Lok Sabha Question No. 146 (STARRED), answered on 2022-02-11
Subject: Import of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: S.R. Parthiban

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

## LOK SABHA

## STARRED QUESTION NO. *146 TO BE ANSWERED ON: 11.02.2022

## Import of Fertilizers

## *146 SHRI PARTHIBAN S.R:

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

- (a) the quantity and value of the fertilizers imported by the country during each of the last three years, fertilizer-wise;
- (b) whether any have been takenlproposed to be taken by the Government to reduce the expenditure incurred on the import of fertilizers; steps
- (c) if so, the details thereof;
- (d) whether the farmers have faced difficulties in sowing of Rabi crops due to extreme shortage of fertilizers in the country and if so, the details thereof, State-wise including Tamil Nadu; and
- (e) the details of steps taken by the Government to address the issue?

## ANSWER

## MINISTER OF HEALTH & FAMILY WELFARE AND CHEMICALS & FERTILZERS (DR: MANSUKH MANDAVIYA)

- (a) to (e): A statement is laid on the table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO. 146* TO BE ANSWERED ON 11.02.2022 REGARDING "IMPORT OFFERTILIZERS

## (a): The quantity and value of Urea imported by the country during each of the last three years is given in the table below:

|                        |   2018-19 | 2019-20   |   2020-21 |
|------------------------|-----------|-----------|-----------|
| Quantity (in LMT)      |     74.81 |           |     98.28 |
| Value (in Million USS) |   2040.14 | 2302.95   |   2580.27 |

Further; the import of P&K fertilizers comes under Open General Licence (OGL) wherein the companies import the fertilizers as per their commercial consideration and market presence. Quantity of DAP, MOP and NPK fertilizers imported by the country during the last three years is given in the table below:

| Import of fertilizers (DAP; MOP and NPK) during the last three years Qty in LMT   | Import of fertilizers (DAP; MOP and NPK) during the last three years Qty in LMT   | Import of fertilizers (DAP; MOP and NPK) during the last three years Qty in LMT   | Import of fertilizers (DAP; MOP and NPK) during the last three years Qty in LMT   |
|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
| Year                                                                              | DAP                                                                               | MOP                                                                               | NPK                                                                               |
|                                                                                   | As reported by the companies                                                      | As reported by the companies                                                      | As reported by the companies                                                      |
| 2018-19                                                                           | 66.02                                                                             | 42.14                                                                             | 5.46                                                                              |
| 48.70                                                                             |                                                                                   | 36.70                                                                             | 2019-20 7.46                                                                      |
| 48.82                                                                             |                                                                                   | 42.27                                                                             | 2020-21 13.90                                                                     |

## (b)& (c): Government has taken following steps to reduce expenditure incurred on import of fertilisers:

- New Investment  Policy (NIP) 2012 was   introduced to facilitate   fresh investment in the urea sector and to make India self-sufficient: Under this policy, Matix Fertilizers and Chemicals Ltd (Matix) & Chambal Fertilizers and Chemicals Ltd. (CFCL) have set up two new urea plants each with 12.7 Lakh Metric Ton per annum (LMTPA) Capacity. Commercial production of these two plants has already been started.
- Government of India mandated revival of Ramagundam, Gorakhpur, Sindri and Talcher units of Fertilizer Corporation of India (FCIL) and Barauni Unit of Hindustan Fertilizer Corporation through Joint Venture Company (JVC) of nominated CPSEs for setting up gas based ammoniaurea plants , each one with a capacity of 12.7 LMTPA that would ensure production of additional 63.5 LMT of urea annually in the country. Ramagundam and Gorakhpur plants have already been commissioned on 22.03.2021 & 07.12.2021 respectively.

- Further, Cabinet in its   meeting held on 21.05.2015 inter-alia  approved setting up of New urea plant of 8.646 LMTPA capacity in the existing premises of BVFCL, Which has been notified by Department of Fertilizers vide OM dated 12.06.2015.
- Government is also promoting usage of SSP fertilizer  which is a 100% indigenous manufactured fertilizer. Potash Derived Molasses (PDM) which is 100% indigenous fertiliser, has been included under  latest Nutrient Based Subsidy (NBS) notification dated 13.10.2021,
- (d): No Sir, There is no shortage of fertilizer in the country. However, in between the season, some states highlighted shortfall of DAP fertilizer, particularly in few districts . Accordingly , based on the requests of State Governments, DAP rakes were moved to meet the requirement: However; the overall availability of DAP and other fertilizer in the country including Tamil Nadu is comfortable during the ongoing Rabi season 2021-22.
- (e): The  following steps have been taken by the Government to ensure comfortable and timely availability of all fertilizers in the country:
- Domestic urea production beyond reassessed capacity of the units under New Urea Policy has maximised the availability of indigenous urea. In addition, timely imports are ensured through designated agencies on Government account to fulfil the demand of the farmers. Government of India has also signed long term arrangement for Urea off take from Oman through OQ Trading (10 LMT per year for 3 years):
- In order to mitigate the price rise of raw materials & finished P&K fertilisers and to make P&K fertilisers available at affordable prices to farmers, the subsidy on P& K fertilisers is increased from Rs.20720 Cr to Rs.64150 Crore during the financial year:
- An attempt has been made to assess the field requirement in consultation with the states and accordingly, the district wise micro planning has been done which is being executed on daily basis.
- 24x7   interactions with the state governments, companies and railways have been established through web platforms/control room The stake holders viz. manufacturers, ports, railways have been sensitized to operate on maximum capacity to produce load, and move the fertilizers to the targeted destinations.

- State Governments are impressed upon to use i-FMS dashboard stock figures for district wise stock availability and suitable interventions. Same source is used by DoF SO as to be on board with states and   closely oversee the recomrended movement for each district rake point:
- The loading and voyage time of   imported fertilizer shipments are being monitored on daily basis and required suitable interventions are being made from time to time.
- Daily monitoring and regular interaction with states, fertilizer  companies and railway board is followed: As 90% of the fertilizers are moved through railway rakes, the loading and movement of these rakes is ensured in targeted manner (in consultation with respective state governments) , so as to address the field demand\_
- Talks are on at G2G level with various countries like Russia, Morocco, Canada, Oman; and Saudi  Arabia for short and long term  supply  arrangements of fertilisers.

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