Lok Sabha Question No. 2633 (UNSTARRED), answered on 2019-07-09
Subject: Import of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Ramdas Chandrabhanji Tadas

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

## LOK SABHA

## UNSTARRED QUESTION NO.2633+ TO BE ANSWERED ON 09.07.2019

## Import of Fertilizers

## +2633: SHRI RAMDAS C TADAS:

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

- (a) the Goverriment's policy regarding import of fertilizers;
- (b) the names of the importing companies and the details of the countries and the quantum and price of the fertilizers imported during each of the last three years and the current year;
- (c) whether  appropriate testing  facilities are available in the country to test these fertilizers regarding the conformity to international standards and if So, the details thereof;
- (d) the manner in which the monitoring mechanism is working to test the quality of fertilizers being imported by the said companies; and
- (e) the important decisions taken by the Government   during the said   period to make the country self sufficient in the production of fertilizers?

## ANSWER

## MINISTER OF CHEMICALS AND FERTILIZERS (SHRI DVSADANANDA GOWDA)

(a): The import of urea for direct agriculture use is made on Government account to bridge the gap between assessed demand and indigenous production. Urea for direct agriculture use is imported on Government account through State Trading Enterprises (STEs) namely MMTC Limited (MMTC) and State Trading Corporation Limited (STC) under the Foreign Trade  Policy of the Government: Government is also  importing approximately 20 Lakh Metric Tonnes urea from Oman India Fertiliser   Company (OMIFCO) under a Long Term Urea Off Take Agreement  (UOTA) between GOI & OMIFCO\_

The Steering Committee of  Secretaries (SCOS) with  Secretary (Fertilizers) as Department of Expenditure, Secretary , Department of Agriculture & Cooperation, Secretary, Department of Shipping, Member (Traffic) Railway Board, as members, is empowered to decide the quantity to be imported, based on the assessed demand and indigenous production and the timing of import:

Import of fertilizers (other than Urea) is free, commonly known as Open General Licence (OGL): Various   companies   import these fertilizers as per   their commercial judgment:

(b): The name of the importing companies and the details of the countries and the quantum (other than Urea) are as per AnnexureA and Annexure-B. of fertilizers imported (other than Urea) not maintained by the DOF.

The details the countries from where urea is imported are as per Annexure C The total quantum and value of urea imported during the last three years and current financial year in the country is as under:

| Year    | From OMI- FCO   | Wt: CFR rate for OMIFCO Avg:   | Through STE (In LMT)   | Through STE (In LMT)   | Through STE (In LMT)   | Through STE (In LMT)   | Through STE (In LMT)   | Total Urea Imported through STE   | CFR rate through STE import Avg:   |
|---------|-----------------|--------------------------------|------------------------|------------------------|------------------------|------------------------|------------------------|-----------------------------------|------------------------------------|
| Year    | (LMT)           | (USS PMT)                      | IPL                    | MMTC                   | STC                    | NFL                    | RCF                    | (LMT)                             | (USS PMT)                          |
| 2016-17 | 20.02           | 157.50                         | 4.37                   | 16.35                  | 14.07                  |                        |                        | 34.79                             | 210.42                             |
| 2017-18 | 20.93           | 163.32                         | 17.31                  | 13.13                  |                        | 4.01                   | 4.37                   | 38.82                             | 245.74                             |
| 2018-19 | 19.51           | 180.03                         | 11.21                  | 44.09                  |                        |                        |                        | 55.30                             | 305.44                             |
| 2019-20 | 04.81           | 180.61                         |                        | 09.00                  |                        |                        |                        | 09.00                             | 274.88                             |

(c) & (d): 86 Nos. of Notified Fertilizer Testing Laboratories are existing in the country (including 04 Nos. of Notified Fertilizers Testing laboratories of Government of India) with annual  analytical capacity of 1.78 lakhs samples. the notified Fertilizer Testing Laboratories is having appropriate testing facility and is functioning as per the procedure prescribed in FCO. The method of analysis prescribed in Fertilizer Control Order, 1985 schedule Il Part B are with the conformity of International Standards and extracted from Bureau of India Standards (BIS) and Association of Analytical Chemist (AOAC) references which are internationally recognized organization: All the Notified Fertilizer Testing Laboratories and the Fertilizer Enforcement Agencies are working under the mechanism and regulations specified with the provisions of Fertilizer Control Order; 1985 Schedule Part A& B with   respect to the inspection of fertilizers from the Dealers network, manufacturing unit and also from the bulk shipments discharging at Sea Ports throughout the country.

- (e): The Government had announced New Investment Policy 2012 on 2nd January, 2013 and its amendment on 7th October 2014 to facilitate fresh investment in urea sector and to make India self-sufficient in the urea sector.

Under NIP- 2012 read with its amendment; Matix Fertilizers & Chemicals Limited (Matix) has set up a Coal Bed Methane(CBM) based Greenfield Ammonia-Urea complex at Panagarh, West Bengal. The commercial production of Matix started on Ist October, 2017\_ Chambal Fertilizers & Chemicals Limited has also set up a Brownfield project at Gadepan, Rajasthan. The commercial production of January, 2019.

These plants are likely to add the capacity of around 12.7 LMT each to the indigenous urea production of the country.

Government of India also   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. will bridge the gap between demand and supply of urea in the country. 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.

The Cabinet in its meeting held on 21.05.2015 has aslo decided to install a new urea plant of 8.646 Lakh Metric Tonne Per Annum (LMTPA) in the existing premises of Brahmaputra Valley Fertilizers Corporation Limited (BVFCL), which will subsequently replace the  existing urea plants Namrup-II (capacity 2.20 LMTPA) and Namrup-III (capacity 2.70 LMTPA)

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ANNEXURE C Country wise Import of Urea during last 3 Years and current year

<Figures in Lakh MT)

| Country Name   | 2016-17   |       | 2018-19   | 2019-20 (up to June, 19)   |
|----------------|-----------|-------|-----------|----------------------------|
| Country Name   | Urea      | Urea  | Urea      | Urea                       |
| Algeria        | 0.45      |       | 3.03      |                            |
| Bahrain        | 0.78      | 1.19  | 1.68      | 0.86                       |
| China          | 8.20      | 7.47  | 14.30     | 0.47                       |
| Egypt          | 2.25      |       | 3.82      | 1.46                       |
| Finland        |           |       | 1.02      |                            |
| Indonesia      |           |       | 0.33      | 0.88                       |
| Iran           | 14.56     | 20.35 |           |                            |
| Kuwait         | 2.19      | 1.14  | 0.41      |                            |
| Lativa         |           |       | 0.52      |                            |
| Nigeria        |           |       | 0.31      |                            |
| Oman           | 22.91     | 25.12 | 25.68     | 7.79                       |
| Pakistan       |           | 0.96  |           |                            |
| Qatar          |           | 0.42  | 1.96      | 0.62                       |
| Russia         | 1.1       | 0.53  | 1.98      |                            |
| Saudi-Arabia   |           | 0.70  | 2.69      |                            |
| UAE            | 0.52      | 1.33  | 3.97      | 1.73                       |
| Ukraine        | 1.84      | 0.54  |           |                            |
| Total          | 54.81     | 59.75 | 74.81     | 13.81                      |

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