Parliament Question: Strengthening the Supply of Fertilizers

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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