**Executive Summary**
This document is an answer to Unstarred Question No. 2207 in Lok Sabha, addressing concerns about a DAP fertilizer shortage in Punjab, to be answered on December 12, 2025. It states that the availability of DAP has remained adequate and outlines measures taken by the government to ensure adequate fertilizer supply, prevent black-marketing, and promote domestic production. The document highlights the role of state governments in fertilizer distribution and taking action against malpractices.
**Key Points / Main Content**
* **DAP Availability in Punjab:**
* The availability of DAP in Punjab has been adequate during the Rabi 2025-26 season.
* Between April 1, 2025, and December 8, 2025, 455,000 Metric Tons of DAP were available against a pro-rata requirement of 405,000 Metric Tons.
* Sales were 298,000 Metric Tons, with the State holding a closing stock of 157,000 Metric Tons.
* **Government Measures for Fertilizer Availability:**
* The Department of Fertilizers ensures adequate availability at the State level, while the State government handles district-level assessment and distribution.
* The Department of Agriculture and Farmers Welfare (DA&FW) assesses fertilizer requirements in consultation with State Governments before each cropping season.
* The Department of Fertilizers allocates adequate quantities based on DA&FW projections and monitors availability.
* Fertilizer movement is tracked via the integrated Fertilizer Management System (iFMS).
* State Governments are advised to coordinate with manufacturers and importers.
* Weekly video conferences with DA&FW and State Agriculture Officials address fertilizer dispatch and issues.
* **Nutrient Based Subsidy (NBS) Scheme:**
* The Government implemented the Nutrient Based Subsidy (NBS) Scheme for Phosphatic and Potassic (P&K) Fertilizers, effective April 1, 2010.
* Under NBS, P&K fertilizers are under Open General License (OGL), allowing companies to freely import/manufacture them.
* **Promoting Domestic Production:**
* The government recognizes new manufacturing units and capacity increases under the NBS Scheme.
* The number of P&K fertilizers covered under the NBS policy increased from 22 to 28 grades.
* Freight Subsidy on SSP has been approved to encourage the usage of indigenously manufactured fertilizer since Kharif-2022.
* **Addressing Black-Marketing/Hoarding:**
* Fertilizers are declared as essential commodities under the Essential Commodities Act, 1955 and the Fertilizer Control Order, 1985.
* State Governments are empowered to take action against black-marketing/hoarding.
* Complaints received by the Department of Fertilizers are forwarded to State Governments for action under the Essential Commodities Act and Fertilizer Control Order.
* In FY 2025-26, the State Government of Punjab registered 4 FIRs and cancelled 3 Letters of Authorization against dealers involved in malpractices.
**Impact Analysis**
**Farmers of Punjab**
* **Impact:** Farmers are intended to benefit from ensured adequate supply of DAP fertilizer at subsidized prices, potentially leading to improved crop yields and reduced costs.
* **Action Required:** To report any instances of overcharging, hoarding, or black-marketing to the State Government for appropriate action.
**State Government of Punjab**
* **Impact:** The State Government is responsible for the district-level assessment and distribution of fertilizers within the State and has the authority to enforce regulations against malpractices.
* **Action Required:** Coordinate with manufacturers and importers, address complaints of black-marketing/hoarding, and take appropriate action under the Essential Commodities Act and Fertilizer Control Order.
**Manufacturers and Importers of Fertilizers**
* **Impact:** Required to coordinate with State Governments for timely placement of indents and to adhere to regulations regarding pricing and distribution.
* **Action Required:** Ensure adequate and timely supply of fertilizers to meet State demands, comply with pricing regulations, and avoid hoarding or black-marketing practices.
**Department of Agriculture and Farmers Welfare (DA&FW)**
* **Impact:** Responsible for assessing the State-wise and month-wise requirements of fertilizers in consultation with State Governments.
* **Action Required:** Accurately assess fertilizer requirements and coordinate with the Department of Fertilizers for adequate allocation and supply.
**Department of Fertilizers**
* **Impact:** Responsible for allocating adequate quantities of fertilizers to States based on DA&FW projections and monitoring the availability.
* **Action Required:** Ensure adequate supply of fertilizers, monitor availability, address complaints of malpractices, and coordinate with State Governments and other stakeholders.
Key Entities Referenced
DAP: Diammonium Phosphate, a commonly used fertilizer, focus of the question due to reported shortage.
Punjab: Indian state where the DAP shortage is being addressed.
Department of Fertilizers: The government department responsible for ensuring adequate availability of fertilizers.
Nutrient Based Subsidy (NBS) Scheme: Scheme implemented by the government for Phosphatic and Potassic (P&K) Fertilizers.
Essential Commodities Act, 1955: Act under which fertilizers are declared as essential commodities to prevent black-marketing and hoarding.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO. 2207 TO BE ANSWERED ON: 12.12.2025
SHORTAGE OF DAP IN PUNJAB
2207: SHRI MALVINDER SINGH KANG:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) the main reasons for the current shortage of DAP fertilizer in Punjab despite the
allocations by the Government;
(b) the manner in which the Union Government proposes to address the said supply-
demand gap;
(c) the measures being taken by the Government to ensure increased domestic
production and timely import of DAP to meet the growing demand in the State of Punjab
during the current and upcoming crop seasons;
(d) whether the Union Government received any complaints from farmers of Punjab
regarding the availability, supply disruptions or black marketing of DAP fertilizer, if so,
the details thereof;
(e) the steps being taken to mitigate these issues; and
(f) whether any actions is being taken by the Union Government to ensure that DAP
fertilizer reaches the farmers of Punjab at the notified subsidized price without
overcharging or hoarding by intermediaries, if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a) & (b) The availability of DAP in the State of Punjab has remained adequate during
the ongoing Rabi 2025-26 season. From 01.04.2025 to 08.12.2025, 4,55,000 Metric
Tons of DAP has been made available in the State against the pro-rata requirement
of 4,05,000 Metric Tons. The sales during the said period has been 2,98,000 Metric
Tons and the State holds closing stock 1,57,000 Metric Tons of DAP.
Further, the mandate of the D/o Fertilizers is to ensure adequate availability of
fertilizers at State level. However, the assessment and distribution of fertilizers within
the State at district level is done by the concerned State government.
Moreover, following steps are taken by the Government every season for ensuring
timely and adequate availability of fertilizers in the country, including the State of
Punjab:-2-
(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
Management System (iFMS).
(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.
(c) The Government has implemented Nutrient Based Subsidy (NBS) Scheme
w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under NBS
Scheme, P&K fertilizers are covered under Open General License (OGL) and
companies are free to import/manufacture these fertilizers as per their business
dynamics.
Further, to increase domestic fertilizer production and make country self reliant, the
following measures have been taken by the Government:
(i) Based on the requests, the new manufacturing units or increase in manufacturing
capacity of existing units have been recognized / taken on record under the NBS
Scheme.
(ii) The number of P&K fertilizers covered under NBS policy has increased from 22
grades in 2021 to 28 grades.
(iii) Freight Subsidy on SSP, which is an indigenously manufactured fertilizer, has
been approved since Kharif-2022 to promote SSP usage for providing Phosphatic or
'P' nutrient to the soil.
(d) to (f) In order to address the issue of black-marketing/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 these malpractices is sent to concerned State Government to take
appropriate action under Essential Commodities Act, 1955 and Fertilizer Control
Order, 1985.
Accordingly, as informed by the State government of Punjab, during the FY 2025-26,
04 FIR's have been registered and 03 Letter of Authorizations have been cancelled
as an enforcement action against the dealers/agencies found involved in these
malpractices.
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