Question : Fertilizer Subsidy in Cash

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

(a) whether the Government has taken a decision for implementation of direct cash transfer scheme to provide fertilizer subsidy to farmers and if so, the details thereof;

(b) whether the Chintan Shivir Working Group constituted for implementation of DBT scheme to farmers has given its report, if so, the details of recommendations thereof;

(c) the quantum of funds allocated during the present financial year for implementation of fertilizer subsidy to the farmers, State/UT-wise including Andhra Pradesh;
(d) the details of the funds allocated over and above the budgeted amount for the current year for Di-Ammonium Phosphate (DAP); and

(e) whether the Government is looking at increasing fertiliser subsidies for DAP in light of the volatility in prices in the international markets and to meet the excess demand in the country?

Answer given by the minister

MINISTER OF HEALTH & FAMILY WELFARE AND CHEMICALS & FERTILIZERS

(SHRI MANSUKH MANDAVIYA)

(a) & (b): No, Sir. Department of Fertilizers constituted Working Group for Chintan Shivir for Direct Benefit Transfer to farmer (Direct Fertilizer Subsidy transfer to farmers account instead of an industry) under the chairmanship of Hon’ble Minister for Chemicals and Fertilizers. The Working Group-V was tasked to examine the feasibility of introducing a direct fertilizer subsidy transfer to farmers, suggest methods to safeguard against huge price rise and Unavailability of fertilizers, criteria of selection of farmers and their entitlement, criteria for determining the amount of subsidy to be transferred to farmers’ accounts, periodicity of subsidy transfer, any method to safeguard against negative effect on fertilizer industry and actual mechanism of fund transfer.

(c): The quantum of funds allocated during the present financial year i.e FY 2021-22 for implementation of fertilizer subsidy to the farmers, State/UT-wise including Andhra Pradesh is attached as Annexure A.

(d) & (e): In the wake of the volatility in prices in the international markets, the prices under NBS 2021-22 were fixed twice on 20.05.2021 and on 13.10.2021. The NBS rates notified on 20.05.2021 has increased the per MT subsidy for DAP from Rs. 10,231/- to Rs. 24,231/- along with other P&K fertilizers. These rates were applicable from 20.05.2021 to 30.09.2021. The NBS rates notified on 13.10.2021 were made applicable from 01.10.2021 to 31.03.2022. Through this notification, over and above the already increased per MT subsidy rates of Rs. 24,231/-, a special one-time packages of additional subsidy on DAP of Rs. 8,769/- per MT and on 3 most consumed P&K fertilizers were also granted in view of the continuously increasing international prices of raw materials and finished products to ensure affordable, reasonable, adequate and timely availability of these fertilizes.

In a nutshell, the per MT subsidy for DAP applicable from 01.10.2021 to 31.03.2022 is Rs. 24,231 + Rs. 8,769 (one time additional subsidy package) = Rs.33000/-.

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Annexure A

Financial Year : 2021-2022
Tentative State Wise DBT Expenditure Report

S.No State NPKS (Ind.) NPKS(Imp.) City Compost
1
Andaman and Nicobar Islands
0
1.45
0

2 Andhra Pradesh 1020.98 465 0.64
3 Assam 83.21 56.12 0.08
4 Bihar 371.87 365.7 0
5 Chhattisgarh 515.86 539.69 0.35
6 Dadra and Nagar Haveli 0.53 0 0
7 Delhi 1.08 2.46 0.01
8 Goa 3.54 0.22 0
9 Gujarat 722.46 279.13 3.1
10 Haryana 177.9 624.45 0.95
11 Himachal Pradesh 23.07 2.06 0
12 Jammu and Kashmir 21.12 49.98 0
13 Jharkhand 108.96 94.31 1.82
14 Karnataka 1896.87 739.27 3.37
15 Kerala 91.08 61.95 0.62
16 Madhya Pradesh 1075.99 1466.62 1.44
17 Maharashtra 2534.59 1132.64 5.15
18 Manipur 7.67 1.84 0
19 Mizoram 0.04 0 0
20 Nagaland 0 0 0
21 Odisha 594.68 163.09 0.38
22 Puducherry 5.08 1.15 0.05
23 Punjab 295.83 648.6 1.8
24 Rajasthan 361.28 859.55 1.83
25 Tamil Nadu 563.37 327.31 1.89
26 Telangana 1125.25 539.77 0.69
27 Tripura 10.26 3.77 0
28 Uttarakhand 41.61 14.11 0.05
29 Uttar Pradesh 1122.05 1169.71 3.51
30 West Bengal 748.52 213.19 3.26

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