Government Spent Rs. 64032.30 Crore on Fertilizer Subsidy During 2009-10

Consumption (Sales) of major fertilizers like Urea, DAP, MOP and NPK fertilizers during the year 2009-10 and the year prior to it i.e. 2008-09 is as under:

(Sales in LMT)

Year Urea DAP MOP NPK
2008-09 266.51 99.03 40.95 71.22
2009-10 264.48 103.92 46.74 82.03

It may be observed that the sales of DAP, MOP and NPK fertilizers during 2009-10 were higher than those compared with the sales during 2008-09, whereas in the case of Urea, the sales during 2009-10 have been lower than that compared with the sales during 2008-09.

An amount of Rs. 64032.30 crore was spent by the Government on subsidy during the year 2009-10 whereas the payments of 99494.71 crores (79494.71 crores in cash and Rs. 20,000 crore in the form of Bonds) were made during the year 2008-09.  The subsidy outgo in the year 2008-09 was more because of higher prices of finished fertilizers, raw material in the international market.

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 and Para Military Forces have been advised by the Department of Fertilizers and Ministry of Home Affairs to keep a vigil and to check smuggling of fertilizers, if any, from India to neighbouring countries through land and sea routes.

This information was given by the Minister of State for Chemicals and Fertilisers Shri Srikant KumarJena   in the Rajya Sabha