Lok Sabha Question No. 62 (STARRED), answered on 2025-02-07
Subject: Production of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Smt. Lovely Anand, Shri Dinesh Chandra Yadav

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

## LOK SABHA

STARRED QUESTION NO. 62* TO BE ANSWERED ON

: 07.02.2025

## Production of Fertilizers

*62:

SMT.  LOVELY ANAND: SHRI  DINESH CHANDRA YADAV:

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

- (a) the steps taken by the Government to achieve self-sufficiency in the production of fertilizers during the last five years;
- (b) whether  the  Government  has  any  plans  to  set  up  fertilizer  plants  in  States which consume more fertilizers like Bihar, if so, the details thereof;
- (c) whether  the  Government  is  not  keen  in  setting  up  of  fertilizer  plants  in  the country because of cheaper prices of imported fertilizers; and
- (d) if so, the details thereof?

## ANSWER

MINISTER FOR CHEMICALS & FERTILIZERS AND HEALTH & FAMILY WELFARE

(SHRI JAGAT PRAKASH NADDA)

(a) to (d): A statement is laid on the table of the House.

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## STATEMENT REFERRED TO LOK SABHA STARRED QUESTION NO. *62 FOR ANSWERING  ON  07.02.2025  REGARDING  'PRODUCTION  OF  FERTILIZERS' ASKED BY SMT LOVELY ANAND AND SHRI DINESH CHANDRA YADAV

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(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.

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 2014-15 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.

With regard to P & K fertilizers, the Government has implemented Nutrient Based  Subsidy  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/biannual  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/develop  domestic  production  capacities  of  fertilizers  as  per the market dynamics. Further, to reduce dependency on imported fertilizers, the following measures have been taken by the Government & private sector:

(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) Potash  derived from Molasses  (PDM)  which  is  100%  indigenously manufactured fertilizer has been notified under Nutrient based subsidy (NBS) scheme.

(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.

As  a  result  of  the  above  steps,  the  installed  capacity  of  P&K  fertilizers  has increased  from  146.24  LMT  during  2014-15  to  160.50  LMT  during  2023-24. Similarly,  the  installed  capacity  of  SSP  has  increased  from  96.07  LMT  during 2014-15 to 123.15 LMT during 2023-24.

(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 web-based 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 |
| 2021-22 | 250.72     | 341.73      | 91.36  |
| 2022-23 | 284.94     | 357.26      | 75.80  |
| 2023-24 | 314.07     | 357.81      | 70.42  |

(in LMT)

| 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 |

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