Question : DECLINE IN SALE OF FERTILIZERS



(a) the current sales of different types of fertilizers in the country;

(b) the reasons for the declining sales of most of the fertilizers;

(c) whether rising consumption of urea is the reason for declining consumption of other fertilizers;

(d) if so, whether the Government is considering a revision in prices of urea or undertaking any other efforts to reduce the over-consumption of urea and the imbalanced use of soil nutrients; and

(e) if so, the maximum retail price at which urea is likely to be sold?

Answer given by the minister


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

(a) : The current sales April, 2013 to July, 2013 of different types of fertilizers (Urea, DAP, MOP & NPK) in the country is annexed.

(b)& (c): The sales (consumption) of urea has increased to 301.58 LMT in the year 2012-13 as against 294.77 LMT sales of 2011-12. For phosphatic and Potasic fertilizers the sales (consumption) have decreased to 190.85 LMT in the year 2012-13 as against 255.81 LMT sales of 2011-12.

Ministry of Agriculture intimated that there have been reports regarding imbalanced fertilizer use due to less use of required Potassic and Phosphatic fertilizers compared to Nitrogenous fertilizers particularly Urea in several states showing wider NPK consumption ratios. Low price of Urea viz-a-viz DAP & MOP may have also caused imbalance in NPK use ratio in past two years.

(c)& (e): Ministry of Agriculture has also intimated that the increase/decrease in fertilizer application/usage depends on type of soil and its fertility status, types of crops grown and its nutrient requirement, method & mode of fertilizer application, irrigation facilities, rainfall, timely availability of fertilizer, fertilizer prices and farmers’ affordability.

Steps taken by Government to create awareness among farmers are as below:

(i) Training of farmers: Financial assistance for two days training for farmers on balanced use of fertilizers is provided @Rs 10,000/- per training through state Government/ICAR/SAUs/ Fertilizer Industry.

(ii) Field Demonstrations: Field demonstrations on balanced use of fertilizers are conducted at farmer’s field for which financial assistance of Rs 10,000/- per demonstration of one acre area is provided through state Government/ICAR/SAUs/Fertilizer Industry.

(iii) Frontline Field Demonstration (FFD): For confidence building of farmers about usefulness of balanced use of fertilizers, soil testing laboratories conduct FFD on balanced use of fertilizers and financial assistance @ Rs 20,000/- per FFD is provided.

(iv) An ongoing Centrally Sponsored Scheme “Support to State Extension Programme for Extension Reforms” popularly known as ATMA Scheme is under implementation in 614 districts of 28 states & 3 UTs of the country. The scheme promotes farmer centric extension system by putting in place a new institutional arrangement for technology dissemination in the form of an Agricultural Technology Management Agency (ATMA) at district level. The activities taken up under the scheme includes capacity building of extension functionaries and farmers, front line demonstrations, exposure visits, kisan melas, farers, group mobilization, farm schools and farmers-scientists interaction. Through these activities, latest agriculture technologies are disseminated to farmers of the country including creating awareness among farmers for the balanced use of fertilizers. Over 239.27 lakh farmers have benefitted since 2005-06 in different innovative agricultural production technologies under the Scheme. Further information on judicious use of fertilizers are also broadcast through Krishi Darshan, Kisan Vani progrmme, and through focused advertisement campaign under Mass Media scheme implemented through this Ministry.

With effect from 01.11.2012, the Urea (46% N) is sold at maximum price of Rs. 5360 per tonne (exclusive of the Central Excise Duty, Central Sale countervailing duty, the state tax and other local tax wherever levied) whether at the retail point or at intermediate stages. At present Government of India does not propose to review the price of urea.