Lok Sabha Question No. 3034 (UNSTARRED), answered on 2024-12-13
Subject: Import Dependency of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri P V Midhun Reddy, Shri Maddila Gurumoorthy

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

## LOK SABHA

UNSTARRED

## QUESTION NO. 3034 TO BE ANSWERED ON 13.12.2024

## Import Dependency of Fertilizers

3034: SHRI MADDILA GURUMOORTHY: SHRI P V MIDHUN REDDY :

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

- (a) whether Urea imports consisted of 7.6 million metric tons (mt) in 2022-23 with even domestically produced Urea heavily relying of imported natural gas, if so, the details thereof including the measures that have been taken to reduce urea imports;
- (b) whether  the  Government  has  looked  into  developing  alternative  feedstocks and raw materials  as  India's  fertilizer  sector  continues  to  be  dependent  on imports of natural gas, ammonia and fertilizers;
- (c) if so, the details thereof;
- (d) whether the Government has taken any action towards the recommendations made by Standing Committee on Chemicals and Fertilizers  which  included establishing  long-term  agreements  for  import  of  fertilizers'  raw  materials  or setting up joint venture plants in countries rich in fertilizer's raw materials with buy-back arrangements to ensure self-reliance' and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (SMT. ANUPRIYA PATEL)

(a): Yes, 7.58 Million Metric Tonnes of Urea was imported during 2022-23.

As  regards  the  steps  taken  to  reduce  Urea  import,  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.

Accordingly, the import of Urea has been reduced from 75.80 LMT in 202223 to 70.42 LMT in 2023-24.

(b) & (c): Government mandated revival of Talcher Fertilizer unit through formation  of  a  JVC  of  nominated  PSUs  named  Talcher  Fertilizers  Ltd.  (TFL)  for setting  up  Ammonia  urea  plant  of  12.7  LMT  per  annum  capacity  based  on  coal gasification  technology.  On  completion  of  the  project,  the  production  of  urea  in  the country  will  increase  by  12.7  LMTPA  and  will  assist  in  maximizing  the  indigenous production  of  Urea  and  provide  security  in  feedstock  supply  as  a  coal  would  be sourced domestically and providing alternate route of urea production to diversify the feedstock risk in the sector. This  will  also  reduce  the  dependency  on  urea  imports and  import  of  natural  gas  leading  to  savings  in  foreign  exchange  and  maximizing indigenous urea production.

In so far as P&K Sector is concerned, Potash derived from Molasses (PDM) has been inducted under Nutrient Based Subsidy (NBS) Scheme as an alternative to Muriate of Potash (MOP), which is totally imported.

(d) & (e): The Government of India has been actively engaging with countries rich in fertilizer  raw  materials  to  explore  long-term  agreements  for  the  import  of  raw materials  or  the  establishment  of  joint  venture  fertilizer  plants  under  buy-back arrangements.

To achieve this, the Government has facilitated the establishment of several Long-Terms Agreements (LTAs) between Indian companies and foreign companies in fertilizer rich countries.

Additionally,  the  India  fertilizer  companies  have  also  formed  Joint  venture  in fertilizer-rich  nations,  such  as  Oman  India  Fertilizer  Company  (OMIFCO)  in  Oman, Industries  Chimiques  Du  Senegal  (ICS)  in  Senegal,  and  Jordan  India  Fertilizers Company (JIFCO) in Jordan.

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