Lok Sabha Question No. 35 (STARRED), answered on 2017-07-18
Subject: Urea Import
Ministry: CHEMICALS AND FERTILIZERS
Asked by: DHANANJAY BHIMRAO MAHADIK, A. ARUNMOZHITHEVAN

## GOVERNMEN T OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF FERTILIZERS

## LOK SABHA

## STARRED QUESTION NO *35

## TO BE ANSWERED ON:  18.07.2017 UREA IMPORT

## *35: SHRI DHANANJAY MAHADIK:

SHRI A. ARUNMOZHITHEVAN :

Will the Minister of CHEMICALS & FERTILIZERS be pleased to state:

- (a) the quantum of urea imported by India during the last three years along with the  estimated  quantum  of  urea  likely to  be  imported  and  the  funds earmarked for the purpose during 2017-18;
- (b) whether the Government has any plan to reduce the consumption of urea in the country, if so, the details thereof and the reasons therefor;
- (c) whether the Government also proposes to bring urea bags in 45 kg instead of 50 kg, if so, the details thereof and the reasons therefor; and
- (d) the  steps  taken  by  the  Government  to  increase  urea  production  including revival of closed urea manufacturing plants in the country?

## ANSWER

MINISTER OF CHEMICALS & FERTILIZERS AND PARLIAMENTARY AFFAIRS

(SHRI ANANTH KUMAR)

(a) to (d):     A Statement is laid on the Table of the House.

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PART  (A)  TO  (D)  OF  THE  LOK SABHA STARRED QUESTION NO. *35 FOR REPLY ON 18.07.2017 REGARDING 'UREA IMPORT'.

(a): The quantum of urea imported during the last three years are as below:

## Qty in Lakh MT

|   Year |   From OMIFCO |   Through STE | Total   |
|--------|---------------|---------------|---------|
|  14.63 |         72.86 |         87.49 | 2014-15 |
|  20.78 |         63.96 |         84.74 | 2015-16 |
|  20.02 |         34.79 |         54.81 | 2016-17 |

The quantity of urea likely to be imported during the current year may remain at last year's level i.e. 55 Lakh MT, if the requirement remains constant at last year's level. The funds earmarked for this purpose is  Rs.14,000 crore during 2017-18.

(b) & (c): Subsequent  to  introduction  of  Neem  coating  of  urea,  it  has  been reported from the field that this initiative has been well received by farmers. One of the primary benefits of Neem coating is that due to slow release of the nitrogen, the consumption of neem coated urea reduces as compared to uncoated urea. Further, since  farmers  mostly  assess  the  requirement  of  urea  in  terms  of  bags  for agriculture purpose, it is felt that if the urea is made available in 45 Kg bags instead of 50 Kg, the consumption of urea may further come down which will also lead to balanced  fertilization  and  also  increase  the  yield  in  the  range  of  7  to  12%  in different crops. This proposal is currently under examination in the Department.

(d): The Government has notified New Investment Policy- 2012 on 2 nd January, 2013 and its amendment on 7 th October, 2014 to facilitate fresh investment in urea sector and to make India self-sufficient in the urea. The Government of India has also notified the New Urea Policy (NUP)-2015 on 25 th May, 2015 for existing 25 gas based  urea  units  with  the  objectives  of  maximizing  indigenous  urea  production; promoting energy efficiency in urea production; and rationalizing subsidy burden on the  government.  NUP-2015  has  led  to  additional  production  of  approximately  20 LMT as compared to 2014-15, from the existing gas based urea plants and the total production of urea during the year 2015-16 was 244.5 LMT, i.e. the highest ever urea  production  in  the  country.  The  indigenous  production  during  2016-17  was 242.01 LMT.

Government of India has  also  taken  the  lead  in  augmenting  production  of urea in the country by reviving five old urea plants of FCIL/HFCL at Ramagundam, Barauni, Sindri, Gorakhpur and Talcher by setting new urea plants of 1.27 million MT each.

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