Lok Sabha Question No. 2647 (UNSTARRED), answered on 2023-08-04
Subject: Fertilizer Shortage due to Russia-Ukraine War
Ministry: CHEMICALS AND FERTILIZERS
Asked by: P. Velusamy

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

## LOK SABHA

UNSTARRED QUESTION NO. 2647 TO BE ANSWERED

ON: 04.08.2023

## Fertilizer Shortage Due to Russia-Ukraine War

## 2647:  SHRI VELUSAMY P.:

Will the Minister o f CHEMICALS AND FERTILIZERS be pleased to state:

- (a)     whether the Government is aware of the fact that due to Russia-Ukraine war the fertilizers shortage has severely affected the agricultural production;
- (b)       then if so, the details thereof;
- (c)      the  steps  taken/proposed  to  be  taken  by  the  Government  to  overcome  this shortage;
- (d)        whether  the  Government  has  allowed tax free  import of fertilizers  and  if  so,  the details thereof;
- (e)     the quantum and value of the fertilisers imported during the past three years and the current year, year-wise; and
- (f)       the steps taken/proposed to be taken by the Government to reduce expenditure on imports by the country and boost indigenous fertilizer manufacturing units in India?

## ANSWER

## MINISTER OF STATE FOR CHEMICALS & FERTILIZERS (SHRI BHAGWANTH KHUBA)

(a) to (c): The Russia Ukraine war resulted in increase in prices of fertilizers and its raw materials at global level. However, Government of India has ensured availability of fertilizers at reasonable prices by increasing the quantum of subsidies. The expenditure incurred  on  the  fertilizers'  subsidy  in  2021-22  was  Rs.  1,57,640.09  Crores  which increased  to  Rs.  2,54,798.93  Crores  in  2022-23.  Government  of  India  also  facilitated long term agreements and Joint Ventures (JVs) to ensure adequate supply of fertilizers. Further, the adequate availability of fertilizers in India has been ensured in last 2 years and in the ongoing season as stated below:

| AVAILABILITY SCENARIO OF FERTILIZERS FOR THE SAID PERIOD   | AVAILABILITY SCENARIO OF FERTILIZERS FOR THE SAID PERIOD   | AVAILABILITY SCENARIO OF FERTILIZERS FOR THE SAID PERIOD   | AVAILABILITY SCENARIO OF FERTILIZERS FOR THE SAID PERIOD   | AVAILABILITY SCENARIO OF FERTILIZERS FOR THE SAID PERIOD   | AVAILABILITY SCENARIO OF FERTILIZERS FOR THE SAID PERIOD   | AVAILABILITY SCENARIO OF FERTILIZERS FOR THE SAID PERIOD   | AVAILABILITY SCENARIO OF FERTILIZERS FOR THE SAID PERIOD   | AVAILABILITY SCENARIO OF FERTILIZERS FOR THE SAID PERIOD   | AVAILABILITY SCENARIO OF FERTILIZERS FOR THE SAID PERIOD   |
|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|
|                                                            |                                                            |                                                            |                                                            |                                                            |                                                            |                                                            | Fig. in LMT                                                | Fig. in LMT                                                | Fig. in LMT                                                |
|                                                            | 2021-22                                                    | 2021-22                                                    | 2021-22                                                    | 2022-23                                                    | 2022-23                                                    | 2022-23                                                    | 2023-24 (TILL 1.08.2023)                                   | 2023-24 (TILL 1.08.2023)                                   | 2023-24 (TILL 1.08.2023)                                   |
| PRODUCT                                                    | REQ                                                        | AVL                                                        | SALES                                                      | REQ                                                        | AVL                                                        | SALES                                                      | REQ                                                        | AVL                                                        | SALES                                                      |
| UREA                                                       | 356.53                                                     | 389.68                                                     | 341.73                                                     | 359.19                                                     | 415.82                                                     | 357.26                                                     | 116.71                                                     | 169.53                                                     | 109.44                                                     |
| P&K                                                        | 283.74                                                     | 263.28                                                     | 237.95                                                     | 269.06                                                     | 288.63                                                     | 228.94                                                     | 93.95                                                      | 151.93                                                     | 68.57                                                      |
| #P&K GROUP INCLUDES DAP, MOP & NPKS                        | #P&K GROUP INCLUDES DAP, MOP & NPKS                        | #P&K GROUP INCLUDES DAP, MOP & NPKS                        | #P&K GROUP INCLUDES DAP, MOP & NPKS                        | #P&K GROUP INCLUDES DAP, MOP & NPKS                        | #P&K GROUP INCLUDES DAP, MOP & NPKS                        | #P&K GROUP INCLUDES DAP, MOP & NPKS                        | #P&K GROUP INCLUDES DAP, MOP & NPKS                        | #P&K GROUP INCLUDES DAP, MOP & NPKS                        | #P&K GROUP INCLUDES DAP, MOP & NPKS                        |

- (d): No, Sir.

(e): P&K  fertilizers  are  covered  under  Open  General  License  (OGL)  under  the Nutrient  Based  Subsidy  Scheme  (NBS).  They  are  imported  by  the  companies  on commercially  viable  terms.  The  value  of  P&K  fertilizers  are  not  maintained  in  the Department. The quantum of P&K fertilizers and quantum & value of the Urea imported during the past three years and the current year, year-wise is given in the table below:

| Import of fertilizers (Urea, DAP, MOP & NPK) from the year 2020-21 to 2023-24 (Till June, 2023)   | Import of fertilizers (Urea, DAP, MOP & NPK) from the year 2020-21 to 2023-24 (Till June, 2023)   | Import of fertilizers (Urea, DAP, MOP & NPK) from the year 2020-21 to 2023-24 (Till June, 2023)   | Import of fertilizers (Urea, DAP, MOP & NPK) from the year 2020-21 to 2023-24 (Till June, 2023)   | Import of fertilizers (Urea, DAP, MOP & NPK) from the year 2020-21 to 2023-24 (Till June, 2023)   | Import of fertilizers (Urea, DAP, MOP & NPK) from the year 2020-21 to 2023-24 (Till June, 2023)   |
|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
|                                                                                                   |                                                                                                   |                                                                                                   |                                                                                                   | MOP                                                                                               | <Qty in LMT>                                                                                      |
| Year Urea                                                                                         | Value in                                                                                          | Million US$                                                                                       | As reported by companies                                                                          | As reported by companies                                                                          | As reported by companies                                                                          |
| 2020-21 98.28                                                                                     | 2580.27                                                                                           |                                                                                                   | 48.82                                                                                             | 42.27                                                                                             | 13.90                                                                                             |
| 91.36                                                                                             | 6041.06                                                                                           | 54.62                                                                                             |                                                                                                   | 24.60                                                                                             | 2021-22 11.70                                                                                     |
| 75.80                                                                                             | 4751.29                                                                                           | 65.83                                                                                             |                                                                                                   | 18.66                                                                                             | 2022-23 27.52                                                                                     |
| 2023-24 June, 2023) 11.41                                                                         | 373.99                                                                                            | 20.88                                                                                             |                                                                                                   | 11.92                                                                                             | 8.57                                                                                              |

(f): In order to increase the availability of urea through indigenous  sources, Government of India announced New Investment Policy (NIP) - 2012 to facilitate fresh investment in the Urea sector and to make India self sufficient in the Urea sector. A total of 6 new Urea units have been set up under NIP - 2012, which together have added 76.2 LMT per annum in the existing indigenous Urea production capacity of the country. In addition, Government of India also introduced the New Urea Policy (NUP)-2015 on 25 th  May, 2015 with one of the objectives of maximizing indigenous urea production. As a result, the indigenous production of the country increased from 225.08 LMT in 201415 to 284.95 LMT in 2022-23.

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