In response to a question on fertilizer subsidy in the Lok Sabha the Minister of State for Chemicals & Fertilizers, Shri Hansraj Gangaram Ahir said govt is exploring possibilities of transferring the fertilizer subsidy directly to the farmers.
Urea is provided to farmers at a statutory price of Rs. 5360/MT (plus sales tax and other local taxes wherever levied) plus a maximum of 5% of the statutory price for neem coating urea. The MRP of urea is much below the actual delivered cost. The difference of delivered price and MRP is paid as subsidy to the urea manufacturer/importer by the Government of India, said Ahir.
The MRP along with the subsidy provided on these fertilizers is printed on each bag of these fertilizers and the farmer, who purchases these fertilizers, gets the benefit of subsidy as the subsidy on fertilizers is provided to farmers irrespective of their landholding and economic status.
Minister also listed steps to create awareness among farmers for balanced use of fertilizers such as Training of farmers and Frontline Field Demonstration (FFD).
In year 2015, Soil Health Card Scheme has been introduced to assist State Governments to issue soil health cards to all farmers in the country. Under National Mission on Agricultural Extension & Technology also, activities such as capacity building of extension functionaries and farmers, from line demonstrations, exposure visits, kisanmelas, farmers group mobilization, farm schools and farmers-scientists interaction etc. are taken up.
“The current unpaid subsidy bills for Imported Urea sector is about Rs. 1668 crore. Unpaid subsidy bill of Indigenous Urea sector is about Rs.10747 crore. The nutrient based subsidy rates of P&K fertilizers are decided annually. The subsidy rates for 2016-17 are yet to be reviewed” Ahir stated.