Lok Sabha Question No. 377 (STARRED), answered on 2024-12-20
Subject: Domestic Production of  Fertilisers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Dilip Saikia, Shri Jagdambika Pal

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

STARRED QUESTION NO. 377* TO BE ANSWERED ON:20.12.2024

## Domestic Production of Fertilisers

*377:

SHRI  JAGDAMBIKA PAL:

SHRI  DILIP SAIKIA:

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

- (a)  the specific measures undertaken by the Government to enhance the domestic production and supply of fertilizers in India;
- (b)  the manner in which the Government plans to address the challenges faced by farmers regarding fertilizer availability and affordability in the current agricultural landscape;
- (c)  the  role  of  public-private  partnerships  in  the  Government's  strategy  to  increase fertilizer  production  and  ensure  a  stable  supply  for  agricultural  needs  in  the country; and
- (d)  the  details  of  the  domestic  production  of  fertilizer  and  supply  of  the  same  in Palghar district of Maharashtra during the last three years, year-wise?

## ANSWER

MINISTER FOR CHEMICALS & FERTILIZERS AND HEALTH & FAMILY WELFARE

(SHRI JAGAT PRAKASH NADDA)

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

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## STATEMENT REFERRED TO LOK SABHA STARRED QUESTION NO. *377 FOR ANSWERING  ON  20.12.2024 REGARDING  'DOMESTIC PRODUCTION  OF FERTILISERS' ASKED BY SHRI JAGDAMBIKA PAL  AND SHRI DILIP SAIKIA.

(a): With regard to Urea, 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  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 of 76.2 LMTPA thereby total production urea production capacity has increased from 207.54 LMTPA during 2014-15 to 283.74 LMTPA at present.

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

These steps together have facilitated increase of Urea production from level of 225 LMT per annum during 2014-15 to a record Urea Production at 314.07 LMT during 2023-24.

With  regard  to  P&K  Fertilizers,  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/biannual  basis,  is  provided  on  notified  P&K  fertilizers  depending  on  their  nutrient content. The P&K sector is decontrolled and the fertilizer companies manufacture/import fertilizers as per the market dynamics.To enhance the domestic  production  and  supply  of  fertilizers  in  India,  the  Government  has notifiedPotash derived from Molasses (PDM) which is 100% indigenously manufactured fertilizer under Nutrient based subsidy (NBS) scheme.

(b): Under  the  Urea  Subsidy  Scheme,  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 rate.

Under  Nutrient  Based  Subsidy  (NBS)  scheme,  subsidy  is  fixed  keeping  in view international prices of key fertilizers & raw materials and fluctuations, if any, are  subsumed  while  fixing  NBS  rates  for  P&K  fertilizers  annually  /  bi-annually. During Kharif  2024,  the  subsidy  per  MT  in  respect  of  DAP  was  ₹21676  whereas during  Rabi  2024-25,  the  subsidy  per  MT  in  respect  of  DAP  has  been  fixed  at ₹21911.  In  addition,  in  order  to  ensure  smooth  availability  of  DAP  at  affordable prices  to  farmers,  Government  has  provided  special  packages  on  DAP  over  and above  the  NBS  subsidy  rates  on  need  basis.  In  2024-25,  the  Government  has approved one-time special package on DAP beyond the NBS rates on actual PoS (Point of Sale) sale of DAP for the period from 01.04.2024 till 31.12.2024 @ ₹ 3500 per  MT  to  the  P&K  fertilizer  companies  with  approximate  financial  implication  of ₹2625 crores to ensure sustainable availability of DAP at affordable prices to the farmers  and  support  the  agriculture  sector  and  related  activities  and  strengthen food security scenario in the country.

Further,  the  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.
- 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.
- v. The gap between demand (requirement) and production of fertilizers is met through imports. The import for the season is also finalized well in advance to ensure timely availability.
6. (c): Presently, there are no such specific public-private partnerships.

(d): There  was  no  domestic  production  of  fertilizers  in Palghar  District of Maharashtra during the last three years.  With regard to the supply of fertilizers in Palghar  District,  the  supply  of  fertilizers  in  Palghar  District  of  Maharashtra  are 24690 MT, 19980 MT and 22890 MT during the year 2021-22, 2022-23 and 202324 respectively.

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