Fertilizer Subsidy

                 

 

Fertilizer Subsidy Division:

The Fertilizer Subsidy Division (Previous name- Fertilizer Accounts Division) is headed by Joint Secretary who is assisted by a Director (FS).  Fertilizer Subsidy Division deals with payment of cost of imported urea of OMIFCO/Canalizing agencies, recovery of Pool issue price of urea from Handling Agencies, Ocean freight payments to vessel owners, subsidy disbursement in respect of Imported Urea, Indigenous & Imported P & K fertilizers, SSP and City Compost including freight subsidy, Administrations of FMS and iFMS, reimbursement of freight, insurance charges, custom duty, handling charges etc.  The subsidy is paid on fertilizers sold for direct Agriculture uses.

Work Allocation of Fertilizer Subsidy Division:

A. Fertilizer Subsidy (Imported) Wing:- 

(i)                Release of subsidy under DBT in respect of Imported P&K, MOP and Imported Urea.  Under DBT system, 100% subsidy on various fertilizer grades are released to the fertilizer companies on the basis of actual sales made by the retailers to the beneficiaries.

(ii)              Imported P&K Fertilizers:– Release of ‘On Account’ 85%(without bank guarantee)/90%(with bank guarantee) subsidy payment and ‘Balance’ 15%/10% subsidy claims and Freight Subsidy claims under Nutrient Based Subsidy Scheme.

(iii)            Imported Urea:– Payment of 100% Import Cost of Urea, 98% Advance Claim and 2% Balance Claim of Import Cost of Pooled Urea and Settlement of 90% Advance and 10% Ocean Freight Claims.

(iv)            Maintenance of Master Control Register(MCR)

(v)              Management of iFMS (Integrated Fertilizer Management System)

B.  Fertilizer Subsidy (Indigenous) Wing:-

(i)                Release of subsidy under DBT in respect of Indigenous P&K, DAP and SSP.  Under DBT system, 100% subsidy on various fertilizer grades are released to the fertilizer companies on the basis of actual sales made by the retailers to the beneficiaries.

 

(ii)              Indigenous P&K Fertilizers - Release of ‘On Account’ 85% (without bank guarantee)/90%(with bank guarantee) subsidy claims and ‘Balance’ 15%/10% subsidy claims and Freight Subsidy claims under Nutrient Based Subsidy Scheme.

(iii)            Indigenous SSP Fertilizers - Release of ‘On Account’ 85% (without bank guarantee)/90% (with bank guarantee) subsidy claims and ‘Balance’ 15%/10% subsidy claims and Freight Subsidy claims under Nutrient Based Subsidy Scheme.

(iv)            City Compost – Release of ‘On Account’ 50% subsidy claims and ‘Balance’ 50% subsidy claims.

 

C.  Miscellaneous works of Fertilizer Subsidy(Indigenous) wing & Fertilizer Subsidy (Imported) wing):-

 

(i)               Internal/CAG Audit Paras/ATNs /Public Accounts Committee Reports/Standing Committee Reports.

(ii)             Parliament Questions/Assurances

(iii)          RTI Matters

(iv)           Court cases

(v)             Preparation of Budget Estimates/Revised Estimates/Outcome budget

(vi)           Submission of Weekly/Monthly/Quarterly/Half-yearly/Annual Reports

(vii)        Coordination with other Divisions of DoF and submission of various reports

D.  Fertilizer Industries Coordination Committee (FICC):- 

(i)                Release of subsidy under DBT in respect of Indigenous Urea.  Under DBT system, 100% subsidy on various fertilizer grades are released to the fertilizer companies on the basis of actual sales made by the retailers to the beneficiaries.

(ii)              Settlement of “95% On-A/c”, “5% Balance Payment”, Freight Subsidy, Escalation/De-Escalation claims in respect of Indigenous Urea and consequential recoveries from the urea manufacturing units.

(iii)            Preparation of Budget Estimates and Revised Estimates for subsidy on Indigenous Urea.

(iv)            Preparation of Monthly Budget for release of subsidy during a particular month.

(v)              Reconciliation of expenditure with PAO.

(vi)            Furnishing of data relating to Parliament/Standing Committee Questions.

(vii)          Work relating to Internal/CAG Audit Paras /ATNs.

(viii)        Work relating to collection and disbursement of amount under ACTN.

(ix)            Outcome Budget, RTI cases, Review/Weeding out /Maintenance of Records/files and other works.

 

 

Fertilizer Monitoring Systems of Fertilizer Subsidy Division for processing Subsidy Claims:

 

The mandate of the Department of Fertilizers is to make available fertilizers to the farmers at affordable prices.  The affordable prices part of the mandate gets translated into subsidised fertilisers.  The subsidy portion of fertilizers which ranges from 30% to 70% of the cost of the fertilizers is given to the companies, so as to make available fertilizers for the farmers at subsidized MRPs.  The requirement of fertilizers is projected by the state governments to the Department of Agriculture & Cooperation which in turn, coordinates with DoF for finalizing the requirement of fertilizers in the country.  With the objective to monitor the import, production and movement of various subsidized fertilizers and processing subsidy claims, different software systems were introduced by DOF viz FMS, mFMS and iFMS.

 

(i)                Fertilizer Management System (FMS): The department of Fertilizers implemented the FMS in May 2007 with an aim to track movement of fertilizers in the country.  It monitors the production, dispatches, receipts and sales of DAP, MOP, SSP, NPK and Urea (Indigenous and Imported) fertilizers from point of production to district warehouses.  The system at present is being used for tracking movement from plant/port till district level with relevant documentary evidence.

 

(ii)              Mobile Fertilizer Management System (mFMS):  To achieve more visibility and transparency in the fertilizer supply chain from production to receipt at the last point sale (retail point), the mFMS was introduced in the year 2012.  The subsidised fertilizers namely Urea and 21 grades of Phosphatic and Potassic (P&K) fertilizers like DAP, MAP, TSP, MOP, Ammonium Sulphate, SSP and 15 grades of NPKS complex fertilizers are covered under the mFMS.  Mobile Fertilizer Management System (mFMS) has been rolled out through all the registered fertilizers manufacturers (172), wholesalers (24149) and retailers (298729) across the country.  Mobile Fertilizer Management System (mFMS) was proposed as an extension of FMS and it captures the movement of fertilisers from district up to the retailer. It was envisaged that mFMS will capture sales at the last mile from the location (retailer in this case), maintain inventories such that it will help retailers/ dealers in their day to day working and build the farmer database with an aim to ultimately transfer the subsidy.

 

(iii)            Integrated Fertilizer Management System (iFMS): Integrated Fertilizer Management System (iFMS) is fully operational w.e.f. 1st September, 2016 which is more comprehensive, all-inclusive system which integrated, incorporates and enhances the features of both earlier systems i.e. FMS and mFMS. 

 

 

 

The functionalities of iFMS System:

 

  • Transactions:  iFMS captures the transactional details entered by the companies on a daily basis and the system always provides latest information to DOF and State Government relating to - Import of raw material/finished goods, Custom clearance, Receipts of plant, Production, Dispatches from Plant and Ports and Returns, Receipts, Sales, Warehouses details, Wholesalers details and Claim generation. These transactions in the system capture information in detail and facilitate the department in monitoring the movement of fertilizers and settlement of claims.
  • Subsidy Claims & Freight Subsidy:  The subsidy & freight claims are generated by the companies on the system and submitted to DoF.
  • Provision has been made for the state agriculture department officials to enter the- Receipts made in their states, Substandard or short quantity and certify and upload the Proforma B directly on the system, and Provision has also been made to upload quality certificate (Proforma B2) by the state governments.
  • Public Domain:  The public domain of the system is www.mfms.nic.in.  various reports are available here for viewing, with regard to state-wise, district wise and company-wise dispatch and receipts of various grades of fertilizers.
  • Production and Movement of SSP:  Around 108 companies manufacturing and supplying SSP in the country are entering their transactions on the system.
  • The MIS(Management Information System) provided on iFMS gives up to date information about the fertilizers.  Some of the indicative reports are:

 

  • State-wise/District-wise/Finished Good-wise/Dispatch Report
  • State-wise/District-wise/Finished Good-wise/Sale Report
  • District-wise-distribution wise sale Report
  • Supply Plan Vs Actual Receipts
  • Requirement Vs Supply Plan

 

 

 

Budget Estimate for the financial year 2018-19:

                                    (Rupees in Crores)

Particulars

Budget for 2018-19

Imported Urea

13360.00

Indigenous Urea

34989.50

Imported P&K

9260.00

Indigenous P&K

15820.35

City Compost

10.00