Despite geo-political situation, govt ensured smooth supply of fertiliser: Centre

The government has provided special/additional packages over and above NBS rates twice in Rabi 2021-22, then in Kharif 2022, Rabi 2022-23, Kharif and Rabi 2024, it said.

New Delhi: The Centre on Tuesday said that the government has ensured smooth availability of fertilisers at affordable prices despite recent geo-political situations due to Russia-Ukraine war.

"Urea is provided to the farmers at a statutorily notified Maximum Retail Price (MRP) irrespective of the cost of production. The subsidised MRP of 45 kg bag 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 realisation by the urea units is given as subsidy to the urea manufacturer/importer by the central government. Accordingly, all farmers are being supplied urea at the subsidised rates," Union Minister of State for Chemicals and Fertilisers Anupriya Patel said in Rajya Sabha.

In case of Phosphatic and Potassic (P&K) fertilisers, the government has implemented Nutrient Based Subsidy (NBS) Policy from April 1, 2010. Under the policy, a fixed amount of subsidy, decided on annual/bi-annual basis, is provided to manufacturer/importer on subsidised P&K fertilisers depending on their nutrient content i.e. Nitrogen (N), Phosphorus (P), Potassium (K) and Sulphur (S) to improve availability of fertilisers to farmers, the minister said.

Import of P&K fertilisers is decontrolled and companies are free to import/ produce fertiliser raw materials, intermediaries and finished fertilisers as per their business dynamics, he said.

However, the government monitors international prices of key fertilisers and raw materials and fluctuations, if any, are subsumed while fixing NBS rates for P&K fertilisers annually/bi-annually, the minister said.

The government has provided special/additional packages over and above NBS rates twice in Rabi 2021-22, then in Kharif 2022, Rabi 2022-23, Kharif and Rabi 2024, he said.

Further, in order to diversify its sources, the Government of India engages with fertiliser resource-rich countries and facilitates signing of long term agreements between Indian fertiliser companies and suppliers from resource-rich countries for the supply of fertilisers, intermediates and raw materials to India, the minister said.