MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI SRIKANT KUMAR JENA)
(a) to (e) : A statement is laid on the table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA
STARRED QUESTION NO. 338 TO BE ANSWERED ON 2.12.2010 REGARDING
FORTIFIED FERTILIZES ASKED BY SHRI NAMA NAGESWARA RAO.
In the context of the Nation`s food security, the declining response of
agricultural productivity to increased fertilizer usage in the Country and to ensure the
balanced application of fertilizers, Government of India has introduced Nutrient
Based Subsidy Policy in continuation of the erstwhile Concession Scheme for
decontrolled P & K fertilizers with effect from 1.4.2010 (with effect from 1.5.2010 for
Single Super Phosphate (SSP). As per this policy, Phosphatic & Potassic fertilizers
i.e. Di Ammonium Phosphate (DAP), Muriate of Potash (MOP), 13 grades of NPK
complexes, Mono Ammonium Phosphate (MAP), Triple Supper Phosphate (TSP),
Ammonium Sulphate (AS) and Single Super Phosphate (SSP) are provided to the
farmers at the subsidized rates. Accordingly, the farmers have to pay only 25-40%
approximately of the actual cost of these fertilizers. The Government is providing
subsidy on Sulphur contained in the NPKS complex fertilizers with effect from
1.4.2008 and SSP w.e.f. 1.5.2010. Further, any variant of the fertilizers mentioned
above with secondary and micronutrients, as provided for under the Fertilizer
(Control) Order, 1985, is also eligible for subsidy. The secondary and micro-nutrients
in such fertilizers attracts a separate per tonne subsidy to encourage their application
along with primary nutrients. Accordingly, the Government has provided per MT
additional subsidy for fortified fertilizers including Boronated SSP with secondary and
micro-nutrients as per FCO as follows:
Sl. No. Nutrients for fortification Additional subsidy per as per FCO MT of fortified fertilizers (Rs.)
1. Boron `Bn` 300
2. Zinc `Zn` 500
The manufacturers of Urea have been allowed to charge 5% and 10% over
and above the statutorily fixed MRP on Neem-coated and zincated urea respectively.
The Phosphatic & Potassic fertilizers are decontrolled. Accordingly, keeping
in view the various parameters of the Nutrient Based Subsidy Policy, inter-alia, for
fortified fertilizers, the entrepreneurs in the fertilizer sectors take their decision to
produce and import the fortified fertilizers and sell in the deregulated market.