Question : Shortage of Fertilizers

(a) the total demand and supply of fertilizers in the country, State/UT-wise;

(b)whether there is any shortage of fertilizers in some parts of the country recently;

(c) if so, the details thereof and the reasons therefor along with the corrective measures taken/being taken by the Government in this regard, State/UT-wise;

(d) whether the Government has convened a meeting with fertilizer industry and officials of Fertilizers Association of India on various issues;

(e) if so, the details of the issues discussed in the meeting and the outcome thereof; and

(f) the steps taken/being taken by the Government to ensure timely supply of adequate quantity and quality fertilizers to the farming community at reasonable prices?

Answer given by the minister

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

(RAO INDERJIT SINGH)

(a): Madam, the total demand and supply of fertilizers in the country, State/ UT-wise is placed at Annexure A.

(b): No Madam.

(c) In view of (b) above, question does not arise.

(d) to (e): Yes, Madam.

(f): Urea is sold to the farmers at a statutorily notified Maximum Retail Price (MRP) which and at present is Rs. 268 for a 50 Kg bag of Urea (exclusive of taxes and charges towards neem coating) and Rs 242 for a 45 Kg bag of Urea (exclusive of taxes and charges towards neem coating).

Government is implementing Nutrient Based Subsidy (NBS) Scheme w.e.f 1.4.201 for P&K fertilizers. Under the said scheme, a fixed amount of subsidy decided on annual basis, is provided on each grade of subsidized Phosphatic & Potassic (P&K) fertilizers depending upon its Nutrient Content. As the P&K fertilizers are decontrolled, the Maximum Retail Price (MRP) is fixed by Companies as per market dynamics at reasonable level. The MRP printed on each bag of these fertilizers, is inclusive of subsidy given by the Government of India. Accordingly, any farmer, who is procuring these fertilizers at MRP, is availing the benefit of subsidy.

Following steps are being taken by the Government to ensure timely supply of adequate quantity and quality fertilizers to the farmers across the country:

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 finalised well in advance to ensure timely availability.

Further, the fertiliser has been declared as Essential Commodity, and in order to ensure supply of adequate quantity of good quality of fertilizer to the farmers, the Govt. of India promulgated the Fertiliser (Control) (organic, Inorganic and Mixed) Order,1985(FCO).The specifications of various fertilizer are specified under FCO. Clause 19 of FCO strictly prohibits the sale / manufacture of fertilizer which are not of prescribed standards. No person shall sell any product as fertilizer unless it is specified under the FCO.

It is the prime responsibility of the State Governments to ensure quality fertilizers to farmers as per FCO specifications and are adequately empowered to implement the provision of FCO. Further, any violation of provision of FCO invokes both administrative and penal penalties.

Further under FCO, it is mandatory to indicate the MRP on bags of fertilizer and no person shall sell or offer for sale any fertilizer at a price exceeding the maximum price or rate fixed by the Govt.

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