Lok Sabha Question No. 1557 (UNSTARRED), answered on 2023-02-10
Subject: Production of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Khagen Murmu

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

## LOK SABHA

UNSTARRED QUESTION NO. 1557 TO BE ANSWERED ON 10.02.2023

## Production of Fertilizers

## 1557:   SHRI KHAGEN MURMU:

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

- (a) the  quantum  of  fertilizers  produced  by  the  cooperative  and  public  sector companies of  the country during each of the last three years and the current year, company-wise and year-wise;
- (b) the quantum of fertilizers required for the farmers annually in the country;
- (c) whether the domestic production meets the demand of fertilizers by the farmers during the said period, if so, the details thereof, year-wise;
- (d) the details and quantum of fertilizers imported during the said period, year-wise; and
- (e) the steps taken/proposed to be taken by the  Government  to  minimise dependence on imports?

## ANSWER

## MINISTER OF STATE FOR CHEMICALS & FERTILIZERS (SHRI BHAGWANTH KHUBA)

- (a):              The  quantum  of  fertilizers  produced  by  the  cooperative  and  public  sector companies of the country during the last three years and the current year from 2019-20 to 2022-23 (up to December 2022) are given at Annexure.
- (b) to (d): The requirement/ Demand, Production and Import of fertilizers during the last three years and the current year from 2019-20 to 2022-23 (up to December 2022) are given below: -

| Year                           | Requirement/ Demand ( Fig. in LMT)     | Requirement/ Demand ( Fig. in LMT)     | Requirement/ Demand ( Fig. in LMT)     | Requirement/ Demand ( Fig. in LMT)     |
|--------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|
|                                | Urea                                   | DAP                                    | NPKs                                   | MOP                                    |
| 2019-20                        | 335.26                                 | 103.30                                 | 104.82                                 | 38.12                                  |
| 2020-21                        | 350.64                                 | 107.76                                 | 108.00                                 | 35.51                                  |
| 2021-22                        | 356.53                                 | 123.90                                 | 122.74                                 | 37.10                                  |
| 2022-23 (up to December, 2022) | 294.84                                 | 102.16                                 | 98.68                                  | 28.77                                  |
|                                | Fertilizers Production* ( Fig. in LMT) | Fertilizers Production* ( Fig. in LMT) | Fertilizers Production* ( Fig. in LMT) | Fertilizers Production* ( Fig. in LMT) |
|                                | Urea                                   | DAP                                    | NPKs                                   | MOP                                    |
| 2019-20                        | 244.55                                 | 45.50                                  | 93.34                                  | -                                      |
| 2020-21                        | 246.03                                 | 37.74                                  | 100.54                                 | -                                      |
| 2021-22                        | 250.72                                 | 42.22                                  | 89.67                                  | -                                      |
| 2022-23 (up to December, 2022) | 210.98                                 | 31.80                                  | 76.50                                  | -                                      |

| Year                           | Import of Fertilizers( Fig. in LMT)   | Import of Fertilizers( Fig. in LMT)   | Import of Fertilizers( Fig. in LMT)   | Import of Fertilizers( Fig. in LMT)   |
|--------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|
|                                | Urea                                  | DAP                                   | NPKs                                  | MOP                                   |
| 2019-20                        | 91.23                                 | 48.70                                 | 7.46                                  | 36.70                                 |
| 2020-21                        | 98.28                                 | 48.82                                 | 13.90                                 | 42.27                                 |
| 2021-22                        | 91.36                                 | 54.62                                 | 11.70                                 | 24.60                                 |
| 2022-23 (up to December, 2022) | 62.44                                 | 53.18                                 | 20.86                                 | 16.22                                 |

(*Production of NPKs includes Complex Fertilizers & Ammonium Sulphate)

(e): With regard to urea fertilizer,  the  Government had announced New  Investment Policy (NIP) - 2012 on 2 nd  January, 2013 and its amendment on 7 th  October, 2014 to facilitate fresh investment in the urea sector and to make India self-sufficient in the urea sector.  Total  6  new  urea  units  have  been  set  up  under  NIP  -  2012.    These  are Panagarh  urea  unit  of  Matix  Fertilizers  and  Chemicals  Ltd.  (Matix)  in  West  Bengal; Gadepan-III urea unit of Chambal Fertilizers and Chemicals Ltd. (CFCL) in Rajasthan; Ramagundam  urea  unit  of  Ramagundam  Fertilizers  and  Chemicals  Ltd.(RFCL)  in Telangana;  and  3  urea  units  namely  Gorakhpur,  Sindri  and  Barauni  of  Hindustan Urvarak & Rasayan Limited (HURL) in Uttar Pradesh, Jharkhand and Bihar respectively. Each  of  these  units  has  the  installed  urea  production  capacity  of  12.7  Lakh  Metric Tonne per annum. Therefore, these units have together added 76.2 LMT per annum in the existing indigenous urea production capacity of the country.

Further, an exclusive policy has been notified on 28 th  April, 2021 for the revival of Talcher unit of FCIL in Odisha by setting up a new greenfield urea plant of 12.7 LMT per annum through coal gasification route.

The Government has also notified New Urea Policy (NUP) - 2015 on 25 th  May, 2015 with one of the objectives of maximizing indigenous urea production. NUP-2015 has led to additional production of urea by 20-25 LMTPA as compared to the production during 2014-15.

Further,  Department  of  Fertilizers  is  encouraging  its  PSUs  for  setting  up  Nano Urea plants. Till date, 3 Nano Urea plants have been set up by Indian Farmers Fertilizer Cooperative  (IFFCO)  at  Kalol  (Gujarat),  Phulpur  (Uttar  Pradesh)  and  Aonla  (Uttar Pradesh) with capacity of 17 crore bottles (500 ml) per annum.

Further, P&K fertilizers are decontrolled under the Nutrient Based Subsidy (NBS) scheme.  However,  the  Govt.  of  India  has  taken  following  steps  in  the  direction  of increasing the domestic production of P&K fertilizers:

(i) Department  of Fertilizers  (DoF)  granted  permission  to  produce  DAP/NPK fertilizers  to  Madhya  Bharat  Agro  product  Limited  Unit-II,  Banda  Sagar,  Madhya Pradesh for production of 2,40,000 MT per annum.

(ii) DoF  granted  permission  to  produce  DAP/NPK  fertilizers  to  Krishna  Phoschem Ltd., Meghnagar, Madhya Pradesh for production of 3,30,000 MT per annum.

(iii) A proposal had been received from Rashtriya Chemicals and Fertilizers Limited (RCF) for setting up a NPK plant at Thal (Maharashtra) from its own resources and no financial  assistance  would  be  provided  by  the  Government  of  India.  Department  of Fertilizers has granted administrative approval for this project on 15.11.2021.

(iv) Further,  Union  Cabinet  accorded approval  for  CAPEX  worth  Rs. 608  Crore for implementing  essential  capital  jobs  with  a  view  to  enhance  the  reliability  of  Fertilizer production plants.

********

Quantum of fertilizers produced by the cooperative and public sector companies of the country during the last three years and the current year from 2019-20 to 2022-23 (up to December 2022)

Annexure

| Sl. No.            | Name of the Company                                     | Plant location     | Name of Fertilizers produced   | Fertilizer produced (Fig.   | Fertilizer produced (Fig.   | Fertilizer produced (Fig.   | in 'LMT')                      |
|--------------------|---------------------------------------------------------|--------------------|--------------------------------|-----------------------------|-----------------------------|-----------------------------|--------------------------------|
| Public Sector      | Public Sector                                           | Public Sector      | Public Sector                  | 2019-20                     | 2020-21                     | 2021-22                     | 2022-23 (up to December, 2022) |
| 1                  | Brahmaputra Valley Fertilizers Corporation Ltd. (BVFCL) | Namrup-II          | Urea                           | 0.46                        | 0.02                        | 0.00                        | 0.00                           |
| 1                  | Brahmaputra Valley Fertilizers Corporation Ltd. (BVFCL) | Namrup-III         | Urea                           | 1.10                        | 1.30                        | 1.7                         | 1.67                           |
| 2                  | National Fertilizers Ltd. (NFL)                         | Nangal-II          | Urea                           | 5.75                        | 5.47                        | 5.32                        | 4.07                           |
| 2                  | National Fertilizers Ltd. (NFL)                         | Panipat            | Urea                           | 5.52                        | 5.83                        | 4.69                        | 4.21                           |
| 2                  | National Fertilizers Ltd. (NFL)                         | Bhatinda           | Urea                           | 5.63                        | 5.77                        | 5.29                        | 4.32                           |
| 2                  | National Fertilizers Ltd. (NFL)                         | Vijaypur-I         | Urea                           | 9.84                        | 9.66                        | 10.41                       | 7.73                           |
| 2                  | National Fertilizers Ltd. (NFL)                         | Vijaypur-II        | Urea                           | 10.53                       | 11.27                       | 9.55                        | 8.94                           |
| 3                  | Fertilizers and Chemicals Travancore Ltd. (FACT)        | Udyogamandal       | Complex & A/S                  | 4.31                        | 4.62                        | 3.23                        | 3.28                           |
| 3                  | Fertilizers and Chemicals Travancore Ltd. (FACT)        | Cochin             | Complex                        | 6.41                        | 6.46                        | 6.4                         | 4.46                           |
| 4                  | Rashtriya Chemicals & Fertilizers Ltd. (RCF)            | Trombay            | Urea & Complex                 | 8.96                        | 8.77                        | 8.99                        | 7.49                           |
| 4                  | Rashtriya Chemicals & Fertilizers Ltd. (RCF)            | Thal               | Urea                           | 20.22                       | 19.12                       | 18.59                       | 13.9                           |
| 5                  | Madras Fertilizers Ltd. (MFL)                           | Chennai            | Urea & Complex                 | 4.10                        | 5.34                        | 5.28                        | 3.82                           |
| Cooperative Sector | Cooperative Sector                                      | Cooperative Sector |                                |                             |                             |                             |                                |

|   6 | Indian Farmers Fertilizer Co-operative Ltd. (IFFCO)   | Kalol      | Urea          |   6.02 |   6.24 |   5.45 |   4.92 |
|-----|-------------------------------------------------------|------------|---------------|--------|--------|--------|--------|
|   6 | Indian Farmers Fertilizer Co-operative Ltd. (IFFCO)   | Anola-I    | Urea          |  12.2  |  11.04 |  12.07 |   9.24 |
|   6 | Indian Farmers Fertilizer Co-operative Ltd. (IFFCO)   | Anola-II   | Urea          |  10.87 |  11.77 |  11.32 |   8.84 |
|   6 | Indian Farmers Fertilizer Co-operative Ltd. (IFFCO)   | Phulpur-I  | Urea          |   7.5  |   7.06 |   6.4  |   4.53 |
|   6 | Indian Farmers Fertilizer Co-operative Ltd. (IFFCO)   | Phulpur-II | Urea          |  12.16 |  10.64 |   8.38 |   9.13 |
|   6 | Indian Farmers Fertilizer Co-operative Ltd. (IFFCO)   | Kandla     | DAP & Complex |  23.27 |  22.83 |  23.4  |  18.34 |
|   6 | Indian Farmers Fertilizer Co-operative Ltd. (IFFCO)   | Paradeep   | DAP & Complex |  19.31 |  19.88 |  19.95 |  16.74 |
|   7 | Krishak Bharati Co- operative Ltd. (KRIBHCO)          | Hazira     | Urea          |  23.31 |  23.23 |  22.08 |  16.8  |

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