Lok Sabha Question No. 1017 (UNSTARRED), answered on 2023-12-08
Subject: Shortage of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Vijayakumar (alias) Vijay Vasanth

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

## LOK SABHA

UNSTARRED QUESTION NO. 1017 TO BE ANSWERED ON : 08.12.2023

## Shortage of Fertilizers

## 1017:   SHRI VIJAYKUMAR (ALIAS) VIJAY VASANTH:

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

- (a) whether it is a fact that the production of all forms of fertilizers in the country is just  half  of  the  demand  and  the  remaining was met by imports during 2021-22 and 2022-23 (till now) and even prior to the said years;
- (b) if so, the details thereof;
- (c) whether the Government has made/making efforts to ascertain the reasons for the shortage of fertilizers in the country and if so, the details thereof;
- (d) whether the Government is taking steps to increase local production of all forms of fertilizers to be Atmanirbhar in this regard and if so, the details thereof;
- (e) whether the  Government has  reviewed/is  reviewing  the  present  nutrient  based subsidy policy to remove the disincentives for farmers to use other fertilizers in the country; and
- (f) if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR CHEMICALS & FERTILIZERS

## (SHRI BHAGWANTH KHUBA)

(a)  &  (b):      Fertilizers  are  made  available  to  the  farmers,  majorly  through  indigenous production.  However, the gap between demand-supply is met through imports. The details of  the  total  all  fertilizers  production  in  the  country,  total  all  fertilizers  demand  and  total  all fertilizers imports during 2019-20 to 2021-22, 2022-23 are as under:

| Total All Fertilizers Production, Total All Fertilizers Demand and Total All Fertilizers Import during 2019-20 to 2021-22, 2022-23 (Figures in 'LMT')   | Total All Fertilizers Production, Total All Fertilizers Demand and Total All Fertilizers Import during 2019-20 to 2021-22, 2022-23 (Figures in 'LMT')   | Total All Fertilizers Production, Total All Fertilizers Demand and Total All Fertilizers Import during 2019-20 to 2021-22, 2022-23 (Figures in 'LMT')   | Total All Fertilizers Production, Total All Fertilizers Demand and Total All Fertilizers Import during 2019-20 to 2021-22, 2022-23 (Figures in 'LMT')   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| Year                                                                                                                                                    | Total All Fertilizers Production                                                                                                                        | Total All Fertilizers Demand                                                                                                                            | Total All Fertilizers Imports                                                                                                                           |
| 2019-20                                                                                                                                                 | 425.95                                                                                                                                                  | 581.50                                                                                                                                                  | 184.09                                                                                                                                                  |
| 2020-21                                                                                                                                                 | 433.68                                                                                                                                                  | 601.91                                                                                                                                                  | 203.27                                                                                                                                                  |
| 2021-22                                                                                                                                                 | 435.95                                                                                                                                                  | 640.27                                                                                                                                                  | 182.28                                                                                                                                                  |
| 2022-23                                                                                                                                                 | 485.29                                                                                                                                                  | 628.26                                                                                                                                                  | 187.81                                                                                                                                                  |

(c) to (f):   There is no shortage of fertilizers in the country that has been reported during 2021-22 & 2022-23. 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 (LMTPA). Therefore, these units have together added 76.2 LMT per annum in the existing indigenous urea production capacity of the country which is currently at 283.74 LMTPA.

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 notified New Urea Policy (NUP) - 2015 on 25 th May, 2015 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.

As far as P&K fertilizer 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/semi-annual  basis,  is  provided  on subsidized  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:

|   Sl. No. | Nutrients   |   NBS rates for Rabi 2023-24 (Rs. Per kg of nutrient) ( from 1.10.2023 to 31.3.2024) |
|-----------|-------------|--------------------------------------------------------------------------------------|
|         1 | N           |                                                                                47.02 |
|         2 | P           |                                                                                20.82 |
|         3 | K           |                                                                                 2.38 |
|         4 | S           |                                                                                 1.89 |

The steps taken by the Government every season to ensure adequate and timely availability of fertilizers to the farmers 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 requirement of fertilizers.    After  assessment  of  requirement,  DA&FW projects  month-wise requirement of fertilizers.

(ii) On the basis of month-wise & State-wise projection given by DA&FW, 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  being  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.

(v) Regular Weekly Video Conference is conducted jointly by Department of Agriculture and Farmers Welfare (DA&FW) and Department of Fertilizers (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  in  case  of  urea,  is  met through timely imports. In case of P&K fertilizers, the imports come under Open & General license and  fertilizer companies  import  these fertilizers based  on  their commercial judgements.

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