Question : Shortage of Fertilizers

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

(a) whether Indian farming sector is facing acute shortage of essential fertilizers in the domestic market across the country and if so, the details of States which are experiencing shortage of fertilizers and the type of fertilizers of which supply is inadequate and the reasons behind it;

(b) whether the Government has taken/proposes to take any steps to address the shortage of fertilizers and ensure the availability of essential fertilizers to the farmers and if so, the details thereof;

(c) whether the Government maintains the data on quantity of fertilizers supplied to various States and price at which it was/is being supplied during the period 2014 to 2021, State-wise and year-wise;

(d) the steps taken/being taken to control the prices of fertilizers; and

(e) whether the Government is taking any steps to shift away from chemical fertilizers, towards organic fertilizers, if so, the details thereof?

Answer given by the minister

MINISTER FOR CHEMICALS AND FERTILIZERS & HEALTH AND FAMILY WELFARE
(SHRI MANSUKH MANDAVIYA)
(a) : No Sir. There has been no acute shortage of essential fertilizers in the domestic market across the country. However, in between the season, some states highlighted shortfall of DAP fertilizers, particularly in few districts. Accordingly, based on the requests of State Governments, DAP rakes were moved to meet the requirement. The overall availability of Di- ammonium Phosphate (DAP) fertilizer in the country is comfortable during the ongoing Rabi season 2021-22.

During the ongoing Rabi season 2021-22 (1st October, 2021 to 29th November, 2021), against the DAP requirement (pro-rata) of 34.65 LMT, Department of Fertilizers has ensured availability of 36.60 LMT to the states. Further, overall fertilizer availability in the country has also remained comfortable.

(b): Yes Sir. The following steps are taken by the Government every season to meet the adequate and timely requirement of fertilizers in all the States.

(i) Before the commencement of each cropping season, Department of Agriculture and Farmers Welfare (DA&FW), in consultation with all the State Governments, assesses the state-wise & month-wise requirement of fertilizers.


-2-

(ii) On the basis of requirement projected, Department of Fertilizers allocates sufficient/ adequate quantities of fertilizers to States by issuing monthly supply plan and continuously monitors the availability.

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

(iv) 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.
(v) Regular Weekly Video Conference is conducted jointly by DA&FW and DoF with State Agriculture Officials and corrective actions are taken to dispatch fertilizer as indicated by the State Governments.
(vi) The gap between demand (requirement) and production for Urea & other fertilizer is met through imports. The import for the season is also finalised well in advance to ensure timely availability.

(c) & (d): Urea is provided to all the farmers across the country 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) with effect from 1st March, 2018.

The P&K fertilizers are decontrolled & are covered under Nutrient Based Subsidy scheme.
In the wake of the volatility in prices in the international markets, the prices under NBS subsidy for 2021-22 were notified twice on 20.05.2021 and on 13.10.2021 in order to control the prices of fertilizers. The subsidy rates during FY 2021-22 is at Annexure-A
In addition, through reasonableness guidelines of DoF, the prices of fertilizers over and above the 12% profit margin are treated as unreasonable and thus the reasonableness guidelines control the unreasonable pricing of fertilizers.
Further, quantity of fertilizers supplied to various States during the period 2014 to 2021, State-wise and year-wise is Annexed at Annexure-B
(e): Government has been promoting Organic Farming to substitute the use of chemical pesticide and fertilizer for reduced health hazard, safety and healthy and sustainable production through dedicated schemes viz Parampragat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) since 2015-16. Both the schemes provide end to end support to organic farmers from organic production to certification and marketing including post harvest management support like processing, packaging, storage etc.

*********




Annexure-A

Subsidy rate
From 01.04.2021 to 19.05.2021
S.No. Nutrients NBS (Rs. Per Kg of Nutrient
1. N 18.789
2. P 14.888
3. K 10.116
4. S 2.374

From 20.05.2021 to 30.09.2021
S.No. Nutrients NBS (Rs. Per Kg of Nutrient
1. N 18.789
2. P 45.323
3. K 10.116
4. S 2.374

From 01.10.2021 to 31.03.2021

S.No. Nutrients NBS (Rs. Per Kg of Nutrient
1. N 18.789
2. P 45.323
3. K 10.116
4. S 2.374

Special one-time package with an additional subsidy for the following P&K fertilizers, applicable from 01.10.2021 to 31.03.2022 were:

S.
No. Name of Fertilizers Additional subsidy over and above the NBS rates fixed for the same period (in Rs./MT)

1. DAP 18-46-0-0 8769
2. NPK 20-20-0-13 2000
3. NPK 10-26-26-0 2000
4. NPK 12-32-16 2000


Download PDF Files