Press Information Bureau

Government of India

Ministry of Chemicals and Fertilizers

26-April-2012 14:05 IST

The Government is not considering any stamp scheme for providing subsidy on fertilizers. The Government provides subsidy on 25 grades of P&K fertilizers along with Urea. Urea is provided to the farmers at statutory price at Maximum Retail Price (MRP) of Rs. 5310/- per Metric Tonne which is much below the cost of Urea. The difference between the cost of Urea and Statutory MRP of Urea is borne by the Government as subsidy.

A fixed amount of subsidy is provided on 25 grades of P&K fertilizers under Nutrient Based Subsidy Policy. The MRP of these grades of fertilizers are fixed by the fertilizer companies.

An amount of Rs. 65592.13 crore for subsidy on fertilizers has been earmarked by the Government of India for the year 2012-13 (BE).

This information was given by the Minister of State for Chemicals and Fertilisers, Shri Srikant Kumar Jena in a written reply in the Lok Sabha today.

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DNM/AS

Subsidy on fertilisers continues via statutory pricing for urea and nutrient based subsidies for P&K, preserving government cost sharing. Government confirms no stamp scheme will be used; Urea is sold at a statutory price (MRP) below cost with the Government bearing the difference as subsidy. P&K fertiliser support is provided as a fixed per grade subsidy under the Nutrient Based Subsidy Policy, with manufacturers fixing MRPs and the Government allocating budgetary resources to meet the subsidy obligations.