Skip to main content
G20 Swachhta Bharat Mission Make in India 150 years of celebrating the Mahatma Skoch Gold Award Digital India Award

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 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) Division:- 

 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. Recovery of Cost of Cargo, settlement of Debit note in r/o import of urea vessels, release of 5%, balance custom duty, and balance Inland Freight claim etc.

IV.    Maintenance of Master Control Register (MCR)

B.  Fertilizer Subsidy (Indigenous) Division:-

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

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