New Delhi: The Government has ensured smooth availability of fertilizers at affordable prices despite recent geo-political situations due to the Russia-Ukraine war, the Ministry of Chemicals and Fertilizers claimed on Tuesday
Union Minister of State for Chemicals and Fertilizers Anupriya Patel informed in the Rajya Sabha that government ensured smooth availability of fertilizers by providing special packages over and above the NBS subsidy rates on need basis so that Maximum Retail Price (MRP) of the fertilizers remains stable and market volatility are subsumed.
"The Government has provided special and additional packages over and above Nutrient Based Subsidy (NBS) rates twice in Rabi 2021-22, then in Kharif 2022, Rabi 2022-23, Kharif & Rabi 2024," she said.
Patel said that urea is provided to the farmers at a statutorily notified Maximum Retail Price (MRP) irrespective of the cost of production.
"The subsidized MRP of 45 kg bags of urea is Rs 242 per bag (exclusive of charges towards neem coating and taxes applicable). The difference between the delivered cost of urea at farm gate and net market realization by the urea units is given as a subsidy to the urea manufacturer and importer by the Government of India. Accordingly, all farmers are being supplied urea at subsidized rates," she said.
In case of Phosphatic and Potassic (P&K) fertilizers, the Government has implemented Nutrient Based Subsidy (NBS) Policy with effect from April 1, 2010. Under the policy, a fixed amount of subsidy, decided on annual and bi-annual basis, is provided to manufacturer and importer on subsidized P&K fertilizers depending on their nutrient content including Nitrogen (N), Phosphorus (P), Potassium (K) and Sulphur (S) to improve availability of fertilizers to farmers. Import of P&K fertilizers is decontrolled and companies are free to import and produce fertilizer raw materials, intermediaries and finished fertilizers as per their business dynamics.
"However, the Government monitors international prices of key fertilizers and raw materials and fluctuations, if any, are subsumed while fixing NBS rates for P&K fertilizers annually and bi-annually," the minister said.
She informed that in order to diversify its sources, the Government of India engages with fertilizer resource rich countries and facilitates signing of long term agreements between Indian fertilizer companies and suppliers from resource rich countries for the supply of fertilizers and intermediates and raw materials to India.
