 NIL 1 0 0 Meghalaya 579 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 Mizoram 21 1 0 0 0 0 0 0 0 0 4 0 0 NIL 5 0 0 Nagaland 72 14 0 14 0 0 0 101 0 0 2 64 1 NIL 117 64 15 Odisha 7031 4 3 2 0 0 0 47 1 0 1966 107 3 NIL 2017 111 5 Puducherry 39 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 Punjab 5617 37 1 1 20 0 1 192 65 3 0 0 4 NIL 249 66 9 Rajasthan 11505 589 76 46 45 17 30 451 1 2 15 16 25 NIL 1100 110 103 Tamilnadu 18805 13 0 4 6 8 0 33 25 0 112 17 1 NIL 164 50 5 Telangana 115321 5 9 3 4 2 0 79 0 0 4 0 5 NIL 92 11 8 Tripura 694 0 0 0 9 0 0 0 0 0 0 0 0 NIL 9 0 0 Uttar Pradesh 29401 2043 2742 165 164 139 8 141 130 12 88 7 12 3 2436 3018 197 Uttarakhand 282 0 0 0 0 0 0 0 0 0 43 0 0 NIL 43 0 0 West Bengal 33777 0 0 0 0 0 0 259 0 0 0 0 0 NIL 259 0 0 Total 340076 5258 3732 442 687 202 46 3811 1437 65 3058 464 96 3 12814 5835 649 * - Details to be submitted- case number, year of FIR and year of filing of case and date of order Above data has been compiled as reported by states