Lok Sabha Question No. 2093 (UNSTARRED), answered on 2023-12-15
Subject: Shortage in Production of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Ashok Mahadeorao Nete

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

UNSTARRED QUESTION NO. 2093 TO BE ANSWERED ON :15.12.2023

## Shortage in Production of Fertilizers

## 2093:   SHRI ASHOK MAHADEORAO NETE:

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

- (a) whether the production of fertilizers in the country has not been enough to meet the demand of the same;
- (b) if so, the details thereof; and
- (c) the  measures  taken/proposed  to  be  taken  by  the  Government  to  meet  the requirement of fertilizers indigenously?

## ANSWER

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

(a)  to  (c):    Fertilizers  are  made  available  to  the  farmers,  majorly  through  indigenous production.  However, the gap between demand-supply is met through imports in the country. The details of the total all fertilizers production and total all fertilizers demand in the country during 2019-20 to 2022-23 are as under:

| Total All Fertilizers Production, Total All Fertilizers Demand during 2019-20 to 2022-23 (Figures in 'LMT')   | Total All Fertilizers Production, Total All Fertilizers Demand during 2019-20 to 2022-23 (Figures in 'LMT')   | Total All Fertilizers Production, Total All Fertilizers Demand during 2019-20 to 2022-23 (Figures in 'LMT')   |
|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
| Year                                                                                                          | Total All Fertilizers Production                                                                              | Total All Fertilizers Demand                                                                                  |
| 2019-20                                                                                                       | 425.95                                                                                                        | 581.50                                                                                                        |
| 2020-21                                                                                                       | 433.68                                                                                                        | 601.91                                                                                                        |
| 2021-22                                                                                                       | 435.95                                                                                                        | 640.27                                                                                                        |
| 2022-23                                                                                                       | 485.29                                                                                                        | 628.26                                                                                                        |

The availability of fertilizers has remained comfortable across the country during the  ongoing  Rabi  2023-24  season.  However,  following  steps  are  taken  by  the Government every season to meet the adequate and timely requirement of fertilizers in the country:

- i. Before the commencement of each cropping season, Department of Agriculture and  Farmers  Welfare  (DA&FW),  in  consultation  with  all  the  State  Governments, assesses the state-wise & month-wise requirement of fertilizers.

ii. On  the  basis  of  requirement  projected,  Department  of  Fertilizers  allocates sufficient/ adequate quantities of fertilizers to States by issuing monthly supply plan and continuously monitors the availability.

iii. The  movement  of  all  major  subsidized  fertilizers  is  monitored  throughout  the country by an  on-line web  based  monitoring  system  called  integrated  Fertilizer Monitoring System (iFMS);

iv. Regular Weekly Video Conference is conducted jointly by DA&FW and DoF with State  Agriculture  Officials  and  corrective  actions  are  taken  to  dispatch  fertilizers  as indicated by the State Governments.

v. The  gap  between  demand  (requirement)  and  production  of  fertilizers  is  met through imports. The import for the season is also finalized well in advance to ensure timely availability.

Further, under Urea Subsidy Scheme (USS), Urea is provided to the farmers at a statutorily notified Maximum Retail Price (MRP). Besides, under Nutrient Based Subsidy Policy, a fix amount of subsidy is notified on annual/semi-annual basis, which ensures availability  of  P&K  fertilizers  at  reasonable  prices  to  farmers.  Accordingly,  all  farmers are supplied fertilizers at the subsidized rates.

Government  of India ensures adequate availability of urea to meet the requirements  of  states/UTs.  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. The NUP-2015 has led to additional production of urea by 20-25 LMTPA as compared to the production during 2014-15.

Further,  P&K  fertilizers  are  covered  under  Open  General  License  (OGL)  and companies are free to import/produce these fertilizers as per market 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  boost  manufacturing  and  make country self-reliant in fertilizer production.

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