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)to (e): A statement is laid on the table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO.
65 TO BE ANSWERRED ON 10.12.2013 REGARDING DEMAND AND SUPPLY OF FERTILIZERS
(a): The State/UT-wise details of the demand (requirement), availability (includes supply
and distribution) consumption (Sales) of Chemical Fertilizers during 2010-11 to 2012-13 and
current year 2013-14 (upto October’13) is at ANNEXURE-I.
(b)& (c): As can be seen from the Annexure-I, during current year (i.e. Kharif Season 2013
and Rabi Season 2013-14) there has been adequate availability of Chemical Fertilizers
throughout the country.
Further, the State Governments are adequately empowered to take preventive/punitive actions
for violation of any of the provisions of Fertilizer Control Order (FCO) 1985 under Essential
commodities Act 1955 (ECA). Black-marketing activity is violation of FCO, for which State
Government can initiate penal action-including prosecution of offenders. The offender who is
convicted may be awarded the sentence up to seven years imprisonment under ECA, besides
cancellation of authorization letter. Under clause 6 of FCO, it is required that the dealer
displays the stock position and price list of fertilizers at the premises.
Urea prices fixed by the Government has remained unchanged from 01.04.2010 to 31.10.2012.
However, w.e.f. 01.11.2012, the maximum retail price of urea has been marginally increased
by rupees 50/- per metric tonne to rupees 5360/- per metric tonne. (exclusive of the central
excise duty, central sales tax, countervailing duty, the sales tax and other local taxes).
The Government is implementing Nutrient Based Subsidy (NBS) Policy on Phosphatic & Potassic
(P&K) fertilizers w.e.f. 1.4.2010 under which a fixed amount of subsidy decided on annual
basis is provided on all subsidized P&K fertilizers depending upon its nutrient content.
The Maximum Retail Prices (MRP) is fixed by fertilizer companies.
The NBS rates are decided by the Government in the last quarter of the year for the following
year after taking into consideration all relevant factors including international prices of
P&K fertilizers and its raw material and the prevailing exchange rate.
The prices of P&K fertilizer have increased during the last two years due to fluctuation in
the international prices of P&K fertilizers and depreciation of Indian Rupee. However, during
the current year the prices and subsidy, both have come down.
State Governments are empowered under Fertilizer Control Order (FCO), 1985, to draw the samples
to check the quality of fertilizer. Statements showing State-wise action with respect to the
non-standard fertilizers, from 2010-11 to 2011-12 is at ANNEXURES-II A to II B.
(d & e): Before start of each cropping season i.e. Kharif and Rabi, Department of
Agriculture & Cooperation (DAC) conducts biannual Zonal Conferences to assess demand of
fertilizers for the ensuing cropping season. Officials of Department of Agriculture of
all the States, representatives of all the fertilizer companies, officials of FAI, officials
of Ministry of Railways and Department of Fertilizers are participants in these biannual
Zonal Conferences. On the basis of these meetings, Department of Agriculture & Cooperation
projects month-wise and state-wise requirement of fertilizers.
On the basis of month-wise & state-wise projection given by Department of Agriculture
and Cooperation, Department of Fertilizers allocates sufficient/adequate quantities of
fertilizers to the States by issuing monthly supply plan and continuously monitors the
availability through following system:
(i) The movement of all major subsidized fertilizers is being monitored throughout
the country by an on-line web based monitoring system (www.urvarak.co.in) also called as
Fertilizer Monitoring System (FMS).
(ii) The State Governments are regularly advised to coordinate with manufacturers and
importers of fertilizers for streamlining the supplies through timely placement of indents
for railway rakes through their state institutional agencies like Markfed etc.
(iii) Regular weekly video conference is conducted jointly by department of Agriculture
& Cooperation (DAC), Department of Fertilizers (DOF), and Ministry of Railways with State
Agriculture Officials and corrective actions are taken to dispatch fertilizer as indicated
by the State Governments
(iv) The gap in the demand and domestic production of fertilizer is met through imports.
The details of the fertilizer manufacturing units including the quantum of fertilizer
produced during the last three years and current year upto October’13 is at ANNEXURES-III
A to III C.
