Question : SUBSIDY ON FERTILIZES



(a) the subsidy on various fertilizers provided during each of the last three years and the current year, State/UT and fertilizers wise;

(b) whether the poor and marginal farmers are unable to reap the benefit of the fertilizer subsidy;

(c) If so, the reaction of the Government thereon;

(d) whether the Government proposes to provide fertilizer subsidy directly to farmers through their bank account on the lines of Direct Benefit Transfer (DBT) scheme; and

(e) if so, the details thereof including the present status of the proposal and the number of farmers likely to be benefited under the scheme?

Answer given by the minister

THE MINISTER OF CHEMICALS AND FERTIUZERS (SHRI ANANTH KUMAR)

(a) to (e): A statement is laid on the Table of the House.

STAEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO.3 TO BE ANSWERED ON 24.02.2015, REGARDING SUBSIDY ON FERTILIZERS TABLED BY SHRIMATI RANJEET RANJAN AND SIHRI KRUPAL BALAJI TUMANE.

a): The details of fertilizer subsidy (product-wise) given during the last three years and current year are in table below. State-wise subsidy paid figures are not available as the subsidies are released to fertilizers companies. However, company-wise details of fertilizer subsidy paid is given in Annexure.

	(Rupees in crores) Year	Urea	P&K Fertilizers 2011-12	37760.44	36809.41 2012-13	40016.00	30576.10 2013-14	41853.30	29426.86 2014-15	49158.30	19324.15 (Upto Jan 15) 

(b)&(c): Subsidy on Urea and 22 grades of Phosphatic & Potassic (P&K) Fertilizers is passed on to farmers through fertilizer companies in the form of lower MRP, which is much below the actual cost. While Urea is provided at Government fixed price of Rs.5360/- MT (excluding taxes), the P & K fertilizers are provided to farmers at subsidized prices based on the nutrient content on each grade of P&K fertilizer. The fertilizer companies are required to clearly print the MRP on each fertilizer bag. Any sale above the printed MRP is punishable under the Essential Commodities (EC) Act. In order to check whether the prices fixed by the fertilizer companies are reasonable, the companies are required to submit cost data of their fertilizer products so that the Government can ensure that the subsidy has been passed oh to the farmers. Thus all the farmers are benefited from the grant of subsidy on fertilizers.

(d)&(e): At present, the proposal the Direct Benefit Transfer (DBT) in fertilizers is under consideration.

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