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GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO.5695 TO BE ANSWERED ON 27.03.2026
Subsidy for Procuring Fertilizers
5695. Dr. M K Vishnu Prasad:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) the total subsidy being provided to farmers for procuring urea fertilizers in
the country during the last four years and the current year, State and year-
wise;
(b) whether there has been a year-on-year increase in the subsidy provided by
the Government and if so, the details thereof;
(c) the measures taken to ensure import of continuous and smooth supply of
urea and fertilizers for farmers in the country and if so, the details thereof;
and
(d) the details of Urea/Fertilizer imported in the country during the last five
years, State and year-wise?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a)& (b): Under ‘DBT in Fertilizers’ system, 100% subsidy on various fertilizer
grades is released to the fertilizer companies, on actual sales to the beneficiaries
based on Aadhar authentication through PoS devices installed at each retail shop. All
farmers are being supplied fertilizers at the subsidized rates on no-denial basis. The
details of the total amount disbursed towards fertilizer subsidy by the Government
during the last four years and the current year i.e., from years 2021-22 to 2025-26 (as
on 23.03.2026) are as follows:(Figures In Rs. Crore)
Financial Year Subsidy Scheme Expenditure
2021–22 Indigenous Urea & Import of Urea 1,04,870.12
2022-23 Indigenous Urea & Import of Urea 1,68,676.70
2023–24 Indigenous Urea & Import of Urea 1,30,220.94
2024–25 Indigenous Urea & Import of Urea 1,24,319.50
2025-26
Indigenous Urea & Import of Urea 1,36,532.06
(as on 23.03.2026 )
(c): To ensure continuous and smooth import of fertilizers in the country, Department
of Fertilizers has facilitated Indian fertilizer companies in entering into Long Term
Agreements (LTAs) and Memoranda of Understanding (MoUs) with resource-rich
countries.
In this regard, for the year 2025–26, Indian companies have entered into
arrangements for import of DAP/NPK fertilizers from Saudi Arabia, Morocco and
Russia. Similarly, for Muriate of Potash (MOP), Indian companies have agreements
with Jordan, Russia, Turkmenistan, Israel, Canada and Belarus. Further, to increase
domestic production of Phosphatic and Potassic(P&K) fertilizers 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.
Above steps together have facilitated increase production of P&K fertilizers
(including DAP & SSP) from 159.54 LMT in 2014-15 to 211.22 LMT in 2024-25.
Further, the Government has implemented Nutrient Based Subsidy (NBS)
Schemew.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under NBS
policy, MRPof P&K fertilizers are decontrolled and companies are free to fix MRP asper their business dynamics at a reasonable level. The 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.
With regard to Urea, the gap between requirement and indigenous production
of Urea is met through timely imports, through three State Trading Enterprises (STEs),
to ensure adequate availability of Urea in the country.
Further, the Government had announced New Investment Policy (NIP) – 2012
on 2nd January, 2013 and its amendment on 7thOctober, 2014 to facilitate fresh
investment in the urea sector and to make India self-sufficient in the urea sector. Total
6 new urea units have been set up under NIP-2012 which includes 4 urea units set up
through Joint Venture Companies (JVC) of nominated PSUs and 2 urea units set up
by the private companies. The units set up through JVC are Ramagundam urea unit
of Ramagundam Fertilizers and Chemicals Ltd (RFCL) in Telangana and 3 urea units
namely Gorakhpur, Sindri and Barauni of Hindustan Urvarak&Rasayan Limited
(HURL) in Uttar Pradesh, Jharkhand and Bihar, respectively. The units set up by
private companies are Panagarh urea unit of Matix Fertilizers and Chemicals Ltd.
(Matix) in West Bengal; and Gadepan-III urea unit of Chambal Fertilizers and
Chemicals Ltd. (CFCL) in Rajasthan. Each of these units has installed capacity of 12.7
Lakh Metric Tonne per annum (LMTPA). These units are highly energy efficient as they
are based on latest technology. Therefore, these units have together added urea
production capacity of 76.2 LMTPA, thereby total indigenous urea production capacity
(Reassessed Capacity, RAC) has increased from 207.54 LMTPA during 2014-15
to283.74 LMTPA during 2023-24. Further, an exclusive policy for the revival of
Talcherunit of FCIL through JVC of nominated PSUs namely Talcher Fertilizers Limited
(TFL) by setting up a new Greenfield Urea plant of 12.7 LMTPA at coal gasification
route has also been approved. Recently, the Union Cabinet has approved the proposal
for setting up of a new Brownfield Ammonia-Urea Complex of 12.7 Lakh Metric Tonnes
(LMT) annual capacity of Urea production within the existing premises of Brahmaputra
Valley Fertilizer Corporation Limited (BVFCL), Namrup, Assam namely Assam Valley
Fertilizer and Chemical Company Ltd. (AVFCCL).
In addition, the Government also notified the New Urea Policy (NUP) – 2015 on
25thMay, 2015 for the existing 25 gas-based urea units with one of the objectives ofmaximizing indigenous urea production beyond RAC. The NUP-2015 has led to
additional production of urea by 20-25 LMT as compared to the production during
2014-15 annually.
Above steps together have facilitated increase of Urea production from level of
225 LMT per annum during 2014-15 to a record Urea Production at 314.07 LMT during
2023-24. During 2024-25, 306.67 LMT of Urea was produced in the country.
(d): The details of imports of fertilizers (Urea, DAP, MOP and NPK) during last five
year i.e. 2020-21 to 2024-25, are as below:
(Qty. in LMT)
As Reported by the Companies
Year Urea
DAP MOP * NPK
2020-21 98.28 48.82 42.27 13.90
2021-22 91.36 54.62 24.60 11.70
2022-23 75.80 65.83 18.66 27.52
2023-24 70.42 55.67 28.69 22.17
2024-25 56.47 45.69 35.41 22.72
MOP includes both Agriculture and Industrial use*
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