Lok Sabha Question No. 431 (STARRED), answered on 2023-03-31
Subject: Indigenous Production of DAP Fertilizer
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Rajeshbhai Naranbhai Chudasama

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

## LOK SABHA

STARRED QUESTION NO. 431 TO BE ANSWERED ON: 31.03.2023

Indigenous production of DAP fertilizer

## 431\_ SHRI RAJESHBHAI CHUDASAMA

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

- (a) the steps takenlproposed to be taken by the Government to provide adequate supply of Di-ammonium Phosphate (DAP) fertilizer at subsidized cost;
- (b) whether the Government has taken any initiative to produce DAP in the country; and
- (c) if the details thereof with the current status of such initiative? SO, along

## ANSWER

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

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

## STATEMENT REFERRED TO LOK SABHA STARRED QUESTION FOR 31.03.2023 REGARDING SINDIGENOUS PRODUCTION OF DAP FERTILIZER" TABLED BY SHRI RAJESHBHAI CHUDASAMA

- (a) to (c): Sir, the following steps are taken by the Government every season to meet the adequate and timely requirement of fertilizers including DAP in the country.
- Based on the requirement of States projected by Department of Agriculture and Farmers Welfare, Department of Fertilizers allocates sufficientl adequate quantities of fertilizers to States by   issuing monthly supply plan and continuously monitors the availability.
- Il Regular Weekly Video Conference is conducted jointly by DA&FW and DoF with State Agriculture Officials and corrective actions are taken to dispatch
- In order to bridge the gap between the demand and production, imports are tied up. Several long-term  agreementsl MoUsIJVs of PeK fertilizers includiny DAPI raw materials have been concluded between Pek Fertilizer companies from India and Fertilizer companies from other countries such as Jordan, Saudi Arabia, Oman, Morocco, Canada, Russia, Israel and Germany: These agreements/ MoUsIJVs are entered to secure the import of DAP and raw material well in time before each season on long term basis.
- IV . The Nutrient scheme has been   implemented 1.4.2010 for Phosphatic and Potassic (P&K) Fertilizers: A fixed amount of subsidy, decided on annuallsemi-annual basis, is provided on subsidised P&K fertilizers depending on their nutrient content including DAP . To provide DAP at affordable rates to farmers, Government of  India under its Nutrient Based Subsidy (NBS) scheme has increased the subsidy for fertilizers considerably in  past 2 years to absorb the major   portion of increase in international prices of fertilizerslintermediates and raw materials to keep prices stable and affordable for the farmers.
- V A special one-time package with additional subsidy has been provided (effective from 01.10.2021 to 31.3.2022) for DAP at Rs.8769/MT and 3 most for each in order to make P&K fertilizers available at affordable prices to the farmers. grade

- VI. An Additional Cost on production/ imports of DAP from 25.10.2021 to 31.3.2022 within a ceiling of Rs. 8000 at no no loss was also provided so that DAP (most   consumed Phosphatic fertilizers by farmers) is made available at affordable rates to farmers. profitl
- VII. Following stepslinitiatives has been taken in the direction of DAP production in the country:
3. Permission given to Madhya Bharat Agro product Ltd. for production of 1.2 LMT per annum of DAPINPK in September 2021\_ The production capacity was increased from 1.2 LMT to 2.4LMT per annum during December, 2022.
4. Permission given to Ms: Krishna Phoschem Ltd\_ Meghnagar; MP. for production of 3.30 LMT per annum of P&k fertilizer per annum in December, 2022.
- iii. Government also permitted PPL to manufacture   additional DAP and NPK to the tune of 8 LMT per annum of P&K fertilizers during 2021-22.
- iv. The initiatives to augment the capacity of raw materialslintermediates namely Phosphoric Acid, Rock Phosphate and Sulphuric Acid are as below:
7. (a) RSMML, a PSU of Government of Rajasthan, is producing Rock Phosphate to the tune of 7-8 LMT per annum (appx ).
8. (b) Coromandel International Limited has commissioned a Phosphoric Acid plant of 2 LMT in 2020 and is to set up a Sulnhuric Acid plant of 5 LMT in July 2023.
9. (c) Mls\_ Greenstar Fertilizers Ltd: (Chennai) has obtained Consent to Operate for Phosphoric Acid production to the tune of 3.20 LMT per annum and Consent to Establish for expansion of Sulphuric Acid plant of 8.5 LMT per annum from the State Pollution Control Board.

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