Lok Sabha Question No. 1574 (UNSTARRED), answered on 2023-07-28
Subject: Fertilizer Factories in India
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Talari Rangaiah

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

## LOK SABHA

UNSTARRED QUESTION NO. 1574 TO BE ANSWERED ON 28.07.2023

## Fertilizer Factories in India

## 1574. DR. TALARI RANGAIAH:

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

- (a) the total production of fertilizers in the country for the last nine years, yearwise;
- (b) whether  the  total  production  is  sufficient  to  meet  the  demands  of  the country's agricultural needs; and
- (c) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

(a)  to  (c):  The details of  the year-wise  total production of all fertilizers in  the  country during the last nine years from 2014-15 to 2022-23 are given below:

| Total Production of all Fertilizers in the country during the last nine years from 2014-15 to 2022-23 (Figures in LMT)   | Total Production of all Fertilizers in the country during the last nine years from 2014-15 to 2022-23 (Figures in LMT)   |
|--------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|
| Year                                                                                                                     | All Fertilizer Production                                                                                                |
| 2014-15                                                                                                                  | 385.39                                                                                                                   |
| 2015-16                                                                                                                  | 413.14                                                                                                                   |
| 2016-17                                                                                                                  | 414.41                                                                                                                   |
| 2017-18                                                                                                                  | 413.61                                                                                                                   |
| 2018-19                                                                                                                  | 413.85                                                                                                                   |
| 2019-20                                                                                                                  | 425.95                                                                                                                   |
| 2020-21                                                                                                                  | 433.68                                                                                                                   |
| 2021-22                                                                                                                  | 435.95                                                                                                                   |
| 2022-23                                                                                                                  | 485.29                                                                                                                   |

Fertilizer  are  made  available  to  the  farmers,  majorly  through  indigenous production.  However,  the  gap  between  demand  and  supply  of  fertilizers  are  met through  the  imports.  India  imports  Urea,  P&K  fertilizers  such  as  Di-ammonium Phosphate  (DAP),  Muriate  of  Potash  (MOP)  and  NPK  to  bridge  the  gap  between demand and supply of fertilizers in the country.

The  Government  has  taken  various  steps  to  increase  the  total  fertiliser production in the country to meet the demands of the country's agricultural needs are as under:

Urea is provided to the farmers at a statutorily notified Maximum Retail Price (MRP).  The  MRP  of  45  Kg  bag  of  urea  is  Rs.  242  per  bag  (exclusive  of  charges towards neem coating and taxes as applicable). The difference between the delivered cost  of  urea  at  farm  gate  and  net  market  realization  by  the  urea  units  is  given  as subsidy to the urea manufacturer/importer by the Government of India. Accordingly, all farmers are being supplied urea at the subsidized rates.

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.  At present, there are 36 urea manufacturing units located across 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.

As far as P&K fertilizers are concerned, Government has implemented Nutrient Based Subsidy Policy w.e.f. 1.4.2010 for Phosphatic and Potassic (P&K) Fertilizers.   Under  the  policy,  a  fixed  amount  of  subsidy,  decided  on  annual/semiannual  basis,  is  provided  on  subsidised  P&K  fertilizers  depending  on  their  nutrient content. Under  this  policy,  MRP  is  fixed  by  fertilizer  companies  as  per  market dynamics at reasonable level which is monitored by the Government. Accordingly, the latest subsidy rates for P&K fertilizers under the NBS Scheme are as under:

|   S. No | Nutrients   |   NBS rates for Kharif 2023 (Rs. Per kg of nutrient) (from 1.4.2023 to 30.9.2023) |
|---------|-------------|-----------------------------------------------------------------------------------|
|       1 | N           |                                                                             76.49 |
|       2 | P           |                                                                             41.03 |
|       3 | K           |                                                                             15.91 |
|       4 | S           |                                                                              2.8  |

Further, in respect of P&K fertilizers, permissions are granted from time to time to units for domestic production DAP/NPK fertilizers viz. Madhya Bharat Agro product Limited  Unit-II,  Banda  Sagar  and  M/s.  Krishna  PhoschemLtd,MP  for  production  of DAP/NPK  with  installed  capacity  2.40  LMT  per  annum  and  3.30  LMT  per  annum respectively; Indigenously produced PDM or Potash Derived from Molasses (0-0-14.50)  has  been  included  under  NBS  scheme;  Freight  Subsidy  on  SSP  which  is  an indigenously manufactured fertilizers has been  made applicable since  Kharif   2022  ; Exploration for fertilizer minerals for phosphatic and potassic fertilizers, in consultation with Ministry of Mines, GSI, MECL, FAGMIL and concerned State Governments is a continuous  process.  Further, JVs  and  Long  Term  Agreements/MoUs  for  supply  of fertilizers and raw materials are signed by Indian companies with the countries having their sufficient availability from time to time.

The availability  of  chemical  fertilizers  (Urea,  DAP,  MOP  &  NPK)  in  India  has remained comfortable  during  the  ongoing  Kharif  2023  season.    Following  steps  are taken  by the Government every season to ensure adequate and timely availability of fertilizers to the farmers in the country are as under:

- i. Before  the  commencement  of  each  cropping  season,  Department  of Agriculture  and  Farmers  Welfare  (DA&FW),  in  consultation  with  all  the State Governments, assesses the state-wise & month-wise requirement of fertilizers.
- ii. On the basis of requirement projected, Department of Fertilizers allocates sufficient/  adequate  quantities  of  fertilizers  to  States  by  issuing  monthly supply plan and continuously monitors the availability.
- iii. The movement of all major subsidized fertilizers is monitored throughout the country by an on-line web based monitoring system called integrated Fertilizer Monitoring System (iFMS);
- iv. The State Governments are regularly advised to coordinate with manufacturers  and  importers  of  fertilizers  for  streamlining  the  supplies through timely placement of indents for railway rakes through their state institutional agencies like Markfed etc.
- v. Regular  Weekly  Video  Conference  is  conducted  jointly  by  DA&FW  and DoF  with  State  Agriculture  Officials  and  corrective  actions  are  taken  to dispatch fertilizer as indicated by the State Governments.
- vi. The gap between demand (requirement) and production for Urea & other fertilizer is met through imports. The import for the season is also finalized well in advance to ensure timely availability.

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