Lok Sabha Question No. 978 (UNSTARRED), answered on 2025-12-05
Subject: Self-Reliance in Fertilizer Sector
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Dr. Sambit Patra

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

## LOK SABHA

UNSTARRED QUESTION NO. 978 TO BE ANSWERED ON: 05.12.2025

## SELF-RELIANCE IN FERTILIZER SECTOR

## 978:  DR. SAMBIT PATRA:

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

- (a) whether there is a steady increase in the demand for urea, DAP and NPKS fertilizersin the country during the last three years and if so, the details thereof;
- (b) whether the Government has also imported urea, DAP and NPKS fertilizers to ensure their availability during the last three years and if so, the details thereof; and
- (c) whether the Government has made any long-term plan to achieve the goal of self-reliance the fertilizer sector and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

(SMT. ANUPRIYA PATEL)

- (a) Before the commencement of each cropping season, Department of Agriculture and Farmers Welfare (DA&FW) assesses the State-wise & month-wise requirement of fertilizers viz. Urea, DAP and  NPKS.    The  requirement  is  assessed  taking  into  account  the  projected  gross  cropped  area, irrigated  area,  last  three  seasons'  consumption  pattern  and  crop  wise  recommended  dose  of fertilizers as per soil health fertility status etc. To fulfil this requirement of fertilizers in the States as per assessment done by DA&FW, D/o Fertilizers allocates adequate quantities of fertilizers to States by issuing monthly supply plans.

The information regarding requirement/demand of these fertilizers across the Statesin last 3 years i.e. in 2022-23, 2023-24 &2024-25 is as under:

| Fig. InLMT   | Fig. InLMT   | Fig. InLMT    | Fig. InLMT   |
|--------------|--------------|---------------|--------------|
| PRODUCT      | 2022-23      | 2023-24       | 2024-25      |
| 359.00       | 356.00       | 364.01        | UREA         |
| 114.00       | 110.00       | 111.92        | DAP          |
| 121.00       |              | 126.00 151.29 | NPKS         |

(b) The information regarding the imports of Urea, DAP and NPK for the last 3 years is as follows:

| Fig. InLMT   | Fig. InLMT   | Fig. InLMT               | Fig. InLMT               |
|--------------|--------------|--------------------------|--------------------------|
| Year         | Urea         | DAP                      | NPK                      |
|              |              | As reported by companies | As reported by companies |
| 2022-23      | 75.80        | 65.83                    | 27.52                    |
| 2023-24      | 70.42        | 55.67                    | 22.17                    |
| 2024-25      | 56.47        | 45.69                    | 22.72                    |

(c) 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) at Gorakhpur in Uttar Pradesh, Sindri in Jharkhand and Barauni in Bihar, respectively. The units set up by private companies are PanagarhUrea unit of Matix Fertilizers and Chemicals Ltd. (Matix) in West Bengal; and Gadepan- Ill 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. Recently, the Union Cabinet has approved the proposal for setting up of a new Brownfield Ammonia-Urea Complex of 12.7 Lakh Metric Tonnes (LMT) annual capacity of Urea production within the existing premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup, Assam.

Moreover,  the  Government  has  also  implemented  Nutrient  Based  Subsidy  (NBS)  Policy  w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under NBS policy, P&K fertilizers are covered under Open General License (OGL) and companies are free to import/manufacture these fertilizers as per their business dynamics.

To boost domestic fertilizer production and make country self-reliant the following measures have been taken by the Government:

(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.

(ii) The number of P&K fertilizers covered under NBS policy has increased from 22 grades in 2021 to 28 grades.

(iii) Freight Subsidy on SSP, which is an indigenously manufactured fertilizer, has been approved since Kharif, 2022 to promote SSP usage for providing Phosphatic or 'P' nutrient to the soil.