**Executive Summary**
This document presents the Indian government's response to a parliamentary question regarding the supply and pricing of fertilizers. It states that fertilizer availability has been adequate during the Rabi 2025-26 season and outlines measures taken to ensure timely supply, fair distribution, and price stability. The Department of Agriculture and Farmers Welfare (DA&FW) and State Governments are key stakeholders.
**Key Points / Main Content**
* **Fertilizer Availability:**
* Availability of Urea, DAP, MOP, and NPKS fertilizers has remained adequate in the States during the Rabi 2025-26 season.
* **Ensuring Timely and Adequate Availability:**
* DA&FW assesses the State-wise and month-wise fertilizer requirements in consultation with State Governments before each cropping season.
* The Department of Fertilizers allocates fertilizer quantities to States based on DA&FW's projections via monthly supply plans and monitors availability.
* The movement of subsidized fertilizers is monitored through the integrated Fertilizer Monitoring System (iFMS).
* State Governments are advised to coordinate with manufacturers and importers for streamlining supplies.
* DA&FW and the Department of Fertilizers conduct weekly video conferences with State Agriculture Officials to take corrective actions.
* The State Government handles the distribution of fertilizers within the State at the district level.
* **Urea Subsidy Scheme:**
* Urea is provided to farmers at a statutorily notified Maximum Retail Price (MRP) of Rs. 242 per 45 kg bag (excluding neem coating and taxes).
* The government provides a subsidy to the urea manufacturer/importer, covering the difference between the delivered cost at the farm gate and net market realization.
* **Phosphatic and Potassic (P&K) Fertilizers:**
* The Nutrient Based Subsidy (NBS) Policy is in effect since 01.04.2010.
* P&K fertilizers are under Open General License (OGL), allowing companies to import/manufacture them.
* NBS subsidy is provided to manufacturers/importers on notified P&K fertilizers based on nutrient content.
* NBS rates are fixed considering international price volatility.
* **DAP Affordability:**
* To make DAP available at an 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.
* **Fertilizer Regulation:**
* Fertilizers are declared an essential commodity under the Essential Commodities Act, 1955, and notified under the Fertilizer Control Order, 1985.
* State Governments are empowered to take action against black-marketing/over-pricing. Complaints are forwarded to State Governments for action.
**Impact Analysis**
**Stakeholder: Department of Agriculture and Farmers Welfare (DA&FW)**
* **Impact:** Responsible for assessing State-wise and month-wise fertilizer requirements.
* **Action Required:** Consult with State Governments to assess fertilizer needs before each cropping season.
**Stakeholder: State Governments**
* **Impact:** Responsible for distributing fertilizers within their state and taking action against black marketing.
* **Action Required:** Coordinate with manufacturers/importers to streamline supplies and take action on complaints of black marketing or overpricing.
**Stakeholder: Fertilizer Manufacturers and Importers**
* **Impact:** Governed by NBS policy and subsidy schemes.
* **Action Required:** Manufacture/Import fertilizers according to regulations.
**Stakeholder: Farmers**
* **Impact:** Access to fertilizers at subsidized rates.
* **Action Required:** No specific action is required, but farmers should be aware of regulated prices and report any instances of overpricing or black marketing.
Key Entities Referenced
Urea Subsidy Scheme: A scheme providing subsidized urea to farmers at a statutorily notified Maximum Retail Price (MRP).
Nutrient Based Subsidy Policy: A policy implemented for Phosphatic and Potassic (P&K) fertilizers, providing subsidies to manufacturers/importers to ensure fertilizer availability.
Department of Fertilizers: The primary department responsible for allocating fertilizer quantities to States and addressing black-marketing/over-pricing issues.
Integrated Fertilizer Monitoring System (iFMS): An online web-based monitoring system used to track the movement of major subsidized fertilizers throughout the country.
Essential Commodities Act, 1955: Act under which fertilizers are declared as essential commodities and empowers State Governments to take action against black-marketing/over-pricing.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO. 1017 TO BE ANSWERED ON: 05.12.2025
STRENGTHENING THE SUPPLY OF FERTILIZERS
1017: SHRI K RADHAKRISHNAN:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) whether the Government is aware of the fact that farmers from various
States across the country are facing acute shortages and price hikes of fertilizers,
severely affecting agricultural production and peasants’ livelihood;
(b) if so, the details of the steps taken by the Government to ensure timely
availability and fair distribution of fertilizers to farmers, particularly small and
marginal farmers, State-wise;
(c) whether the delay in fertilizer subsidy disbursal and irregular supply has
affected crop productivity and increased farmers’ indebtedness, if so, the details
thereof;
(d) whether the Government proposes to strengthen the supply chain of the
fertilizer supply chain and subsidy mechanism to avoid such crises in the future, if
so, the details thereof; and
(e) the measures being taken to protect peasants from exploitation by private
fertilizer dealers and to ensure fertilizers reach farmers at the subsidized rates fixed
by the Government?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a) to (e) The availability of fertilizers viz. Urea, DAP, MOP and NPKS has
remained adequate in the States during the ongoing Rabi 2025-26 season. Further,
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.-2-
(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).
(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.
Further, 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.
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.
Further, 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/over-pricing, as per provisions of EC Act. Any complaints received at
Department of Fertilizers level regarding black-marketing/over-pricing of fertilizers is
sent to concerned State Government to take appropriate action under Essential
Commodities Act, 1955 and Fertilizer Control Order, 1985.
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