Lok Sabha Question No. 439 (UNSTARRED), answered on 2023-02-03
Subject: High Prices of Fertilizer Imports
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Dhanush M Kumar, C.N. Annadurai, Manjulata Mandal, Subhash Ramrao Bhamre, DNV Senthilkumar. S., Kuldeep Rai Sharma, Supriya Sadanand Sule, Amol Ramsing Kolhe, Sunil Dattatray Tatkare

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS

## DEPARTMENT OF FERTILIZERS LOK SABHA

## UNSTARRED QUESTION NO. 439 TO BE ANSWERED ON: 03.02.2023

High prices of fertilizer imports

439. SHRI DHANUSH M: KUMAR:

SHRI CN: ANNADURAI:

SHRIMATI MANJULATA MANDAL:

DR. SUBHASH RAMRAO BHAMRE:

DR; DNV SENTHILKUMAR S:

SHRI KULDEEP RAI SHARMA:

SHRIMATI SUPRIYA SULE:

DR AMOL RAMSING KOLHE:

SHRI SUNIL DATTATRAY TATKARE:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased t3state:

- (a) whether various fertilizers imported into the country during each of the last three years and the current year at much high  prices as compared to the prices prevalent in the international market;
- (c) whether India's import of fertilizers touched an all-time high of $12.77 billion in 2021-22;
- (b) if so, the details thereof and the reasons therefor alongwith the quantum of loss to the Government exchequer;
- (d) if so, the details thereof and the reasons for high import and details of total amount of fertilizer manufactured in India during last three years and current year;
- whether India has sufficient availability of raw materials to manufacture every kind of fertilizers, if so, the details thereof and if not; the reasons therefor; and
- (e) the challenges faced by the Government while toosting fertilizers manufacturing in the country;
- the details of Countries from which India procure raw material and the steps takenlproposed to be taken by the Government to produce raw material indigenously?

## ANSWER

MINISTER OF STATE FOR CHEMICALS AND FERTILIZERS

(SHRI BHAGWANTH KHUBA)

(a) to (d): Urea is the only fertilizer which is under  statutory price and partial movement control. The import of urea for direct agriculture use is permitted through State Trading Enterprises (STEs) namely Ms Rashtriya Chemicals & Fertilizers Ltd.

(upto 31.03.2023) under the Foreign Trade Policy of Government   STEs floats GLOBAL Tenders for import of Urea on Government account;

The Quantity, Weighted Average Price and Value of Urea imported into the country during each of the last three years and the current year (upto Dec'22) is given in the table;

| Import of Urea from the year   | Import of Urea from the year   | Import of Urea from the year   | Import of Urea from the year   |
|--------------------------------|--------------------------------|--------------------------------|--------------------------------|
| Year                           | Qty in LMT                     | Wtg: Price (in USS PMT) Avg:   | Value in Billion USS           |
| 2019-20                        |                                | 252.43                         | 2.30                           |
| 2020-21                        | 98.28                          | 262.54                         | 2.58                           |
| 2021-22                        | 91.36                          | 661.31                         | 6.04                           |
| 2022-23 (upto Dec'22)          | 62.44                          | 646.82                         | 4.04                           |

are imported under Open General License (OGL) by the companies on commercially viable terms. The quantity of P&K (DAP, MOP and NPK) fertilizers imported into the country (as reported by the companies) during each of the last three years and the current year (upto Dec'22) is given in the table:

| Import of PBK fertilizers (DAP, MOP and NPK) from 2019-20 to 2022-23 (upto Dec'22)   | Import of PBK fertilizers (DAP, MOP and NPK) from 2019-20 to 2022-23 (upto Dec'22)   | Import of PBK fertilizers (DAP, MOP and NPK) from 2019-20 to 2022-23 (upto Dec'22)   | Import of PBK fertilizers (DAP, MOP and NPK) from 2019-20 to 2022-23 (upto Dec'22)   | Import of PBK fertilizers (DAP, MOP and NPK) from 2019-20 to 2022-23 (upto Dec'22)   |
|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|
|                                                                                      |                                                                                      |                                                                                      |                                                                                      | (Qty in LMT)                                                                         |
|                                                                                      |                                                                                      | As reported by the companies                                                         | As reported by the companies                                                         | As reported by the companies                                                         |
|                                                                                      | 2019-20                                                                              | 48.70                                                                                | 36.70                                                                                | 7.46                                                                                 |
|                                                                                      | 2020-21                                                                              | 48.82                                                                                | 42.27                                                                                | 13.90                                                                                |
|                                                                                      | 2021-22                                                                              | 54.62                                                                                | 24.60                                                                                | 11.70                                                                                |
| 2022-23 (upto Dec'22)                                                                | 2022-23 (upto Dec'22)                                                                | 53.18                                                                                | 16.22                                                                                |                                                                                      |

Further; the total amount of fertilizers manufactured in India during the last three years and the current year (upto Dec'22) is given in the table:

|   Year |   Urea (Qty in LMT) | SSP) (Qty in LMT)     |
|--------|---------------------|-----------------------|
| 244.58 |              181.37 | 2019-20               |
| 246.05 |              187.63 | 2020-21               |
| 250.72 |              185.23 | 2021-22               |
| 210.98 |              151.75 | 2022-23 (Upto Dec'22) |

(e) to (g): P&k fertilizers under the Nutrient Based Subsidy (NBS) Scheme are decontrolled and' P&K fertilizers companies are free to manufacture or import these

The country has achieved substantial self-sufficiency in prc duction capacity of Urea. As a result, India could manage its substantial requirement of nitrogenous fertilizers through the indigenous industry besides imports. Similarly , great share of indigenous capacity has been developed in respect of phosphatic fertilizers to meet domestic requirements. However, the raw-materials and intermediates for the same are largely imported. For potash (K), since there are no viable sourceslreserves in the country, its entire requirement is met through imports

Various efforts by DoF to ensure regular and sufficient supply of DAP and its raw materials to India at reasonable   prices   from various countries which is a continuous process.