Lok Sabha Question No. 5100 (UNSTARRED), answered on 2018-03-27
Subject: Fertilizer Requirement
Ministry: CHEMICALS AND FERTILIZERS
Asked by: G. HARI

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF FERTILIZERS

## LOK SABHA

## UNSTARRED QUESTION NO. 5100 ANSWERED ON. 27.03.2018

## Fertilizer Requirement

## 5100.   SHRI G. HARI:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:-

- (a) whether  it  is  true  that  the  fertilizer  requirement  has  increased  to  320  lakh tonne annually;
- (b) whether  the  annual  fertilizer  production  from  operating  fertilizer  plants  has been ramped up from 225 lakh tonne to 245 lakh tonne without additional investment;
- (c) whether  neem  coating  of  urea  has  been  introduced  to  raise  fertilizer efficiency and reduce consumption by 32 lakh tonne per year; and
- (d) if so, the details thereof?

## ANSWER

MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  FOR  THE  MINISTRY  OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS

## ( RAO INDERJIT SINGH )

(a): The requirement, availability & sales of Urea fertilizer during the last three years and current year upto 22.03.2018 are given in the table below:

## <Figures in LMT>

| Year                       | Requirement   | Availability   | Sales   |
|----------------------------|---------------|----------------|---------|
| 306.71                     | 310.42        | 308.74         | 2014-15 |
| 313.35                     | 329.00        | 319.68         | 2015-16 |
| 289.09                     | 309.08        | 296.07         | 2016-17 |
| 2017-18 (as on 22.03.2018) |               | 304.81 293.14  | 298.52  |

(b): The  actual  production  of  Urea  fertilizer  during  the  last  three  years  and current year (estimated) is given in the table below:

## <Figures in LMT>

| Product   |   2014-15 |   2015-16 |   2016-17 |   2017-18 (estimated) |
|-----------|-----------|-----------|-----------|-----------------------|
| Urea      |    225.85 |    244.75 |    242.01 |                239.04 |

It  is  mentioned  here  that  based  on  CCEA  decision,  vide  notification  dated 25 th May,  2015,  Department  of  Fertilizers  has  notified  New  Urea  Policy  -  2015 (NUP-2015)  effective  from  1 st June,  2015,  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 244.75 LMT of  urea  during  the  year  2015-16  i.e.,  the  highest  ever  urea  production  in  the country.

(c) & (d): Vide notification dated 25 th May, 2015 Department of Fertilizers has made  it  mandatory  for  all  the  domestic  producers  of  urea  to  produce  100% as Neem  Coated  Urea with  an  extra  MRP  of  5%  (of  Rs.  5360/-  per  MT)  to  be charged  by  the  fertilizer  manufacturing  entities  from  farmers.  Entire  quantity  of indigenously  produced  urea  and  imported  urea  is  being  neem  coated  w.e.f  1 st September, 2015 and w.e.f 1 st December, 2015 respectively.  Mandatory coating of indigenous/imported urea has been well received by the farmers. Due to its slow release  of  Nitrogen,  the  Nitrogen  Use  Efficiency  (NUE)  of  Neem  Coated  Urea increases  resulting  in  reduced  consumption  of  Neem  Coated  Urea  (NCU)  as compared to Normal urea. Since farmers mostly assess the requirement of urea in terms of bags for agricultural purpose, vide notification dated 4 th September, 2017, Department has decided to introduce 45 kg bag of urea in place of existing 50 kg bag.  Department of  Agriculture,  Cooperation  &  Farmers Welfare (DAC&FW) was entrusted to conduct a study to determine the impact of Neem Coated Urea. The interim  report  prepared  by  Agricultural  Development  and  Rural  Transformation Centre (ADRTC), Bengaluru has been submitted by DAC&FW.  The brief findings of study conducted are as follows:

- I. Improvement in soil health.
- II. Reduction in costs with respect to plant protection chemicals
- III. Reduction in pest and disease attack
- IV. An increase in yield of paddy to an extent of 5.79 per cent.
- V. An increase in yield of sugarcane to extent of 17.5 per cent
- VI. An increase in yield of maize to the extent of 7.14 per cent
- VII. An increase in yield of Soybean to the extent of 7.4 per cent
- VIII. An increase in yield of Tur/Red Gram to the extent of 16.88 percent.
- IX. Diversion of highly subsidized urea towards non-agricultural purposes negligible among farmers after the introduction of the mandatory policy of production and distribution of only neem coated urea.

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