Lok Sabha Question No. 296 (STARRED), answered on 2025-08-08
Subject: Setting up of Fertilizer Factory in Meerut
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Arun Govil

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

## LOK SABHA

## STARRED QUESTION NO. †*296 TO BE ANSWERED ON 08.08.2025

## Setting up of Fertilizer Factory In Meerut

## †*296.   SHRI ARUN GOVIL:

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

- (a)  whether India imports fertilizers from China and Russia, if so, the details thereof;
- (b)  the action plan to overcome the shortage and become self reliant in production of chemical fertilizers in the country;
- (c)  whether the Government proposes to set up a chemical fertilizer factory in Meerut, Uttar Pradesh; and
- (d)  if so, the time-line by which the said factory is likely to be set up?

## ANSWER

MINISTER OF HEALTH & FAMILY WELFARE AND CHEMICALS AND FERTILIZERS (SHRI JAGAT PRAKASH NADDA)

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

STATEMENT REFERRED TO PART (a) TO (d) OF THE LOK SABHA STARRED QUESTION NO †*296 FOR 08.08.2025 REGARDING 'SETTING UP OF FERTILIZER FACTORY IN MEERUT':

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- (a) : The details of fertilizers Imported from China and Russia during the past three years, year-wise are as follow:

<Qty in LMT>

| Year                                                  | Country                                               | Urea                                                  | DAP                                                   | MOP*                                                  | NPK                                                   |
|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|
|                                                       |                                                       |                                                       | As reported by the Companies                          | As reported by the Companies                          | As reported by the Companies                          |
| 2022-23                                               | China                                                 | 12.80                                                 | 12.17                                                 | -                                                     | 0.83                                                  |
| 2022-23                                               | Russia                                                | 6.26                                                  | 9.24                                                  | 0.85                                                  | 22.21                                                 |
| 2023-24                                               | China                                                 | 18.65                                                 | 22.28                                                 | -                                                     | 0.30                                                  |
| 2023-24                                               | Russia                                                | 15.73                                                 | 3.41                                                  | 12.36                                                 | 17.04                                                 |
| 2024-25                                               | China                                                 | 0.99                                                  | 8.47                                                  | -                                                     | 0.77                                                  |
| 2024-25                                               | Russia                                                | 9.23                                                  | 2.69                                                  | 18.00                                                 | 18.27                                                 |
| * MOP includes both agricultures use & Industrial use | * MOP includes both agricultures use & Industrial use | * MOP includes both agricultures use & Industrial use | * MOP includes both agricultures use & Industrial use | * MOP includes both agricultures use & Industrial use | * MOP includes both agricultures use & Industrial use |

The import from China has significantly reduced in 2024-25 as compared to previous two years.

- (b): The availability  of  fertilizers  viz.  Urea,  DAP,  NPKS  and  MOP  has  remained adequate across the country during the ongoing Kharif-2025 season as below:

| ALL INDIA FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025 )   | ALL INDIA FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025 )   | ALL INDIA FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025 )   | ALL INDIA FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025 )   | ALL INDIA FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025 )   | ALL INDIA FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025 )   | ALL INDIA FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025 )   |
|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|
| FIG. IN                                                            | FIG. IN                                                            | FIG. IN                                                            | FIG. IN                                                            | FIG. IN                                                            | LMT                                                                | LMT                                                                |
| S.No                                                               | Product                                                            | Seasonal Requirement for KHARIF 2025                               | Pro rata Requirement From 01/04/2025 to 04/08/2025                 | Availability From 01/04/2025 to 04/08/2025                         | Cumulative DBT Sales From 01/04/2025 to 04/08/2025                 | Closing Stock as on 04/08/2025                                     |
| 1                                                                  | 185.39                                                             | 124.41                                                             | 165.80                                                             | 131.56                                                             | 34.29                                                              | UREA                                                               |
| 2                                                                  | 56.99                                                              | 40.35                                                              | 42.38                                                              | 28.39                                                              | 14.01                                                              | DAP                                                                |
| 3                                                                  | 11.13                                                              | 7.44                                                               | 13.41                                                              | 7.40                                                               | 6.02                                                               | MOP                                                                |
| 4                                                                  | 76.11                                                              | 50.38                                                              | 88.93                                                              | 55.22                                                              | 33.71                                                              | NPKS                                                               |

Further, following steps are taken by the Government every season for ensuring timely and adequate supply of fertilizers in the country:

- 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.  This requirement is met through indigenous production and imports planned well in advance.
- 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.  Regular Weekly Video Conference is conducted jointly by DA&FW and D/o Fertilizers with State Agriculture Officials and corrective actions are taken to dispatch fertilizers as indicated by the State Governments.

With regard to Urea, the Government had announced New Investment Policy (NIP)  -  2012  on  2nd  January,  2013  and  its  amendment  on  7thOctober,  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 which includes 4 urea units set up through Joint Venture Companies (JVC) of nominated PSUs and 2  urea  units  set  up  by  the  private  companies.  The  units  set  up  through  JVC  are 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. The units set up by private companies are Panagarh urea unit of Matix Fertilizers and Chemicals Ltd. (Matix) in West Bengal; and Gadepan-III urea unit of Chambal Fertilizers and Chemicals Ltd. (CFCL) in Rajasthan. Each of these units has installed capacity of 12.7 Lakh Metric Tonne per annum (LMTPA). These units are highly energy efficient as they are based on latest technology. Therefore, these units have  together  added  urea  production  capacity  of  76.2  LMTPA,  thereby  total indigenous  urea  production  capacity  (Reassessed  Capacity,  RAC)  has  increased from 207.54 LMTPA during 2014-15 to 283.74 LMTPA during 2023-24. Further, an exclusive  policy  for  the  revival  of  Talcher  unit  of  FCIL  through  JVC  of  nominated PSUs namely Talcher Fertilizers Limited (TFL) by setting up a new Greenfield urea plant of 12.7 LMTPA at coal gasification route has also been approved. Recently, the Union  Cabinet  has  approved  the  proposal  for  setting  up  of  a  new  Brownfield Ammonia-Urea Complex of 12.7 Lakh Metric Tonnes (LMT) annual capacity of Urea production within the existing premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup, Assam.

In addition, the Government also notified the New Urea Policy (NUP) - 2015 on 25thMay, 2015 for the existing 25 gas-based urea units with one of the objectives of maximizing indigenous urea production beyond RAC.  The NUP-2015 has led to additional production of urea by 20-25 LMT as compared to the production during 2014-15 annually.

Above steps together have facilitated increase of Urea production from level of 225 LMT per annum during 2014-15 to 306.67 LMT of Urea during 2024-25.

The  Government  has  implemented  Nutrient  Based  Subsidy  Policy  w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under the policy, a fixed amount of subsidy, decided on annual/bi-annual basis, is provided on notified P&K fertilizers depending on their nutrient content. Under NBS policy, P&K fertilizers are covered under Open General License (OGL) and companies are free to import these fertilizers as per their business dynamics.

To increase fertilizer production, following measures have been taken by the Government:

(i)  Based  on  the  requests,  the  new  manufacturing  units  or  increase  in manufacturing  capacity  of  existing  units  have  been  recognized  /  taken  on record under the NBS subsidy scheme, with a view to boost manufacturing and make country self-reliant in fertilizer production.

(ii) The number of P&K fertilizers covered under NBS policy has increased from 22 grades in 2021 to 28 grades with a view to boost manufacturing and make country self-reliant in fertilizer production.

(iii) Freight Subsidy on SSP, which is an indigenously manufactured fertilizer, is applicable since Kharif, 2022 to promote SSP usage for providing Phosphatic or 'P' nutrient to the soil.

(c) & (d): There is no proposal of Government to set up a Urea factory in Meerut, Uttar Pradesh.

*****