Question : SUBSIDY ON CHEMICAL FERTILIZER UREA D.A.P

(a) the details of subsidy and other facilities being provided on chemical fertilizer urea to make it available to the farmers at cheap rate;

(b) whether it is also a fact that like urea, subsidy and other facilities are also being provided on chemical fertilizer D.A.P. so as to make it available to the farmers at cheap rate too;

(c) if so, the details in this regard;

(d) whether there is any discrepancy in providing subsidy to both; and

(e) if so, the reasons therefor?

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI SATYA BRATA MOOKHERJEE)


(a): Urea is sold at a statutorily notified sale price to farmers of the country, which is far less than the cost of production. Difference between the retention price (cost of production plus 12% post tax return on net worth) and the sale price is borne by the Union Government as subsidy. Since the sale price of both indigenous and imported urea is fixed uniformly, subsidy is also paid on imported fertilizers. On an average, at present, amount of subsidy on urea borne by Union Government is more than Rs. 4000/ per ton.

(b) & (c): Under the Concession Scheme of decontrolled P&K fertilizers, which includes DAP, subsidies are provided by the Government of India to the manufacturers and importers to make such fertilizers available to farmers at the retail prices fixed for the purpose. The estimated subsidy under the Concession Scheme on DAP for 2000-2001 is Rs.1360 crore. The final rates of concession of DAP during the 2000-2001 are given in table below:

Amount in Rs. per MT

On-Account	On-Account rate	Final Rates of Concession

First Quarter Second Quarter Third Quarter	1.4.2000 to 1.7.2000 to 1.10.2000 to	30.6.2000 30.9.2000 31.12.2000 

Indigenous
DAP 2850 4450 3700 3900
Imported DAP 950 1050 1350 1550