Lok Sabha Question No. 1832 (UNSTARRED), answered on 2022-12-16
Subject: Impact of Global Price Hike of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Vinod Chavda, Vijay Baghel, Sudhakar Tukaram Shrangre, Arun Sao, Ranjeetsingh Naik Nimbalkar, Sunil Kumar Soni, Sunil Kumar Singh, Mohan Mandavi

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

UNSTARRED QUESTION NO. 1832 TO BE ANSWERED ON

16.12.2022

## LOK SABHA

## Impact of Global Price Hike of Fertilizers

1832. SHRI VINOD L: CHAVDA:

SHRI VIJAY BAGHEL:

SHRI SUDHAKAR TUKARAM SHRANGARE:

SHRI ARUN SAO:

SHRI RANJEETSINGH HINDURAO NAIK NIMBALKAR:

SHRI SUNIL KUMAR SONI:

SHRI SUNIL KUMAR SINGH:

SHRI MOHAN MANDAVI:

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

- (b) whether the Government has any plan to reduce dependence on import with regard to mineral fertilizers and if so, the details thereof?
- (a) the details of the impact of global hike in prices of urea, DAP MOP , phosphoric acid, ammonia and LNG along with mineral fertilizers; and

## ANSWER

## MINISTER OF STATE FOR CHEMICALS & FERTILIZERS (SHRI BHAGWANTKHUBA)

(a) "Urea is provided to the farmers at a statutorily notified Maximum Retail Price (MRP): Vide Gazette notification dated 1st March 2018, the MRP of 45 kg of urea has been fixed at Rs.242 per bag (exclusive of charges towards neem coating and taxes as applicable) The difference delivered price of urea to the farm and net market   realization is as subsidy to the urea   manufacturing companieslimporters. Accordingly, all farmers are being provided subsidizedlcheaper urea. bag paid gate

Gol has analyzed the situation and notified the subsidy rates under the Nutrient Based Subsidy (NBS) scheme in such a way that the international rise does not affect farming community of India and these  fertilizers   could be available at the affordable rates to Indian farmers. The subsidy rates under NBS scheme during FY 2021-22 and FY 2022-23 are as under: price

| S No:   | INutrient   |   NNBS (Rs: Per KgNBS (Rs. Per KgNBS PerINBS (Rs: Perl of Nutrient) of Nutrient) KKg of Nutrient) IKg of Nutrient) ((from 01.04.2021k(from 20.05.2021kfrom Ito 19.05.2021) Ito 31.03.2022) (Rs_ | NNBS (Rs: Per KgNBS (Rs. Per KgNBS PerINBS (Rs: Perl of Nutrient) of Nutrient) KKg of Nutrient) IKg of Nutrient) ((from 01.04.2021k(from 20.05.2021kfrom Ito 19.05.2021) Ito 31.03.2022) (Rs_   |   NNBS (Rs: Per KgNBS (Rs. Per KgNBS PerINBS (Rs: Perl of Nutrient) of Nutrient) KKg of Nutrient) IKg of Nutrient) ((from 01.04.2021k(from 20.05.2021kfrom Ito 19.05.2021) Ito 31.03.2022) (Rs_ |   NNBS (Rs: Per KgNBS (Rs. Per KgNBS PerINBS (Rs: Perl of Nutrient) of Nutrient) KKg of Nutrient) IKg of Nutrient) ((from 01.04.2021k(from 20.05.2021kfrom Ito 19.05.2021) Ito 31.03.2022) (Rs_ |
|---------|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1 .     |             |                                                                                                                                                                                          18.789 | 18.789                                                                                                                                                                                          |                                                                                                                                                                                           91.96 |                                                                                                                                                                                           98.02 |
| 2       |             |                                                                                                                                                                                          14.888 | 45.323                                                                                                                                                                                          |                                                                                                                                                                                           72.74 |                                                                                                                                                                                           66.93 |
| 3_      |             |                                                                                                                                                                                          10.116 | 10.116                                                                                                                                                                                          |                                                                                                                                                                                           25.31 |                                                                                                                                                                                           23.65 |
| 4.      | S           |                                                                                                                                                                                           2.374 |                                                                                                                                                                                                 |                                                                                                                                                                                            6.94 |                                                                                                                                                                                            6.12 |

(b): The Government had announced New Investment (NIP) 2012 on January, 2013 and its amendment on 2014 to facilitate fresh Total 6 new urea units have been set up under NIP 2012 read with its amendment: These are Panagarh urea unit of Matix Fertilizers and Chemicals Ltd. (Matix); Gadepan-III urea unit of Chambal Fertilizers and Chemicals Ltd. (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. Policy 2nd

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 from existing urea units due to which the actual production of urea has increased by 20-25 LMTPA in comparison to the actual production during 2014-15. May,

Gol has also taken following steps to reduce dependence on import with regard to mineral fertilizers:

- Bharat product  Limited  Unit-II, Banda  Sagar, MP for   production of DAPINPK with installed capacity 1,20,000 MT per annum: Agro
- iii. 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
- ii\_ 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:
- iv Additional Cost on production/ imports of DAP from 25.10.2021 to 31.3.2022 within a ceiling of Rs. 8000 at no profit/ no loss has been provided.
- Freight Subsidy on SSP which is an indigenously manufactured fertilizers has been made applicable for Kharif and Rabi 2022.
- V PDM or Potash has been included under NBS scheme\_
- vii: 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

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