Question : Anomalies in Fertilizers Price

(a) the prevailing prices of various categories of fertilizers in the country, fertilizer and State/UT-wise;

(b) whether large scale anomalies/ steep rise in the prices of various fertilizers have been witnessed;

(c) if so, the details thereof and the reasons therefor along with the steps taken to reduce the prices of fertilizers during each of the last three years and the current year, fertilizer and State/UT-wise;

(d) the number of complaints received from the States regarding non-availability of fertilizers during sowing season and the action taken thereon during the said period, State/UT-wise; and

(e) the steps taken/proposed to be taken by the Government to provide fertilizers to the farmers at reasonable price along with the action taken to curb black marketing of fertilizers in the country?

Answer given by the minister

MINISTER OF STATE (INDEPENDENT CHARGE) FOR THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

(RAO INDERJIT SINGH)

(a): Urea is sold at a Maximum Retail Price (MRP) statutorily fixed by the Government of India which is at present Rs. 5360/- per metric tonne (exclusive of Central/State levies and other charges). The difference between the delivered cost of fertilizers 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. In respect of P&K fertilizers, the prices are fixed by the fertilizer companies as per market dynamics at reasonable level under the NBS Scheme which is being implemented by the Government of India w.e.f. 1.4.2010. Under the policy, a fixed amount of subsidy, decided on annual basis, is provided on subsidised P&K fertilizers depending on their nutrient content. Average MRP of various grades of P&K fertilizers during the year 2017-18 is at annexure – I.

(b): No anomalies/steep rise in the prices of various fertilizers has been seen during the current/previous year.

(c): In line with fall in international prices during the year 2016-17, the prices of P&K fertilizers had come down by Rs. 190/-, Rs. 250/- and Rs. 50/- per 50 Kg bag of DAP, MOP and Complex Fertilizers respectively during the year 2016-17.

(d): There is no report of non-availability of fertilizers from any of the States/UTs during the current year as the availability of fertilizers was adequate across the country.

(e): Subsidy on Urea and P&K fertilizers is being given by the Government of India to so that farmers can get these fertilizers at reasonable prices. Before the commencement of each cropping season, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW), in consultation with all the State Governments, assesses the requirement of fertilizers. After assessment of requirement, DAC&FW projects month-wise requirement of fertilizers. On the basis of month-wise & state-wise projection given by DAC&FW, Department of Fertilizers allocates sufficient/ adequate quantities of fertilizers to States by issuing monthly supply plan and continuously monitors the availability through following system:

(i) The movement of all major subsidized fertilizers is being monitored throughout the country by an on-line web based monitoring system called integrated Fertilizer Monitoring System (iFMS);

(ii) The State Governments are regularly advised to coordinate with manufacturers and importers of fertilizers for streamlining the supplies through timely placement of indents for railway rakes through their state institutional agencies like Markfed etc.

(iii) Regular Weekly Video Conference is conducted jointly by Department of Agriculture & Cooperation and Farmers Welfare (DAC&FW), Department of Fertilizers (DoF), and Ministry of Railways with State Agriculture Officials and corrective actions are taken to dispatch fertilizer as indicated by the State Governments.

(iv) The gap between demand (requirement) and production is met through imports. The import for the season is also finalized well in advance to ensure timely availability.

(v)
Thus, Department of Fertilizers ensures adequate availability of fertilizers at State level and distribution within the State is the responsibility of the concerned State Government. Government has declared fertilizer as an essential commodity under the Essential Commodities Act, 1955 and notified Fertilizer Control Order, 1985 and Fertilizer (Movement Control) Order, 1973. The State Governments have been empowered to take appropriate action to curb black-marketing of fertilizers and initiate action against the persons who violate these orders. Department of Fertilizers has, from time to time, written to the Chief Secretaries of various States to activate the enforcement agencies under their jurisdiction to take appropriate action to curb black-marketing.

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