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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, 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.    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 pertaining to pre DBT period. After the pan India roll out of DBT scheme, 100% subsidy on various fertilizer grades of P&K are released to the fertilizer companies on the basis of actual sales made by the retailers to the beneficiaries.

II.    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.

III.    Maintenance of Master Control Register(MCR)

B.  Fertilizer Subsidy (Indigenous) Wing:-

I.    Release of subsidy under DBT in respect of Indigenous P&K, DAP and SSP and City Compost-  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.    Preparation of Budget Estimates/Revised Estimates/Outcome budget

II.    Preparation of Monthly Budget for release of subsidy during a particular month.

III.    Reconciliation of expenditure with PAO

IV.    Internal/CAG Audit Paras/ATNs /Public Accounts Committee Reports/Standing Committee Reports.

V.    Parliament Questions/Assurances

VI.    RTI Matters

VII.    Court cases

VIII.    Submission of Weekly/Monthly/Quarterly/Half-yearly/Annual Reports

IX.    Coordination with other Divisions of DoF and submission of various reports

Budget Estimate for the financial year 2020-21:

Scheme

BE (Rs in crores)

Imported Urea

12050

Indigenous Urea

 

Imported P&K

9296

Indigenous P&K

14179

City Compost

29

Note: information relating to FICC and iFMS can be provided by the controlling Divisions