MINISTRY OF CHEMICALS AND FERTILIZERS
UNSTARRED
QUESTION NO . 3382
ANSWERED ON 27.08.2010
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to satate :-
(a) the national policy on supply of quality fertilizers to farmers;
(b) the annual requirement of fertilizers and reasons for short supply;
(c) the quantum of fertilizers imported during last five years and their value;
(d) the details of subsidies extended on fertilizers for the last five years, year-wise, and whether Government is planning to scale down these subsidies;
(e) whether Government is aware of smuggling of fertilizers from India to neighbouring countries;
(f) if so, details thereof and measures taken to curb the same; and (g) the measures taken by Government to encourage utilization of bio-fertilizers in place of chemical fertilizers?
(b) the annual requirement of fertilizers and reasons for short supply;
(c) the quantum of fertilizers imported during last five years and their value;
(d) the details of subsidies extended on fertilizers for the last five years, year-wise, and whether Government is planning to scale down these subsidies;
(e) whether Government is aware of smuggling of fertilizers from India to neighbouring countries;
(f) if so, details thereof and measures taken to curb the same; and (g) the measures taken by Government to encourage utilization of bio-fertilizers in place of chemical fertilizers?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SHRI SRIKANT KUMAR JENA)
(SHRI SRIKANT KUMAR JENA)
(a): Government of India has declared fertilizer as an essential commodity under the Essential Commodities Act, 1955 and has notified Fertilizer Control Order, 1985 under the said Act. The quality of fertilizers is regulated under the Fertilizer Control Order,1985. As per the provision of the Fertilizer Control Order, 1985, fertilizers, which meet the standard of quality laid down in the order can only be sold to the farmers. The State Governments are adequately empowered to take appropriate action against the sellers of non-standard fertilizers. The penal provision includes prosecution of offenders and sentence if convicted up to seven years imprisonment under the ECA, 1955 besides cancellation of authorization certificate and other administrative action. There are 71 fertilizer testing laboratories including four laboratories of the Government of India at Faridabad, Kalyani, Mumbai and Chennai with an annual analyzing capacity of 1.34 lakh samples. During the year 2006-07, 2007-08 and 2008-09, the percentage of samples of fertilizers declared non-standard at all India level were 6.0%, 6.2% and 5.5% respectively.
(b): The requirement of major fertilizers for each crop season is assessed by the Department of Agriculture & Cooperation (DAC) in consultation with the Agriculture Departments of State Governments. For the current Kharif season (April`10 to September`10), the DAC has assessed requirement of 136.64 LMT of Urea, 68.74 LMT of DAP. 22.98 LMT of MOP and 48.69 LMT of complex fertilizers. Urea is the only fertilizer under partial movement, distribution and statutory price control of Government of India. It is imported for direct agriculture use on Government account through State Trading Enterprises (STEs) i.e. MMTC, STC and IPL to fill up the gap between the assessed requirement and indigenous production of Urea. All other fertilizers viz. DAP, MOP, SSP
and NPK etc. are decontrolled/ de-canalized since 1992 and are imported under Open General Licence (OGL). The companies import these fertilizers as per the requirement projected by Department of Agriculture & Cooperation. Government is paying subsidy on these fertilizers under Nutrient Based Subsidy policy. Union Government monitors availability of fertilizers at State level and State Governments are responsible for further distribution within the State. The State-wise requirement (demand), availability and sales of fertilizers during the years 2010-11 (April to July) is at Annexe. As can be seen, the availability of fertilizers is adequate. (c): The year wise import of Urea, DAP & MOP during the last five years
(d): Fertilizers are provided to the farmers in the States at subsidized rates. Expenditure on fertilizer subsidy in the last five years
Under the Nutrient Based Subsidy Policy (NBS), subsidy for indigenous and imported P&K fertilizers has been announced for 2010-11 based on the prevailing prices and price trends of fertilizers in the International market. Subsidy for indigenous urea is provided based on the New Price Scheme-III. The prices of imported fertilizers have not registered any substantial change in the International market in the period April 2010-July 2010. Further, marginal decrease in prices, if any, has been offset by the adverse /US$ exchange rate.
(e) & (f): There are reports of smuggling of fertilizers from India to neighbouring countries.
However, these have not been confirmed by the State Governments. The State
Governments have been advised by the Department of Fertilizers to keep a vigil and to check smuggling of fertilizers, if any, from India to neighbouring countries through land and sea routes.
Similarly Union Home Ministry has also alerted Border guarding forces viz., Border
Security Force (BSF), Indo-Tibetan Border Police (ITBP), Assam Rifles and Sashastra
Seema Bal and Coast Guard to maintain strict vigilance on the borders to curb smuggling, if any, of fertilizers. Further Union Home Secretary has also addressed to Chief Secretaries of Government of Arunachal Pradesh, Assam, Bihar, Gujarat, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Tripura, Uttar Pradesh, Uttarakhand and West Bengal to sensitize the authorities concerned to curb the smuggling, if any, of fertilizers into the neighboring countries.
(b): The requirement of major fertilizers for each crop season is assessed by the Department of Agriculture & Cooperation (DAC) in consultation with the Agriculture Departments of State Governments. For the current Kharif season (April`10 to September`10), the DAC has assessed requirement of 136.64 LMT of Urea, 68.74 LMT of DAP. 22.98 LMT of MOP and 48.69 LMT of complex fertilizers. Urea is the only fertilizer under partial movement, distribution and statutory price control of Government of India. It is imported for direct agriculture use on Government account through State Trading Enterprises (STEs) i.e. MMTC, STC and IPL to fill up the gap between the assessed requirement and indigenous production of Urea. All other fertilizers viz. DAP, MOP, SSP
and NPK etc. are decontrolled/ de-canalized since 1992 and are imported under Open General Licence (OGL). The companies import these fertilizers as per the requirement projected by Department of Agriculture & Cooperation. Government is paying subsidy on these fertilizers under Nutrient Based Subsidy policy. Union Government monitors availability of fertilizers at State level and State Governments are responsible for further distribution within the State. The State-wise requirement (demand), availability and sales of fertilizers during the years 2010-11 (April to July) is at Annexe. As can be seen, the availability of fertilizers is adequate. (c): The year wise import of Urea, DAP & MOP during the last five years
(d): Fertilizers are provided to the farmers in the States at subsidized rates. Expenditure on fertilizer subsidy in the last five years
Under the Nutrient Based Subsidy Policy (NBS), subsidy for indigenous and imported P&K fertilizers has been announced for 2010-11 based on the prevailing prices and price trends of fertilizers in the International market. Subsidy for indigenous urea is provided based on the New Price Scheme-III. The prices of imported fertilizers have not registered any substantial change in the International market in the period April 2010-July 2010. Further, marginal decrease in prices, if any, has been offset by the adverse /US$ exchange rate.
(e) & (f): There are reports of smuggling of fertilizers from India to neighbouring countries.
However, these have not been confirmed by the State Governments. The State
Governments have been advised by the Department of Fertilizers to keep a vigil and to check smuggling of fertilizers, if any, from India to neighbouring countries through land and sea routes.
Similarly Union Home Ministry has also alerted Border guarding forces viz., Border
Security Force (BSF), Indo-Tibetan Border Police (ITBP), Assam Rifles and Sashastra
Seema Bal and Coast Guard to maintain strict vigilance on the borders to curb smuggling, if any, of fertilizers. Further Union Home Secretary has also addressed to Chief Secretaries of Government of Arunachal Pradesh, Assam, Bihar, Gujarat, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Tripura, Uttar Pradesh, Uttarakhand and West Bengal to sensitize the authorities concerned to curb the smuggling, if any, of fertilizers into the neighboring countries.
(g): The Government is promoting Integrated Nutrient Management involving use of bio fertilizers and organic manures in conjunction with chemical fertilizers. Under National Project on Organic Farming 25% credit linked back-ended subsidy up to Rs.40 lakh is provided to private entrepreneurs for establishment of bio fertilizers production units through National Bank for Agriculture and Rural Development (NABARD) and National Cooperative Development Corporation (NCDC).
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