Lok Sabha Question No. 747 (UNSTARRED), answered on 2025-02-07
Subject: Subsidy to Domestic Fertilizer Manufacturers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Navaskani K, Shri Selvam G, Shri C N Annadurai

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

UNSTARRED QUESTION NO. 747 TO BE ANSWERED ON: 07.02.2025

## Subsidy to Domestic Fertilizer Manufacturers

747:

SHRI C N ANNADURAI:

SHRI SELVAM G:

SHRI NAVASKANI K:

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

- (a) the details of subsidies provided to domestic fertilizer manufacturers during the last three years and their impact on domestic production and supply;
- (b) whether the Government plans to revise the subsidy framework to encourage higher production;
- (c) whether the Government is promoting the production of alternative fertilizers like  nano-fertilizers, bio-fertilizers and organic fertilizers, if so, the details of such initiatives and their success;
- (d) the percentage  of  total fertilizer  demand  currently  being  met  through alternative fertilizers;
- (e) whether the Government is promoting the adoption of advanced technologies in the fertilizer manufacturing sector, if so, the initiatives taken therefor; and
- (f) the  role  of  research  and  development  in  enhancing  domestic  fertilizer production?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (SMT. ANUPRIYA PATEL)

(a)  &  (b): The  entire  subsidy  scheme  is  focused  towards  timely  availability  of fertilizers  at  affordable  prices  to  farmers.  The  details  of  subsidies  provided  to domestic  fertilizer  manufacturers/Importers  during  the  last  three  years  are  as follows:

| Year    |   Amount (in Crores) |
|---------|----------------------|
| 2021-22 |               157640 |
| 2022-23 |               254799 |
| 2023-24 |               195421 |

The  domestic  production  in  the  last  3  years  from  2021-22  to  2023-24  and current  year  till  date  is  435.95  MT,  485.29  MT,  503.35  MT,  and  391.60  MT respectively and the supply has remained comfortable.

(c) & (d): The Government of India has officially notified the specifications for Nano Nitrogen under the Fertilizer Control Order (FCO), 1985. Nano Urea products from IFFCO (4% and 16%  Nitrogen), Zuari Farm Hub Limited (8% Nitrogen), Coromandel  International  Limited  (12%  Nitrogen),  and  Ray  Nano  &  Research Centre (4.4% Nitrogen) have received approval from the Department of Agriculture & Farmers Welfare (DA&FW).

The  Government  has  also  notified  Nano  DAP  under  the  Fertilizer  Control Order (FCO), 1985, based on bio-efficacy trials and toxicology tests. M/s Coromandel International Limited (CIL), M/s Zuari Farm Hub Limited, M/s Rashtriya Chemicals  and  Fertilizers  Limited  and  M/s  Indian  Farmers  Fertiliser  Cooperative Limited  (IFFCO)  have  been  granted  permission  to  manufacture  Nano  DAP. Department of Fertilizers is encouraging Fertilizer Companies to set up Nano Urea and Nano DAP plants with a view to increase the production of Nano Urea in the country.Although the Department of Fertilizers is not directly involved in setting up of  Nano  Fertilizer  Plants,  it  is  encouraging  fertilizer  companies  for  setting  up  of Nano Fertilizer Plants across the nation.

The  Government  has  approved  the  Market  Development  Assistance  (MDA) @Rs. 1500/MT to promote organic fertilizers, i.e. manure produced at plants under GOBARdhan initiative covering different Biogas/CBG support schemes/programmes of stakeholder Ministries/Departments such as Sustainable Alternative  Towards  Affordable  Transportation  (SATAT)  scheme  of  Ministry  of Petroleum and Natural Gas (MoPNG), 'Waste to Energy' programme of Ministry of New & Renewable Energy (MNRE), Swachh Bharat Mission (Rural) of Department of Drinking Water & Sanitation (DDWS), etc. with total outlay of Rs. 1451.84 crore (FY 2023-24 to 2025-26), which includes a corpus of Rs. 360 crore for research gap funding, etc.

The sale of Fermented Organic Manures (FOM) during the last and current year till date 56058.621 MT and 227991.462 MT respectively.

Government  is  promoting  organic  farming  using  bio-fertilizers  and  organic fertilizers through the schemes of Paramparagat Krishi Vikas Yojana (PKVY) in all the States/UTs and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER). Both the schemes focus on end-to-end support to farmers engaged  in  organic  farming  i.e.  from  production  to  processing,  certification  and marketing  and  post-harvest  management.  Training  and  capacity  building  are integral  part  of  the  scheme.Under  the  PKVY  and  MOVCDNER schemes, farmers are provided financial assistance of Rs.15000/ha for 3 years through Direct Benefit Transfer(DBT)  for  on-farm  and  off-farm  organic  inputs  including  organic  manure and biofertilizer.

(e)  &  (f): With  regard  to  Urea,  the  Government  had  announced  New  Investment Policy (NIP) - 2012 on 2nd January, 2013 and its amendment on 7thOctober, 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 of 76.2 LMTPA thereby total production urea production capacity has increased from 207.54 LMTPA during 2014-15 to 283.74 LMTPA at present. In addition, the Government also notified the New Urea Policy (NUP) - 2015 on 25th May, 2015 for the existing 25 gas-based urea units 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. These 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.

The P&K sector is a decontrolled and under the NBS scheme the companies are free to take initiatives to produce/import fertilizers as per market dynamics.

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