Lok Sabha Question No. 2227 (UNSTARRED), answered on 2025-08-01
Subject: Indigenous Production of  Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Ramasahayam Raghuram Reddy

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2227 TO BE ANSWERED ON : 01.08.2025

## Indigenous Production of Fertilizers

## 2227.  SHRI RAMASAHAYAM RAGHURAM REDDY:

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

- a.  the steps undertaken by the Government to develop indigenous reserves of potash so as to reduce the dependence on imports;
- b.  the steps taken to ramp up the production of Ammonium Nitrate in order to reduce the dependence on imports;
- c.  whether the Government plans to offer protection in terms of subsidies or import barriers in order to provide support to indigenous manufacturers of Ammonium Nitrate against cheap imports,  particularly  from  Russia, if so details thereof; and
- d.  whether  the  Government  has  a  blueprint  to  promote  research  and development for development of green fertilizers and insecticides, if so, the details thereof?

## ANSWER MINISTER OF STATE FOR CHEMICALS & FERTILIZERS

## (SMT. ANUPRIYA PATEL)

(a): Potash and Glauconite(Potassic mineral) have been classified as Critical and Strategic  Minerals  under  'The  Mines  &  Minerals  (Development  and  Regulation) Amendment (MMDR) Act, 2023' by Ministry of Mines which aims to enhance domestic production and achieve self- sufficiency in critical minerals. MMDR Act, 1957 ensures that critical minerals are produced, processed, and recycled by catalyzing investments from governments and the private sector across the full value chain, emphasizing the

-2- importance  of  sustainable  and  responsible  mineral  management  practices.  The Central Government has also commenced the auction of mineral blocks for critical & strategic minerals as per provisions of MMDR Act, 1957. As on 24.07.2025, Ministry of  Mines  have  successfully  auctioned  7  mineral  blocks  of  Glauconite  (Potassic mineral).

Further, Potash Derived from Molasses (PDM) which  is a by-product of sugar industry,  has  minimum  14.5%  potash  and  can  be  used  by  farmers  in  field  as  an alternative  to  MOP  (Muriate  of  Potash  with  60%  potash  content).  Thus,  PDM  can reduce the dependence on imported potash. PDM was notified under Fertilizer Control Order (1985) in 2009, and in order to incentivize the use of PDM, it was inducted under Nutrient Based Subsidy scheme since Rabi, 2022. During 2024-25, Rs. 345 per tonne of subsidy has been fixed for PDM.

(b): Chemical sector is broadly de-regulated and delicensed sector. The manufacturing,  import,  export,  transportation  etc.  of  Ammonium  Nitrate  are  being regulated  by  Ammonium  Nitrate  Rules,  2012.  Petroleum  and  Explosives  Safety Organisation (PESO) issues licenses for manufacture, storage, transportation, import and export of Ammonium Nitrate under these rules. The licenses for manufacturing of Ammonium Nitrate are issued based on Industrial Licenses issued by Department of Promotion of Industry & Internal Trade (DPIIT).

(c): In Budget 2024-25, Basic Custom Duty (BCD) on Ammonium Nitrate increased from  7.5%  to  10%  to  support  existing  and  new  capacities  in  pipeline.  Directorate General  of  Trade  Remedies  (DGTR),  Department  of  Commerce  provides  a  level playing platform to the domestic industry against the adverse impact of the unfair trade practices viz. dumping, actionable subsidies, circumvention etc. from any exporting country  by  using  effective  Trade  Remedial  measures  such  as  anti-dumping  and safeguard measures. However, currently, there are no pending applications seeking protection in terms of import barriers like anti-dumping duty or countervailing duty/antisubsidy duty on Ammonium Nitrate.

(d): The Government has approved the Market Development Assistance (MDA) @ Rs. 1500/MT to promote organic fertilizers, i.e. manure produced at plants under

GOBARdhan initiative covering different Biogas/CBG support schemes/programmes of  stakeholder  Ministries/Departments  such  as  Sustainable  Alternative  Towards Affordable Transportation (SATAT) scheme of Ministry of Petroleum and Natural Gas (MoPNG), 'Waste to Energy' programme  of  Ministry  of  New  &  Renewable  Energy (MNRE), Swachh Bharat Mission (Rural) of Department of Drinking Water & Sanitation (DDWS), etc. with total outlay of Rs. 1451.84 crore (FY 2023-24 to 2025-26), which includes a corpus of Rs. 360 crore for research gap funding, etc.

Further, Institute of Pesticides Formulation and Technology works on supporting adoption of greener technologies and development of user & environment friendly new pesticide  formulations.  UNIDO  FARM  (Financing  Agrochemical  Reduction  and Management) Project undertaken by HIL (India) Ltd. to detoxify the agriculture sector by  eliminating  the  use  of  highly  hazardous  pesticides  and  Persistent  Organic Pollutants.  The  project  focuses  on  three  types  of  bio-pesticides:  Btk  (Bacillus thuringiensis  kurstaki), Neem,  and Trichoderma  spp. Btk, a strain of the  bacterium Bacillus thuringiensis, which is effective for controlling caterpillar pests, while Neem controls a wide range of insect pests. Trichoderma provides effective control against soil-borne fungal diseases and enhances plant growth.

*****