Lok Sabha Question No. 3061 (UNSTARRED), answered on 2024-12-13
Subject: Import of Urea and DAP from China
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Thiru D M Kathir Anand

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

UNSTARRED

QUESTION NO.

3061 TO BE ANSWERED ON 13.12.2024

## Import of Urea and DAP from China

3061:

SHRI THIRU D M KATHIR ANAND:

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

- (a) whether it is a fact that our country is unable to produce enough fertilizer to meet its needs, if so, the details thereof
- (b) whether it is true that India is the top importer of urea and major buyer of diammonium phosphate (DAP), if so, the details  of  the  total  imports  made during the last three years, year-wise;
- (c) whether the country depends on import of large quantities of Urea and DAP from China, if so, the details thereof; and
- (d) the  details  of  the  measures  taken  by  the  Government  to  reduce  the  high dependency on Chinese imports?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (SMT. ANUPRIYA PATEL)

(a): The  indigenous production of fertilizers is not commensurate  with  the requirement  in  the  country  and  the  gap  is  fulfilled  through  imports.  The  details  of production, consumption and imports of fertilizers  during last three  years are given below:-

| UREA    | UREA       | UREA        | UREA   |
|---------|------------|-------------|--------|
| Year    | Production | Consumption | Import |
| 2021-22 | 250.72     | 341.73      | 91.36  |
| 2022-23 | 284.94     | 357.26      | 75.80  |
| 2023-24 | 314.07     | 357.81      | 70.42  |

| P&K     | P&K        | P&K         | P&K    |
|---------|------------|-------------|--------|
| Year    | Production | Consumption | Import |
| 2021-22 | 185.23     | 294.70      | 90.92  |
| 2022-23 | 200.35     | 279.12      | 112.01 |
| 2023-24 | 189.26     | 288.42      | 106.53 |

(b) & (c): The details of the total imports (including from China) made during the last three years  viz., 2021-22 to 2023-24 is attached as Annexure .

(d): 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.

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

With  regard  to  P&K  Fertilizers,  the  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/bi-annual 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.

The Government has taken following measures to promote indigenous fertilizer and self-sufficiency in the agriculture sector:

- (i) Potash derived from Molasses (PDM) which is 100% indigenously manufactured  fertilizer  has  been  notified  under  Nutrient  Based  Subsidy (NBS) scheme.
- (ii) 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.

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## Annexure

## Annexure referred to in reply to part (b) & (c) of Lok Sabha Unstarred Question No. 3061 for answering on 13.12.2024

| Country Wise Import of Urea &DAPduring 2021-22 to 2023-24   | Country Wise Import of Urea &DAPduring 2021-22 to 2023-24   | Country Wise Import of Urea &DAPduring 2021-22 to 2023-24   | Country Wise Import of Urea &DAPduring 2021-22 to 2023-24   | Country Wise Import of Urea &DAPduring 2021-22 to 2023-24   | Country Wise Import of Urea &DAPduring 2021-22 to 2023-24   | Country Wise Import of Urea &DAPduring 2021-22 to 2023-24   |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
|                                                             | 2021-22                                                     | 2021-22                                                     | 2022-23                                                     | 2022-23                                                     | <Figures in Lakh MT)                                        | <Figures in Lakh MT)                                        |
| Country Name                                                | Urea                                                        | DAP                                                         | Urea                                                        | DAP                                                         | Urea                                                        | 2023-24 DAP                                                 |
| Algeria                                                     | 1.72                                                        | -                                                           | 3.07                                                        |                                                             | 0.35                                                        |                                                             |
| Australia                                                   | -                                                           | 0.52                                                        |                                                             | 1.51                                                        |                                                             |                                                             |
| Bahrain                                                     | 2.28                                                        | -                                                           | 1.77                                                        |                                                             | 0.94                                                        |                                                             |
| China                                                       | 25.91                                                       | 18.15                                                       | 12.80                                                       | 12.17                                                       | 18.65                                                       | 22.28                                                       |
| Egypt                                                       | 7.43                                                        | 0.68                                                        | 2.63                                                        |                                                             | 0.92                                                        | 0.18                                                        |
| Estonia                                                     | 0.16                                                        | -                                                           | 0.09                                                        |                                                             |                                                             |                                                             |
| Finland                                                     | 1.52                                                        | -                                                           | 7.69                                                        |                                                             | 1.41                                                        | 0.33                                                        |
| Georgia                                                     | 2.00                                                        | -                                                           | 1.98                                                        |                                                             |                                                             |                                                             |
| Indonesia                                                   | 2.33                                                        | -                                                           | 1.34                                                        |                                                             | 2.16                                                        |                                                             |
| Israel                                                      | -                                                           | -                                                           |                                                             | 0.44                                                        |                                                             |                                                             |
| Jordan                                                      | -                                                           | 2.07                                                        |                                                             | 1.65                                                        |                                                             | 1.74                                                        |
| Latvia                                                      | 1.06                                                        | -                                                           |                                                             |                                                             |                                                             |                                                             |
| Libya                                                       | 0.47                                                        | -                                                           |                                                             |                                                             |                                                             |                                                             |
| Nigeria                                                     | 1.69                                                        | -                                                           | 1.39                                                        |                                                             |                                                             |                                                             |
| Malaysia                                                    | 1.75                                                        | -                                                           | 1.59                                                        |                                                             | 1.42                                                        |                                                             |
| MEXICO                                                      | -                                                           | 0.61                                                        |                                                             |                                                             |                                                             |                                                             |
| Morocco                                                     | -                                                           | 11.60                                                       |                                                             | 17.47                                                       |                                                             | 11.13                                                       |
| Oman                                                        | 15.88                                                       | -                                                           | 19.60                                                       |                                                             | 19.53                                                       |                                                             |
| Qatar                                                       | 3.87                                                        | -                                                           | 5.02                                                        |                                                             | 1.70                                                        |                                                             |
| Russia                                                      | 2.80                                                        | 1.96                                                        | 6.26                                                        | 9.24                                                        | 15.73                                                       | 3.41                                                        |
| Saudi-Arabia                                                | 4.92                                                        | 18.59                                                       | 4.61                                                        | 21.22                                                       | 2.36                                                        | 16.29                                                       |
| TUNISIA                                                     | -                                                           | 0.44                                                        |                                                             | 0.85                                                        |                                                             |                                                             |
| UAE                                                         | 7.95                                                        | -                                                           | 4.16                                                        |                                                             | 5.08                                                        |                                                             |
| Ukraine                                                     | 5.89                                                        | -                                                           |                                                             |                                                             |                                                             |                                                             |
| USA                                                         | -                                                           | -                                                           | 0.49                                                        | 1.28                                                        |                                                             | 0.31                                                        |
| Vietnam                                                     | 1.73                                                        | -                                                           | 1.31                                                        |                                                             | 0.17                                                        |                                                             |
| Grand Total:                                                | 91.36                                                       | 54.62                                                       | 75.80                                                       | 65.83                                                       | 70.42                                                       | 55.67                                                       |

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