Lok Sabha Question No. 2265 (UNSTARRED), answered on 2025-08-01
Subject: Self-Reliance in Production of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Rajesh Ranjan

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2265 TO BE ANSWERED ON: 01.08.2025

## Self-Reliance in Production of Fertilizers

## †2265. SHRI RAJESH RANJAN:

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

- (a) the  steps  taken  by  the  Government  to  become  self-reliant  in  production  of fertilizers during the last five years;
- (b) whether the Government proposes to set up fertilizer plant in States having higher consumption of fertilizer like Bihar;
- (c) whether the Government is disinclined to set up a fertilizer plants in the country due to low cost of imported fertilizer; and
- (d) if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (SMT. ANUPRIYA PATEL)

(a): With regard to Urea, the Government had announced New Investment Policy (NIP) - 2012 on 2nd 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 capacity of 76.2 LMTPA, thereby total indigenous urea production capacity (Reassessed Capacity, RAC) has increased from 207.54 LMTPA during 2014-15 to 283.74 LMTPA during 2023-24. Further, an

exclusive policy for the revival of Talcher unit of FCIL through JVC of nominated PSUs namely Talcher Fertilizers Limited (TFL) by setting up a new Greenfield urea plant of 12.7 LMTPA at coal gasification route has also been approved. Recently, the Union Cabinet has approved the proposal for setting up of a new Brownfield Ammonia-Urea Complex of 12.7 Lakh Metric Tonnes (LMT) annual capacity of Urea production within the  existing  premises of  Brahmaputra Valley  Fertilizer Corporation Limited  (BVFCL), Namrup, Assam.

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  beyond  RAC.    The  NUP-2015  has  led  to additional production of urea by 20-25 LMT as compared to the production during 201415 annually.

Above 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. During 2024-25, 306.67 LMT of Urea was produced in the country.

Government has implemented Nutrient Based Subsidy (NBS) 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/bi-annual  basis,  is  provided  on  notified  P&K  fertilizers depending on their nutrient content. Under NBS policy, P&K fertilizers are covered under Open General License (OGL) and companies are free to import these fertilizers as per their  business  dynamics. To  become  self-reliant  in  production  of fertilizers,  following measures have been taken by the Government:

(i)   Based on the requests, the new manufacturing units or increase in manufacturing capacity of existing units have been recognized / taken on record under the NBS subsidy scheme, with a view to boost manufacturing and make country self-reliant in fertilizer production.

(ii)    The  number of P&K fertilizers covered under NBS policy has increased from 22 grades in 2021 to 28 grades with a view to boost manufacturing and make country selfreliant in fertilizer production.

(iii)      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.

(b): The setting up of fertilizer plant in a state is primarily based on the viability and not on the consumption trend of fertilizers at that place. Before the commencement of each  cropping  season,  Department  of  Agriculture  and  Farmers  Welfare  (DA&FW) assesses the State-wise & Month-wise requirement of fertilizers. To fulfil this

requirement of fertilizers in the States as per the assessment done by DA&FW, D/o Fertilizers allocates adequate quantities of fertilizers to the States by issuing monthly supply  plans.  These  supplies  are  met  through  indigenous  production  as  well  as imports. The movement of all major subsidized fertilizers is monitored through webbased monitoring system called integrated Fertilizer Monitoring System (iFMS).

(c & d): As stated at (a) above, the Government has taken various effective steps to achieve self-sufficiency  in  the  production  of  fertilizers  in  the  country.  However,  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 :-

(in LMT)

| UREA    | UREA       | UREA        | UREA   |
|---------|------------|-------------|--------|
| Year    | Production | Consumption | Import |
| 2022-23 | 284.94     | 357.26      | 75.80  |
| 2023-24 | 314.07     | 357.81      | 70.42  |
| 2024-25 | 306.67     | 387.92      | 56.47  |

(in LMT)

| P&K     | P&K        | P&K         | P&K    |
|---------|------------|-------------|--------|
| Year    | Production | Consumption | Import |
| 2022-23 | 200.35     | 279.12      | 112.01 |
| 2023-24 | 189.26     | 288.42      | 106.53 |
| 2024-25 | 211.21     | 317.31      | 103.82 |

***