Lok Sabha Question No. 2404 (UNSTARRED), answered on 2019-12-03
Subject: Transportation of  Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Bharatiben Dhirubhai Shyal

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2404 TO BE ANSWERED ON : 03.12.2019

## Transport of fertilizer

## 2404, DR: BHARATIBEN DHIRUBHAI SHIYAL:

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

- (a) whether the Government has  introduced any scheme for  transportation of fertilizers through coastal shipping in the country;
- (b) if so, the details thereof;
- (c) the details of volume and destination of various fertilizers transported in the country through coastal shipping;
- (d) whether the Government has sturted any platform for monitoring the supply and availability of fertilizers in the country and if s0, the details thereof; and
- (e) whether the State Governments are monitoring the availability and supply cf fertilizers and if s0, the details thereof?

## ANSWER MINISTER OF CHEMICALS & FERTILIZERS

## (SHRI D V SADANAND GOWDA)

(a) & (b): Sir . There is a policy for reimbursement of freight  subsidy for distribution of subsidized fertilizers through Coastal Shipping orland Inland Waterways. The details of the scheme is placed at Annexure-A Yes,

- (c): As far as Urea is concerned, as on date, Ms. IFFCO Phulpur-Il has dispatched 119.880 MTs from IFFCO Phulpur-II (Plant) to Howrah (West Bengal) by sea during the month of December, 2018. Fertilizers the requisite details regarding quantity and destination of various types of fertilizers transported in the country through coastal shipping, company-wise and product-wise during the financial year 2017-18 and 2018-19 is attached at Annexure-B.
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## No. 23011/10/2016-MPR Government of India Department o; Fertilizers

## QFFICE MEMORANDUM

Sub: Policy for reimbursement of freight subsidy for distribution of Subsidised fertilizers through Coastal Shipping or/and inland waterways;

In supersession of this Department' s No\_ 12018/11/2007-FPP dated & 14.07.2010 and OMs of even number dated 13.10.2016 & 29.03.2017 on the subject mentioned: above, the undersigned is directed to convey the decision of the Competent Authority to allow movement of fertilisers through Coastal Shipping/lnland waterways alongwith the Road movement that follow the Coastal Movement/Inland Water movement upto the rake point in the destination district to make it qualify for reimbursement of freight subsidy under the primary movement: The Primary movement will refer to movement of subsidised fertilisers by rail and/or coastal shipping/inland water transportation including road bridging (only in case of use of Coastal Shipping or inland waterways) upto the rake point in the destination district or by any or two or by all three modes of transportation from the plant or port to various rake points in the destination districts: The salient features of the policy for reimbursement of freight claims of the companies coastal shipping/inland waterways for the movement of fertilizers are as under: using

- Only the movement of subsidised indigenous fertilizers (Urea and P&K fertilizers) through coastal shipping/inland Waterways will be eligible for the payment of freight subsidy at this stage.
- (ii) As the movement of only domestic fertilizers will be eligible for freight subsidy payment; there is no need of checking the port clearance certificate issued by Custom authorities.
- (iii) In case of single mode or multi modal  transportation of fertilizers which includes coastal shipping the -freight subsidy for movement of fertilizers will be restricted to the railway charges or actual freight incurred whichever is less also,
- (iv) For claiming freight subsidy in case of multimodal transportation of fertilizers, which includes movement through coastal shipping/ inland waterways also, the fertilizer companies will submit the multimodal transportation bill duly certified by the statutory auditors. Such bills duly certified by Statutory Auditors of the companv would be treated as sufficient proof of actual freight charges incurred by fertilizer companies

The authenticity of the actual cost claims lies entirely with the party e making the claims. false declaration before the public servant regarding such costs shall attract criminal/ civil action under appropriate legal provision. Any

- The companies will submit the nearest rake point in the destination point; equivalent lead railway distance to the nearest rake point in the destination district with the actual railway freight rates for the said lead distance for calculating the equivalent railway freight subsidy of fertilizers. along

Shastri Bhawan, New Delhi Dated: 17 June, 2019.

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## To:

- 1 \_ Secretary, Dlo Shipping; Transport Bhawan;, New Delhi.
- 2 Joint Secretary (INM) , DAC, Krishi Bhawan, New Delhi
- 3\_
- ED, FICC DoF,
- 5 Chief Controller of Accounts, DoF , Janpath Bhawan, New Delhi:

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## OFFICE MEMORANDUM

Sub: Policy for   reimbursement of  freight  subsidy for distribution of Subsidised fertilizers through Coastal Shipping orland inland waterways:

In continuation of this Department's OM of even No. dated 17.06.2019 on the above cited subject, following clarification are issued in respect of secondary freight subsidy on distribution of subsidized fertilizers through Coastal Shipping orland inland waterways: being

- If a manufacturer is   moving the fertilisers  through multi-modal transportation, which includes coastal shipping/ inland waterways, and the manufacturer decides to move the fertiliser from the discharge port directly to the destination district by road, then the entire multi-modal   freight would be considered as primary movement and freight subsidy would be restricted to the railway charges or the actual freight incurred whichever is less as given in Order No\_ 23011/10/2016 MPR dated 17th June, 2019. In such cases there is no scope of secondary movement and hence, no scope of secondary freight subsidy payment
- (ii) In case, the fertilizer company chooses to transport fertilizers from unloading port to the nearest rake point in destination district by railway and then transports fertilizers further by road, the entire multi-modal transport up to the railway rake point would be treated as primary movement and road movement beyond rake point would be treated as secondary moveinent: The restriction on freight subsidy for secondary transport of Urea would remain as per extant policies and freight subsidy for  secondary movement for PeK fertilizers would continue to be inadmissible as per extant policies in this regard.
- 2 This issues with the approval of Hon'ble Minister (C&F).

Geeta Mishra Under Secretary to the Govt of India Ph: 23386151

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Shastri Bhawan; New Delhi

Dated: 18 September; 2019

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| Company   | Financial        | Product        | Product      | Product   | Product   |       |
|-----------|------------------|----------------|--------------|-----------|-----------|-------|
|           | State District   | NPK 20:20:0:13 | NPK 10.26.26 | NPK       | DAP       | Total |
| IFFCO     | Kerala           |                |              |           |           |       |
|           | Ernakulam        | 0.004          | 0.009        |           |           | 0.013 |
|           | Idukki           |                | '0.011       |           |           | 0.011 |
|           | Kottayam         | 0.006          | 0.029        |           |           | 0.035 |
|           | Kozhikode        | 0.002          | 0.017        |           |           | 0.019 |
|           | Palakkad         | 0.006          | 0.008        |           |           | 0.014 |
|           | Thrissur         | 0.005          | 0.008        |           |           | 0.013 |
|           | Tamil Nadu       |                |              |           |           |       |
|           | Coimbatore       | 0.011          |              |           |           | 0.011 |
|           | Cuddalore        | 0.015          | 0.006        |           |           | 0.021 |
|           | Dharmapuri       | 0.000          | 0.001        |           |           | 0.001 |
|           | Dindigul         | 0.000          |              |           |           | 0.000 |
|           | Erode            | 0.000          |              |           |           | 0.000 |
|           | Kanchipuram      | 0.011          |              |           |           | 0.011 |
|           | Kanniyakumari    | 0.000          |              |           |           | 0.000 |
|           | Karur            | 0.000          |              |           |           | 0.000 |
|           | Krishnagiri_     | 0.002          |              |           |           | 0.002 |
|           | Madurai          | 0.005          |              |           |           | 0.005 |
|           | Namakkal         | 0.006          |              |           |           | 0.006 |
|           | Perambalur       | 0.003          |              |           |           | 0.003 |
|           | Pudukkottai      | 0.004          |              |           |           | 0.004 |
|           | Salem            | 0.020          |              |           |           | 0.020 |
|           | Sivaganga        | 0.000          |              |           |           |       |
|           | Theni            | 0.003          |              |           |           | 0.003 |
|           | Thiruvallur      | 0.011          | 0.001        |           |           | 0.012 |
|           | Thoothukkudi     | 0.002          |              |           |           | 0.002 |
|           | Tiruchirappalli_ | 0.013          |              |           |           | 0.013 |
|           | Tirunelveli      | 0.002          |              |           |           | 0.002 |
|           | Tiruppur         | 0.005          |              |           |           | 0.005 |
|           | Tiruvannamalai   | 0.019          | 0.007        |           |           | 0.026 |
|           | Vellore          | 0.005          | 0.007        |           |           | 0.012 |
|           | Villupuram       | 0.015          | 0.006        |           |           | 0.021 |
|           | Virudhunagar     | 0.002          |              |           |           | 0.002 |
|           | West Bengal      |                |              |           |           |       |
|           | 24ParaganasNorth |                | 0.029        |           |           | 0.029 |
|           | 24ParaganasSouth |                | 0.003        |           |           | 0.003 |
|           | Bankura          |                | 0.097        |           |           | 0.097 |
|           | Bardhaman        |                | 0.173        |           |           | 0.173 |
|           | Birbhum          |                | 0.030        |           |           | 0.030 |
|           | Hooghly          |                | 00.130       |           |           | 0.130 |
|           | Howrah           |                | 0.005        |           |           | 0.005 |
|           | Medinipur        |                | 0.025        |           |           | 0.025 |
|           | MedinipurEast    |                | 0.042        |           |           | 0.042 |
|           | MedinipurWest    |                | 0.097        |           |           | 0.097 |
|           | Murshidabad      |                | 0.044        |           |           | 0.044 |
|           | Nadia            |                | 0.025        |           |           | 0.025 |
|           | Purulia          |                | 0.006        |           |           | 0.006 |

ANNEXURE B (Qty\_in LMT)

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|       |             |       |       | XIYSEN          |
|-------|-------------|-------|-------|-----------------|
| soo 0 |             |       |       | JeqinpueN       |
| Loo 0 |             |       |       | ainya           |
| 000'0 |             |       |       |                 |
| 610'0 |             | 800*0 | 900'0 | Jnssuyl         |
|       |             |       | Llo'0 | pexxeied        |
| 890'0 |             |       | 800*0 | wuekenoy        |
| Loo 0 |             |       |       | pobeJesex       |
| 1oo 0 |             |       |       | Jnuuex          |
|       |             | 610*0 |       |                 |
| 810*0 | 000 0       | 810*0 |       |                 |
|       |             | 920*0 |       | ebolys          |
|       |             |       |       | ejebeueuey      |
| 010*0 |             | Loo 0 |       |                 |
|       |             |       |       | expuew          |
| 8+0*0 | 810'0       |       |       |                 |
|       |             |       |       | Jeiox           |
| 800*0 |             |       |       | nbepox          |
|       |             |       |       | uesseh          |
| 900'0 |             |       |       | pemeya          |
|       |             | 9z0'0 |       | ajabuenea       |
|       |             | 620*0 |       |                 |
| 810*0 |             |       |       | ebunpeny        |
|       |             |       |       | Jnjebeuxyo      |
|       |             |       |       | undela          |
|       |             |       |       | uequn nunjebuaa |
| ZZo 0 |             | 910*0 |       |                 |
|       | LO 0        |       |       |                 |
| 010'0 | 1oo 0       | 010*0 |       |                 |
|       | ZZo 0       | 010*0 |       |                 |
|       |             |       |       | pesieA          |
|       | Loo 0       |       |       | IdeL            |
| 810'0 | Llo 0       |       |       |                 |
| zoo'0 | Zoo 0       |       |       | HESAEN          |
|       |             |       |       | yonueyg         |
| 000'0 | 000*0 000*0 | 918*0 |       | Jejeins [eol    |

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| Pune               |        | '0.006   |       |       |   0.006 |
|--------------------|--------|----------|-------|-------|---------|
| Tamil Nadu         |        |          |       |       |   0     |
| Ariyalur           | 0.000  |          |       | 0.000 |   0.001 |
| Coimbatore         | 0.014  | 0.047    |       | 0.032 |   0.092 |
| Cuddalore          | 0.042  | 0.012    |       | 0.038 |   0.092 |
| Dharmapuri_        | 0.006  | 0.008    |       | 0.010 |   0.024 |
| Dindigul           | 0.002  |          |       | 0.001 |   0.003 |
| Erode              | 0.031  | 0.013    |       | 0.031 |   0.075 |
| Kanchipuram        | 0.002  |          |       |       |   0.002 |
| Karur              | 0.000  |          |       | 0.000 |   0.001 |
| Krishnagiri_       | 0.005  | 0.001    |       | 0.008 |   0.014 |
| Madurai            | 0.024  | 0.004    |       | 0.014 |   0.042 |
| Nagapattinam       | 0.001  |          |       | 0.011 |   0.012 |
| Namakkal           | 0.001  | 0.006    |       | 0.000 |   0.008 |
| Perambalur         | 0.000  |          |       |       |   0     |
| Pudukkottai        | 0.011  | 0.002    |       | 0.009 |   0.022 |
| Salem              | 0.018  | 0.071    |       | 0.025 |   0.114 |
| Sivaganga          | 0.006  |          |       | 0.004 |   0.01  |
| Thanjavur          | 0.011  | 0.002    |       | 0.018 |   0.031 |
| Theni              | 0.017  | 0.007    |       | 0.011 |   0.035 |
| Thiruvallur        | 0.029  | 0.007    |       | 0.021 |   0.056 |
| Thiruvarur         | 0.009  | 0.001    |       | 0.020 |   0.03  |
| Thoothukkudi       | 0.017  | 0.011    | 0.003 | 0.021 |   0.053 |
| Tiruchirappalli    | 0.067  | 0.020    |       |       |   0.121 |
| Tirunelveli        | 0.004  | 0.010    |       | 0.017 |   0.03  |
| Tiruppur           | 0.003  | 0.004    | 0.001 | 0.005 |   0.013 |
| Tiruvannamalai     | 0.067  | 0.027    |       | 0.052 |   0.146 |
| Vellore            | 0.028  | 0.018    | 0.001 | 0.027 |   0.073 |
| Villupuram         | 0.043  | 0.016    |       | 0.035 |   0.094 |
| West Bengal        |        |          |       |       |   0     |
| 24 Paraganas North |        | 0.036    |       |       |   0.036 |
| 24 Paraganas South | 0.007  |          |       |       |   0.007 |
| Bankura            | 0.165  |          |       |       |   0.165 |
| Bardhaman          | 0.184  |          |       |       |   0.184 |
| Birbhum            | 0.071  |          |       |       |   0.071 |
| Hooghly            | 0.178  |          |       |       |   0.178 |
| Howrah             | 0.024  |          |       |       |   0.024 |
| Medinipur East     | '0.033 |          |       |       |   0.033 |
| Medinipur West     | 0.168  |          |       |       |   0.168 |
| Murshidabad        | 0.050  |          |       |       |   0.05  |
| Nadia              | 0.026  |          |       |       |   0.026 |
| Purulia            | 0.006  |          |       |       |   0.006 |
| Total              | 0.504  | 1.871    | 0.108 | 0.493 |   2.975 |