Lok Sabha Question No. 432 (UNSTARRED), answered on 2023-02-03
Subject: Self-Sufficiency in Fertilizer Production
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Sukhbir Singh Jaunapuria

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

## LOK SABHA

UNSTARRED QUESTION NO. 432 TO BE ANSWERED ON: 03.02.2023

## Self sufficiency in fertilizer production

## +432 SHRI SUKHBIR SINGH JAUNAPURIA:

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

- (a) whether India is heavily  dependent on other countrie s for its fertilizer requirements;
- the details of such countries from where the fertilizers are being imported;
- if so, the details thereof; {6) the details of quantity of indigenously produced and imported fertilizers as compared to the total consumption of fertilizers in the country;
- the steps takenlproposed to be taken by the Government to make India selfreliant in fertilizer production; and
- (f) the details of the quantity of fertilizer required and fertilizer supplied in the Tonk and Sawai Madhopur districts of Rajasthan?

## ANSWER

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

(a) to (c): Amongst the major fertilizers, against the total requirement around 75% f Urea; 40% of DAP and 85% of NPKS are produced in the country by PSUs and private companies. The rest is imported on account of Government of India (as in case of Urea) & by the companies in case of P&K (under Open General Licenses) to bridge the gap between requirement & production of fertilizers.

The details of fertilizer Production and Imports during last three years is as below:-

## <Figures in LMT>

| FY 2019-20   | FY 2019-20   | FY 2019-20   | FY 2019-20   |
|--------------|--------------|--------------|--------------|
| FERTILIZER   | PRODUCTION   | IMPORT       | CONSUMPTION  |
| UREA         | 244.55       | 91.23        | 336.96       |
| DAP          | 45.50        | 48.70        | 101.01       |
| NPKS         | 93.34        | 7.46         | 27.80        |
| MOP          | NIL          | 36.70        | 105.01       |
| FY 2020-21   | FY 2020-21   | FY 2020-21   |              |
| FERTILIZER   | PRODUCTION   | IMPORT       | CONSUMPTION  |
| UREA         | 246.03       | 98.28        | 350.51       |
| DAP          | 37.74        | 48.82        |              |
| NPKS         | 100.54       | 13.90        | 34.32        |
| MOP          | NIL          | 42.27        | 125.82       |
| FY 2021-22   | FY 2021-22   | FY 2021-22   |              |

| FERTILIZER   | PRODUCTION   |   IMPORT | CONSUMPTION   |
|--------------|--------------|----------|---------------|
| UREA         | 250.72       |    91.36 |               |
| DAP          | 42.22        |    54.62 | 92.64         |
| NPKS         | 89.67        |  1170    | 23.93         |
| MOP          | NIL          |    24.6  | 121.37        |

- (d): The fertilizers (Urea, DAP , MOP & NPK) are being imported from various countries viz Germany, Georgia, Indonesia, Israel, Jordan, Latvia, Libya, Lithuania, Nigeria, Malaysia, Mexico , Morocco, Oman, Qatar, Russia, Saudi Arabia, South Korea, Turkey, Tunisia, UAE, Ukraine, USA and Vietnam:

(e): The Government had announced New Investment Policy (NIP) 2012 on 2nd January, 2013 and its amendment on 7th 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); Gadepan-III urea unit of Chambal Fertilizers and Chemicals (CFCL); Ramagundam urea unit of Ramagundam Fertilizers and Chemicals Ltd (RFCL); and 3 urea units namely Gorakhpur; Sindri and Barauni of Hindustan Urvarak & Rasayan Limited (HURL): Each of these units have 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 28th April 2021 for the revival of Talcher unit of FCIL by setting up a new greenfield urea plant of 12.7 LMT per annum at coal gasification route.

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

Department of Fertilizers monitors the supply situation and facilitate long term tie ups and short term supplies of P&K fertilizers from alternative sources in consultation with other  concerned ministries such as Ministry of External Affairs, Ministry of Finance, Department of Commerce etc; In addition, Gol has analyzed the situation and notified the subsidy rates under the Nutrient Based Subsidy (NBS) scheme in such a way that the international price rise does not affect farming community of India and these fertilizers could be avai'able at the affordable rates to Indian farmers. The subsidy rates under NBS scheme during FY 2021-22 and FY 2022-23 are as under:

| No:   | Nutrient   | NBS (Rs. Per Kg of Nutrient) (from 01.04.2021 to 19.05.2021)   |   NBS (Rs. Per Kg of Nutrient) (from 20.05.2021 to 31.03.2022) |   NBS (Rs: Per Kg of Nutrient) (from 1.04.2022 to 30.9.2022) |   NBS (Rs. Per Kg of Nutrient) (from 1.10.2022 to 31.3.2023) |
|-------|------------|----------------------------------------------------------------|----------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
| 1.    | N          | 18.789                                                         |                                                         18.789 |                                                        91.96 |                                                        98.02 |
| 2,    | P          | 14.888                                                         |                                                         45.323 |                                                        72.74 |                                                        66.93 |
| 3,    | K          | 10.116                                                         |                                                         10.116 |                                                        25.31 |                                                        23.65 |
| 4,    | S          |                                                                |                                                          2.374 |                                                         6.94 |                                                         6.12 |

Other steps taken by the Department are as under:

- 1 DoF granted permission to Madhya Bharat Agro product Limited Unit-Il, Banda Sagar; MP for production of DAPINPK with installed capacity 1,20,000 MT per annum:
2. DoF granted permission to Pararadeep Phosphates Ltd to manufacture additional DAPINPK complex to the tune of 8 LMT per annum utilizing the 2 trains of ZACL Goa Plant.
- 3\_ RCF , Thal has been granted permission for a new DAPINPK plant with annual capacity of 5 LMT and FACT Kochi also planned a DAPINPK plantwith annual capacity of 5.5 LMT
5. PDM or Potash Derived from Molasses (0-0-14.5-0) has been included under NBS scheme.
- 4 Additional Cost on production/ imports of DAP from 25.10.2021 to 31.3.2022 within a ceiling of Rs. 8000 at no profitl no loss has been provided.
6. Freight Subsidy on SSP which is an indigenously manufactured fertilizers has been made applicable for Kharif and Rabi 2022.
- 7 . Exploration of minerals for raw materials for DAP & other fertilizers in India, in consultation with Ministry of Mines , GSI , MECL, FAGMIL and concerned State Governments is a continuous process.
- (f): Quantity of fertilizer required and fertilizer supplied in Tonk and Sawai Madhopur districts of Rajasthan is given below -

in MT)

| Year      | Fertilizer   | Tonk   | Tonk     | Sawai Madhopur   | Sawai Madhopur   |
|-----------|--------------|--------|----------|------------------|------------------|
| 2022-23   |              | Demand | supplied | Demind           | Supplied         |
| (upto Jan | Urea         | 49500  | 64754    | 56200            | 68297            |
| 2023)     | DAP          | 23900  | 19245    | 14900            | 16499            |

In addition to above fertilizers , 28677 MT SSP in Tonk and 28627 MT SSP in Sawai Madhopur is also supplied during this period.