The mandate of the Department of Fertilizers (DOF) is to make available fertilizers to farmers at affordable prices. The “affordable prices” part of mandate gets translated into subsidized fertilizers. Urea is being provided to the farmers at a statutorily notified Maximum Retail Price (MRP). The difference between the delivered cost of fertilizers at farm gate and net market realization by the urea units is given as subsidy to the urea manufacturer/importer by the Government of India.
Subsidy of Rs. 38200 crore was being extended on indigenous urea during 2015-16. It has increased by 4.71% during 2016-17 above 2015-16. We have seen annual decline of -7.51% in subsidy extended on indigenous urea to Rs. 36973.7 crore during 2017-18 against Rs. 40000 crore during 2016-17. During 2018-19 (as on 24.12.2018), amount of Rs. 29067.12 crore was being extended as subsidy on indigenous urea. Maximum amount of Rs. 40000 crore has been found in 2016-17 in subsidy extended on indigenous urea during the period under consideration.
Subsidy of Rs. 16400 crore was being extended on imported urea during 2015-16. It has decreased by -31.36% during 2016-17 above 2015-16. Annual decline of -11.34% has been observed in subsidy extended on imported urea from Rs. 11256.59 crore during 2016-17 to Rs. 9980 crore during 2017-18. During 2018-19 (as on 24.12.2018), amount of Rs. 8796.65 crore was being extended as subsidy on imported urea. Maximum amount of Rs. 16400 crore has been seen in 2015-16 in subsidy extended on imported urea during the period under consideration.
Note: Source: RAJYA SABHA SESSION – 247 STARRED QUESTION No 173; Data values in Rs. Crore; NA: Not Available.
Resource Title: Details of subsidies extended on fertilizers from 2015-16 to 2018-19 (From : Ministry of Chemicals & Fertilizers)