New Delhi, July 24 (KNN) In order to regulate the trade, price, quality and distribution of fertilizers, Government of India has declared the fertilizer as an essential commodity, the Parliament was informed.

Minister of State for Planning (IC) and Chemicals & Fertilizers, Rao Inderjit Singh, in a written reply to a question on National Policy on Fertilizer Supply, in Lok Sabha today, informed this.

He said the fertilizer has been declared as an essential commodity under the Essential Commodities Act, 1955 and has promulgated the Fertilizer (Control) Order, 1985. Specifications of fertilizers are prescribed in the said order.

Singh informed that 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. The movement of all major subsidized fertilizers is being monitored throughout the country by an on-line web based monitoring system (www.urvarak.co.in) also called as Integrated Fertilizer Monitoring System (iFMS), said the Minister.

The Minister said that 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.

Further, the Government is implementing Nutrient Based Subsidy (NBS) Scheme w.e.f. 1.4.2010. Under the said Scheme, a fixed amount of subsidy decided on annual basis, is provided on each grade of subsidized Phosphatic & Potassic (P&K) fertilizers of FCO standards, depending upon its Nutrient Content. (PIB Inputs)