Question : PRODUCTION OF FERTILIZERS



(a) whether the target fixed for production of fertilizers has been achieved by all the fertilizers units in the country during 2010-11 and 2011-12;

(b) If so, the details thereof;

(c) the details of the subsidy provided to the fertilizer producing units during the last three years and the percentage increase in the subsidy amount during the said period ;

(d) whether the Government is considering an alternative calculation method for providing more subsidy on fertilizers ;and ?

(e) if so, the details thereof ?

Answer given by the minister


MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI SRIKANT KUMAR JENA)

(a)&(b): No Madam, Some of the fertilizer units in the country are not producing as per their target fixed due to i) non-availability of adequate Natural Gas ii) unforeseen shutdowns due to old plants and iii) shortage of raw materials of phosphoric acid etc.

(c): The details of the subsidy provided to the Phosphatic & Potassic (P&K) fertilizer and urea producing units for the year 2009-10 to 2011-12 and percentage increase over last year are given below:-

(In Lakh Rs.)
Year Amount of Amount of Total amount %age subsidy subsidy of subsidy Increase (+) disbursed on disbursed on disbursed decrease (-) P&K fertilizers Urea over last producing unit producing unit year

2009-10 1600000 1758025 3358025 -37.72 2010-11 2065000 1508073 3573073 6.40 2011-12 2023749 3680941 5704690 59.66

(d) to (e): No Madam, Department of Fertilizers is implementing the Nutrient Based Subsidy (NBS) Policy for P&K fertilizers under which a fixed subsidy per MT, decided on annual basis, is provided on ail the P&K fertilizers. The amount of subsidy per MT varies from one grade to other grade depending upon the nutrient contents in that particular grade.

Subsidy on urea produced by various plants is calculated under the NPS-III under which amount of subsidy per MT varies from plant to plant depending upon the vintage, technology and feedstock of a plant.