Question : Pricing of DAP

(a) whether the exorbitant pricing of DAP in the country has caused distress for the farmers;

(b) if so, the facts thereof;

(c) whether the rate of DAP and other Phosphatic and Potassic (P&K) has been increased exponentially in the international market;

(d) if so, whether some companies have increased the DAP prices and if so, the details thereof;

(e) whether there is a proposal to fix nutrient based subsidy rates for P&K fertilizers;

(f) if so, the steps taken by the Government in this regard; and

(g) the other steps taken by the Government to provide the relief to the farming community?

MINISTER OF HEALTH & FAMILY WELFARE AND CHEMICALS & FERTILIZERS

(SHRI MANSUKH MANDAVIYA)

(a) to (f) : Sir, recently there was an increase in the international prices of raw materials for manufacturing P&K fertilizers and finished P&K fertilizers. To avoid any distress arising out of this increase, the Govt. announced additional funds of Rs.14,775/- Crore for DAP and P&K fertilizers. The Government of India has notified new NBS rates for P&K fertilizers vide. O.M. dated 20.05.2021 till Kharif season 2021 i.e. till Oct. 2021, wherein the subsidy on P&K fertilizers has been increased in order to keep the MRP of DAP and other P&K fertilizers at affordable prices in order to mitigate/minimize the adverse effect arising due to such increase in the international prices. Thus, the nutrient based subsidy rates for P&K fertilizers have been fixed for 24 grades of P&K fertilizers on per MT basis till 31.10.2021.

There was increase in the prices of DAP and other P&K fertilizer by some of the companies during April and May, 2021 compared to what it was during the same time in the year 2020. However, the relief provided by the Govt. has resulted in decrease of the MRP of DAP during June and July, 2021. The MRP of DAP of some companies is even lesser than what it was during June and July, 2020. The MRP of other P&K fertilizers has either decreased or remained more or less same during June and July, 2021 in comparison to what it was during April and May, 2021. The details of the MRP of DAP and other P&K fertilizers during last 1 year are enclosed as Annexure – A & Annexure-B.
(g) : Sir, Urea is also being 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, which also provides relief to the farming community.
In addition to above, the Government has adopted several developmental programmes, schemes, reform and policies that focus on higher income for the farmers. All these policies and programmes are being supported by higher budgetary allocation, non budgetary financial resources by way of creating Corpus Funds like Micro Irrigation Fund and Agri-marketing schemes to strengthen eNAM and GrAMs, as also in the Ministry of Fisheries, Animal Husbandry and Dairying to promote dairy and fisheries sectors. There have been several reforms to unleash the potential and these include Market Reforms like model APLMC (Promotions and Facilitations) Act, 2017; Establishment of Gramin Agriculture markets (GrAMs); Agri Export Policy, 2018; The Farmers Produce Trade and Commerce (Promotion and Facilitation) Act, 2020; The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020; Amendments to Essential Commodity Act, 1955; Promotion of 10,000 FPOs with necessary financial support under Atma Nirbhar Package (Agriculture) and Supplementary Income transfers under PM-KISAN; Pradhan Mantri Fasal Bima Yojna (PMFBY); Pradhan Mantri Krishi Sinchai Yojna (PMKSY); Increase in Minimum Support Price (MSPs) for all Kharif and Rabi Crop ensuring a 50% of profit margin on the cost of production; Har Med Par Ped; Bee-Keeping; Rashtriya Gokul Mission; Blue Revolution; Interest Subvention Scheme; Kisan Credit Card (KCC) that now offers production loan to even dairy & fishery farmers besides agricultural crops etc.

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