(a) Whether the prices of imported fertilizers are more than
the prices of subsidized fertilizers;
(b) If so, the details thereof alongwith the reasons therefor; and
(c) the steps being taken by the Government to provide the
imported fertilizers to the farmers on the affordable prices?
MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF STATISTICS
AND PROGRAMME IMPLEMENTATION AND MINISTER OF STATE IN THE MINISTRY OF
CHEMICALS AND FERTILIZERS(SHRI SRIKANT KUMAR JENA)
(a) to (c): Government is paying subsidy on all major indigenous &
imported fertilizers. Urea is the only fertilizer under statutory
price control and it is imported for direct agriculture use on
Government account to bridge the gap between assessed demand and
indigenous production. Urea so imported is handled and distributed
by the designated handling agencies at various ports. Besides cost
of urea Government is also bearing expenditure on handling at ports
and movement to the various destinations in the states. Urea is made
available to the farmers at a statutory controlled Maximum Retail Price
throughout the country. The issue price of urea (MRP minus Distribution
Margin) is recovered from the handling agencies. The difference between
gross expenditure and issue price of urea is borne by the Government as
subsidy on imported urea.
The subsidy on P&K Fertilizers (both indigenous and imported) is paid
to the manufacturers/importers of these fertilizers at a fix rate under
Nutrient Based Subsidy (NBS) Scheme depending on the nutrient contents
in the product. Import of these fertilizers is permitted under Open
General Licence (OGL) and companies are importing these fertilizers
as per their commercial judgment. The Maximum Retail Prices of these
fertilizers are free and fixed by the manufacturers/importers with
reference to the prevailing market prices and Rupee Dollar exchange
rate.