Lok Sabha Question No. 1082 (UNSTARRED), answered on 2023-12-08
Subject: Self-Reliance in Fertilizer Production
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Santosh Kumar

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

## LOK SABHA

UNSTARRED QUESTION NO. 1082 TO BE ANSWERED ON: 08.12.2023

## Self-Reliance in Fertilizer Production

## +1082:     SHRI SANTOSH KUMAR:

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

- (a) the  details  of  fertilizers  in  which  the  country  has  achieved  self-sufficiency  with regard to production;
- (b) the quantity and name of fertilizers imported during the last three years and the foreign exchange spent on them, year-wise;
- (c) whether the Government has introduced any scheme to make the country selfreliant in future with regard to the fertilizers which the country presently imports; and
- (d) if so, the details thereof and the estimated costs/expenditure in this regard?

## ANSWER MINISTER OF STATE FOR CHEMICALS & FERTILIZERS

## (SHRI BHAGWANTH KHUBA)

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- (a): Indigenous production of urea and P&K fertilizers except Single Super Phosphate (SSP)  doesn't  commensurate  to  the  requirement  in  the  country.  The  gap  between  the requirement  and  production  is  fulfilled  by  imports.  Indigenous  production  of  Urea  has increased from 225.85Lakh Metric Tonne in 2014-15 to 284.94 Lakh Metric Tonne in the year 2022-23.
- (b): Urea is imported on government account. However,all P&K fertilizers (DAP, MOP and  NPK)  are  covered  under  Open  General  License  (OGL)  under  the  Nutrient  Based Subsidy (NBS) Scheme  and they are imported by the fertilizer companies on commercially viable terms. Therefore, value of these grade of fertilizers is not available.The  details  ofquantity  and  name  of  fertilizers  imported  during  the  last  three years and the foreign exchange incurred on Urea is given below:

| Import of fertilizers (Urea, DAP, MOP and NPK) from 2019-20 to 2021-22   | Import of fertilizers (Urea, DAP, MOP and NPK) from 2019-20 to 2021-22   | Import of fertilizers (Urea, DAP, MOP and NPK) from 2019-20 to 2021-22   | Import of fertilizers (Urea, DAP, MOP and NPK) from 2019-20 to 2021-22   | Import of fertilizers (Urea, DAP, MOP and NPK) from 2019-20 to 2021-22   | Import of fertilizers (Urea, DAP, MOP and NPK) from 2019-20 to 2021-22   |
|--------------------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                                                          |                                                                          | Qty in LMT                                                               | Qty in LMT                                                               | Qty in LMT                                                               | Foreign exchange incurred on urea (in Million US$)                       |
| Year                                                                     | Urea                                                                     | DAP*                                                                     | MOP*                                                                     | NPK*                                                                     | Foreign exchange incurred on urea (in Million US$)                       |
| 2020-21                                                                  | 98.28                                                                    | 48.82                                                                    | 42.27                                                                    | 13.9                                                                     | 2580.27                                                                  |
| 2021-22                                                                  | 91.36                                                                    | 54.62                                                                    | 24.6                                                                     | 11.7                                                                     | 6041.06                                                                  |
| 2022-23                                                                  | 75.8                                                                     | 65.83                                                                    | 18.66                                                                    | 27.5                                                                     | 4751.29                                                                  |

(c) & (d):   With regard to Urea, the Government had announced New Investment Policy (NIP) - 2012 on 2nd January, 2013 and its amendment on 7th 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 areRamagundam urea unit of Ramagundam Fertilizers and Chemicals Ltd (RFCL) and 3 urea units namely Gorakhpur, Sindri and Barauni of Hindustan Urvarak& Rasayan Limited (HURL). The units set up by private companies are Panagarh urea unit of Matix Fertilizers and Chemicals Ltd. (Matix); Gadepan-III urea unit of Chambal Fertilizers and Chemicals Ltd. (CFCL). Each of these units has installed capacity of 12.7 Lakh Metric Tonne per annum (LMTPA). Therefore, these  units  have  together  added  urea  production  of  76.2  LMTPA  thereby  total  urea production  capacity  has  increased  283.74  LMTPA.  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.

With  regard  to  P&K  fertilizers,  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 - based on import prices of fertilizers and other relevant factors like requirement of nutrients in the country, balanced  use  of  fertilizers,  subsidy  and  MRP  etc  -  is  provided  on  P&K  fertilizers depending  on  their  nutrient  content.  Further,  P&K  fertilizers  are  covered  under  Open General License (OGL) and companies are free to import/produce there fertilizers as per their  business  dynamics.  Based  on  examination  of  requests  received,  permission  is granted  to  the  fertilizer  companies  for  increasing  their  manufacturing  capacity  and  for induction  of  new  P&K  companies  &  their  fertilizer  products  under  NBS,  with  a  view  to make country self-reliant in fertilizer production.

Further to promote  Potash derived  from  Molasses  (PDM)  which  is  100% indigenously  manufactured  fertilizer  has  been  notified  under  Nutrient  based  subsidy (NBS)  regime  w.e.f  13.10.2021.  Freight  Subsidy  on  SSP,  which  is  an  indigenously manufactured fertilizer, has been made applicable for Kharif and Rabi 2023-24 to help in promotion of SSP usage for providing Phosphatic or 'P' nutrient to the soil.

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