Lok Sabha Question No. 447 (UNSTARRED), answered on 2019-06-25
Subject: Fertilizer Production
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Gitaben Vajesingbhai Rathva

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

## LOK SABHA

UNSTARRED QUESTION NO. 447 TO BE ANSWERED ON: 25.6.2019

## FERTILIZER PRODUCTION

## 447 SHRIMATI RATHVA GITABEN VAJESINGBHAI:

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

- (a) the estimated annual demand and indigenous production of fertilizers in the country;
- (c) whether the Government proposes to increaselexpand publiclprivate investment in fertilizer sector; and
- (b) the steps taken by the Government to meet the domestic requirement  of fertilizers;
- (d) if the details thereof and if not, the reasons therefor? SO,

## ANSWER

## MINISTER OF CHEMICALS & FERTILIZERS

## (D.V. SADANANDA GOWDA)

- (a): Department of Agriculture Cooperation & Farmers Welfare (DAC&FW) in consultation with Statesl UTs assesses the requirement of all subsidised fertilizers before the start of each Season: The estimated demand of fertilizers in the country for the ongoing season i.e Kharif 2019-20 (April'19- September'19) is as follows: Sir,

| Projected requirement of fertilizers in the country   | Projected requirement of fertilizers in the country   |
|-------------------------------------------------------|-------------------------------------------------------|
|                                                       | <Figures in LMT>                                      |
| AII Indial Kharif 2019-20                             | Kharif 2019                                           |
| Urea                                                  | 156.72                                                |
| Pek                                                   | 124.57                                                |
| Total                                                 | 281.29                                                |

Source: iFMS.

The requirement for Rabi 2019-20 is not projected by DAC&FW. However, the demand for Rabi 2018-19 is as follows:yet

| Projected requirement of fertilizers in the country   | Projected requirement of fertilizers in the country   |
|-------------------------------------------------------|-------------------------------------------------------|
|                                                       | <Figures in LMT>                                      |
| AII Indial Rabi 2018-19                               | Rabi 2018-19                                          |
| Urea                                                  | 151.13                                                |
| P&k                                                   | 113.71                                                |
| Total                                                 | 264.84                                                |

Source: iFMS.

The estimated indigenous production of fertilizers in the country for the current year i.e April 2019 to March'20 is as follows:

| Estimated Indigenous production of all major fertilizers during 2019-20   | Estimated Indigenous production of all major fertilizers during 2019-20   | Estimated Indigenous production of all major fertilizers during 2019-20   | Estimated Indigenous production of all major fertilizers during 2019-20   |
|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|
|                                                                           |                                                                           |                                                                           | <figures in LMT>                                                          |
| 2019-20                                                                   | 266.40                                                                    | 47.63                                                                     | 100.76                                                                    |

(b): Following steps have been taken by Government to meet the demand of fertilizers in the country:

- 1\_ Before the commencement each cropping season, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) , after consultation with all the State Governments, assesses the requirement of fertilizers. After assessment of  requirement; DAC&FW projects month-wise   requirement of fertilizers.
- 2 At present;, there are 31 operating urea manufacturing units in the country with an installed capacity of around 220 LMT of urea: The requirement of urea as assessed by DAC&FW in consultation with State Governments is met through the indigenous   production by these urea units. The gap between demand (requirement) and supply through indigenous production, is met through imports. The import for the season is also finalised well in advance to ensure timely availability.
- 3 On the basis of month-wise & state-wise projection given by DAC&FW Department of Fertilizers allocates sufficientl adequate quantities of fertilizers to States by issuing monthly supply plan and distribution within the State is

the responsibility of the concerned State Government: Further, the availability of fertilizers is continuously monitored through following system:

- a The movement of all major subsidized fertilizers monitored throughout the country by an on-line web based  monitoring system called integrated Fertilizer Monitoring System (iFMS);
- b The State Governments are regularly advised to coordinate with manufacturers and importers of fertilizers for streamlining the supplies through timely placement of indents for railway rakes through their state institutional agencies like Markfed etc.
- C Regular Weekly Video Conference is conducted jointly by Department of Agriculture & Cooperation and Farmers Welfare (DAC&FW) , and Ministry of Railways with State Agriculture Officials and corrective actions are taken to dispatch fertilizer as indicated by the State Governments.

Thus, with the steps as indicated above, Department of Fertilizers ensures availability of fertilizers at the State level and the distribution to the farmers within the State is the responsibility of the respective State Government.

(c) & (d): Thie Government of India is reviving 5 closed fertilizer plants of Fertilizer Corporation of India Ltd. (FCIL) and Hindustan Fertilizer Corporation Ltd. (HFCL) namely Talcher, Ramagundam, Gorakhpur and Sindri plants of FCIL and Barauni plant of HFCL by setting up new Ammonia Urea plants of 12.7 Lakh metric tonne per annum capacity: These projects upon implementation/ operationalization will bridge the gap between demand and supply of urea in the country, and will rejuvenate the fertilizer sector. Subsequent to commissioning/ start of the above plants, the indigenous urea production will be enhanced by 63.5 Lakh Metric Tonne per year leading to corresponding reduction in import of urea.

Government of India has also proposed to set up a new Ammonia-Urea Plant at Brahmaputra Valley Fertilizers  Corporation Limited (BVFCL), Namrup-IV having capacity of 12.70 LMT or Urea through nomination (PSU) route.