Lok Sabha Question No. 353 (UNSTARRED), answered on 2016-07-19
Subject: Demand and Supply of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: RAHUL RAMESH SHEWALE, SANJAY SHAMRAO DHOTRE, BHARTRUHARI MAHTAB, KRUPAL BALAJI TUMANE, BHAVANA GAWALI (PATIL), ARVIND GANPAT SAWANT, JANARDAN SINGH SIGRIWAL

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

## LOK SABHA

UNSTARRED QUESTION NO. 353 TO BE ANSWERED ON: 19.07.2016

## Demand and Supply of Fertilizers

353:

SHRI  RAHUL SHEWALE:

SHRI SANJAY DHOTRE:

SHRI BHARTRUHARI MAHTAB:

SHRI KRUPAL BALAJI TAMANE:

SHRIMATI  BHAVANA PUNDALIKARAO GAWALI PATIL:

SHRI ARVIND SAWANT:

SHRI JANARDAN SINGH SIGRIWAL:

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

- (a) whether the gap between demand and supply of fertilizers has widened during each of the last three years and the current year despite various measures taken by the Government to ensure adequate supply of fertilizers across the country, if so, the details thereof and the reasons therefor, State/UT-wise;
- (b) whether the import of fertilizers has also increased to bridge this  gap in the country during the said period and if so, the details thereof, country-wise;
- (c) whether the Government has chalked out any plan to enhance the capacity of fertilizer manufacturing in the country to meet the increasing demand, if so, the details thereof along with the capacity of fertilizer manufacturing enhanced during the said period, State/UTwise and if not, the reasons   therefor;
- (d) the other steps taken by the Government to bridge the gap between demand and supply of fertilizers and ensure supply of adequate fertilizers to farmers as well as reduce their imports in the country;
- (e) the steps taken to safeguard the interest of domestic fertilizer industry from the impact of Di-ammonium Phosphate (DAP) Manufacturers'  Association; and
- (f) whether the Government proposes to provide any package to DAP dealers in order to safeguard them from the impact of excess cost of DAP and if so,  the details thereof?

## ANSWER

MINISTER OF STATE IN THE   MINISTRY OF CHEMICALS AND FERTILIZERS, SHIPPING, ROAD TRANSPORT & HIGHWAYS

(SHRI MANSUKH  L. MANDAVIYA)

(a):    No Madam, the gap between demand and supply of fertilizers has not widened during last three years.

(b):        To  meet  the  gap  between  domestic  demand  and  domestic  production  fertilizers  are imported.  The details of import country-wise during the last three years and current year are given below:

## <Figures in LMT>

| Urea         | Urea    | Urea    | Urea    | Urea                         |
|--------------|---------|---------|---------|------------------------------|
| Country Name | 2013-14 | 2014-15 | 2015-16 | 2016-17(April to June, 2016) |
| Bahrain      | 0       | 0       | 0       | 0.39                         |
| China        | 29.47   | 66.34   | 42.39   | 1.97                         |
| Indonesia    | 1.11    | 0       | 0       | 0                            |
| Iran         | 16.49   | 6.52    | 16.53   | 4.16                         |
| Kuwait       | 0       | 0       | 0.86    | 1.47                         |
| Lithuania    | 0       | 0       | 0.63    | 0                            |
| Oman         | 23.31   | 14.63   | 23.15   | 6.87                         |
| Russia       | 0.5     | 0       | 0       | 0                            |
| UAE          | 0       | 0       | 0       | 0.52                         |
| Ukraine      | 0       | 0       | 1.18    | 0.63                         |
| Grand Total: | 70.88   | 87.49   | 84.74   | 16.01                        |

## <Figures in LMT>

| DAP          | DAP     | DAP     | DAP     | DAP                          |
|--------------|---------|---------|---------|------------------------------|
| Country Name | 2013-14 | 2014-15 | 2015-16 | 2016-17(April to June, 2016) |
| Australia    | 0       | 0       | 0       | 0.39                         |
| China        | 17.17   | 19.06   | 34.84   | 7.72                         |
| Jordan       | 1.3     | 3.02    | 0.81    | 0.8                          |
| Morocco      | 0       | 0       | 0       | 1.1                          |
| Russia       | 0       | 0       | 3.04    | 0.5                          |
| Saudi-Arabia | 7.06    | 11.86   | 14.48   | 4.18                         |
| USA          | 7.08    | 4.59    | 6.91    | 0.89                         |
| Grand Total: | 32.61   | 38.53   | 60.08   | 15.58                        |

## <Figures in LMT>

| MOP          | MOP     | MOP     | MOP     | MOP                          |
|--------------|---------|---------|---------|------------------------------|
| Country Name | 2013-14 | 2014-15 | 2015-16 | 2016-17(April to June, 2016) |
| Canada       | 7.35    | 7.91    | 4.99    | 0.88                         |
| CIS          | 0.33    | 0       | 2.51    | 0                            |
| CIS+Belarus  | 2.35    | 2.87    | 1.76    | 1.04                         |
| Germany      | 2.11    | 1.2     | 1.06    | 0.18                         |
| Israel       | 6.35    | 6.17    | 4       | 1.81                         |
| Jordan       | 3.3     | 5.53    | 3.78    | 0.86                         |
| Lativa       | 1.08    | 0       | 0       | 0                            |
| Lithuania    | 0.31    | 4.69    | 4.91    | 0.4                          |
| Russia       | 7.72    | 13.6    | 9.12    | 0.33                         |
| Saudi-Arabia | 0.66    | 0       | 0       | 0                            |
| Spain        | 0.24    | 0       | 0       | 0                            |
| Uzbekistan   | 0       | 0       | 0.3     | 0                            |
| Grand Total: | 31.8    | 41.97   | 32.43   | 5.5                          |

| NPKs         | NPKs    | NPKs    | NPKs    | NPKs                         |
|--------------|---------|---------|---------|------------------------------|
| Country Name | 2013-14 | 2014-15 | 2015-16 | 2016-17(April to June, 2016) |
| China        | 0.94    | 1.12    | 0.58    | 0                            |
| Estonia      | 1.1     | 0.72    | 2.04    | 0.21                         |
| Indonesia    | 1.58    | 0.33    | 0       | 0                            |
| Russia       | 0       | 0.74    | 3.67    | 2.15                         |
| Grand Total: | 3.62    | 2.91    | 6.29    | 2.36                         |

(c) &(d):    In order to reduce the import dependence gradually,Department has initiated various steps to enhance the domestic production & facilitate fresh investment in urea sector to make India self-sufficient.

Department  of  Fertilizers  had  announced  New  Investment  Policy(NIP)  -2012  on  02 nd January, 2013 and its amendment thereof on 07 th October,2014 to facilitate fresh investment in Urea sector.  At present, there are six proposals in the Department of Fertilizers for setting up of Greenfield/Brownfield project.

The Government has announced New Urea Policy -2015 on 25 th May, 2015 for existing 25  gas  based  urea  units  with  the  objectives  of  maximizing  indigenous  urea  production; promoting  energy  efficiency  in  the  urea  units;  and  to  reduce  the  subsidy  burden  on  the Government.  Similarly,  steps  have  been  taken  for  revival  of  closed  plantsof  FCIL  and  HFCL namely Gorakhpur, Barauni, Sindri, Talcher and Ramagundam.  Due to the above mentioned measures in year 2015-16, highest ever urea production of 244.75 LMT was achieved, about 18.90 LMT more than the production of urea in year 2014-15.

(e)  &  (f):  The  Government  is  implementing  Nutrient  Based  Subsidy  (NBS)  Scheme  w.e.f. 01.04.2010.  Under the said, scheme, a fixed amount of subsidy is provided on each grade of subsidized Phosphatic & Potassic (P&K) fertilizers depending upon its Nutrient content.  The P&K fertilizers are decontrolled and the Maximum Retail Price (MRP) is fixed by the fertilizers companies  as  per  market  dynamics.    The  Government  does  not  interfere  in  manufacturing decision of the fertilizer companies.

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