Lok Sabha Question No. 1139 (UNSTARRED), answered on 2025-12-05
Subject: Enhancement of Domestic Fertilizer Production
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Jagdambika Pal

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1139 TO BE ANSWERED ON 05.12.2025

## Enhancement of Domestic Fertilizer Production

## 1139: Shri Jagdambika Pal:

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

- (a) the  specific  measures  undertaken  by  the  Government  to  enhance  domestic fertilizer production and reduce dependency on imports, particularly in the context of urea and DAP;
- (b) the  international  partnerships  or  bilateral  agreements  entered  into  by  the Government to secure reliable and cost-effective fertilizer imports and their role in stabilizing the domestic fertilizer supply chain;
- (c) whether the Government is aware of the fact that some fertilizer companies are bundling or tagging other agricultural products with urea or DAP sales and if so, the steps taken to regulate or prohibit such practices in the interest of farmers;
- (d) the  steps  being  taken  by  the  Government  to  reduce  excessive  reliance  on chemical fertilizers and to promote the adoption of sustainable practices under schemes like PM-PRANAM; and
- (e) the details of domestic fertilizer production, availability and distribution during the last three years in Uttar Pradesh, district-wise and year-wise?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (SMT. ANUPRIYA PATEL)

(a): 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) 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  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.

In addition, the Government also notified the New Urea Policy (NUP) - 2015 on 25 th May,  2015  for  the  existing  25  gas-based  Urea  units  with  one  of  the  objectives  of maximizing  indigenous  Urea  production  beyond  RAC.    The  NUP-2015  has  led  to additional  production  of  Urea  by  20-25  LMT  as compared  to  the  production  during 2014-15 annually.

Above steps together have facilitated increase of Urea production from level of 225 LMT per annum during 2014-15 to 306.67 LMT of Urea during 2024-25.

Further,  the  Government  has  implemented  Nutrient  Based  Subsidy  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 these fertilizers as per their business dynamics.

To boost 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.

(b): Government  of  India  generally  does  not  directly  enter  into  international partnerships  or  agreements  for  securing  fertilizer  supplies  from  foreign  countries. Instead,  the  Government  facilitates  Indian  fertilizer  companies  in  entering  into Agreements, Memoranda of Understanding (MoUs), and Joint Ventures (JVs) with foreign suppliers to ensure a reliable supply of fertilizers and raw materials to India.

The  Agreements,  MoUs,  and  Joint  Ventures  entered  into  by  Indian  fertilizer companies with foreign suppliers are as follows:

-  For Di-Ammonium Phosphate (DAP) and NPK fertilizers , Indian companies have established LTAs/MoUs with suppliers in Saudi Arabia, Russia, Morocco, and the UAE. For Muriate of Potash (MOP) ,  LTAs/MoUs are in place with suppliers from Jordan, Russia, Turkmenistan, Canada, Israel, and Belarus.
-  In addition, Indian companies have secured LTAs/MoUs for key raw materials used in fertilizer production. These agreements cover Rock Phosphate from Jordan,  Morocco,  Togo,  and  Mauritania, Phosphoric  Acid from  Morocco, Tunisia, and Senegal, and Ammonia from Saudi Arabia, Oman, Japan, and Malaysia.
-  Beyond these agreements, Indian fertilizer companies have also entered into joint ventures with foreign companies to ensure a long-term, consistent supply of  both  fertilizers  and  raw  materials.  For MOP ,  a  joint  venture  has  been established with Canada, while for Ammonia and Urea ,  joint  venture  is  in place with Oman. Additionally, for Phosphoric Acid and Rock Phosphate , joint  ventures  have  been  formed  with  companies  from  Jordan,  Senegal, Tunisia, Morocco, and South Africa.

(c): Fertilizers  are  declared  as  an  essential  commodity  under  the  Essential Commodities  Act,  1955  and  notified  under  Fertilizer  Control  Order,  1985.  State Governments  are  empowered  to  take  action  against  persons  involved  in  blackmarketing/overpricing,  as  per  provisions  of  EC  Act.  Any  complaints  received  at Department of Fertilizers level regarding black marketing/over-pricing of fertilizers is sent  to  concerned  State  Government  to  take  appropriate  action  under  Essential Commodities Act, 1955 and Fertilizer Control Order, 1985. The complaints received in  DoF  regarding  tagging/bundling  through  CPGRAMS  portal,  which  is  an  online platform  for  grievance  redressal. These  complaints  were  sent  to  concerned  state governments for necessary action as per FCO-1985.

Further,  tagging/bundling  of  other  products  with  fertilizers  is  not  encouraged  by Department  of  Fertilizers.  Accordingly,  suitable  directions  are  issued  to  fertilizer companies directing them not to indulge in such practices. Further, State

Governments are also advised  to take strict action as per extant  rules to prevent tagging.

In addition to this, Department of Agriculture and Farmers' Welfare regularly advise the State Government to prohibit forceful tagging of Nano-fertilizer/Bio-stimulant/Biofertilizers with conventional bags of fertilizer and immediately take strict legal action against defaulters.

(d): Organic farming is being promoted through Paramparagat Krishi Vikas Yojana (PKVY) in all the States/UTs except North Eastern States and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) for the North Eastern States  since  2015-16.  Both  schemes  stress  on  end-to-end  support  to  farmers engaged  in  organic  farming  i.e.  from  production  to  processing,  certification  and marketing. Primary focus of the schemes is to form organic clusters, with preference to  small  and  marginal  farmers,  to  create  a  supply  chain.  Both  the  schemes  are implemented  through  States  /UT  Governments.  Under  PKVY,  assistance  of  Rs. 31,500 per ha in 3 years is provided for promotion of organic farming. Out of this, assistance of Rs. 15,000 per ha is provided to farmers through Direct Benefit Transfer for  on-  farm  /off  -farm  organic  inputs.  Under  MOVCDNER,  assistance  of  Rs. 46,500/ha  in  3  years  is  provided  for  creation  of  Farmers  Producer  Organization, support to farmers for organic inputs etc. Out of this, assistance @ Rs. 32500/ ha is provided to farmers for off -farm /on -farm organic inputs under the scheme including Rs. 15,000 as Direct Benefit Transfer to the farmers.

Achievements of PKVY Scheme since its inception (as on 31.10.2025):

-  16.90 lakh hectares of land converted to organic farming.
-  28.35 lakh farmers benefited from the scheme.
-  Since 2015-16, a total of ₹2535.74 crore (central share) has been released under PKVY Scheme (as of 31.10.2025).

Achievements of MOVCDNER Scheme since its inception (as on 31.10.2025):

-  2.36 lakh hectares brought under organic farming.
-  2.70 lakh farmers benefited.
-  Since 2015-16, a total of ₹1480.48 crore (central share) has been released under MOVCDNER scheme (as of 31.10.2025).

Further ,  Natural  farming is  being  promoted  through  National  Mission  on  Natural Farming (NMNF).The National Mission on Natural Farming (NMNF) was approved by the Union Cabinet on 25.11.2024 to promote Natural Farming as a mass movement across the country. The Mission has been initiated to strengthen agriculture practices with scientifically backed agro ecological approaches towards sustainability, climate resilience and safe food. The Mission aims to reduce input cost of production to the farmers & dependence of farmers with the external markets, rejuvenate soil health & fertility, build resilience of the farm and farmers against climate risks, and provide

safe, healthy & nutritious food for the farmers, their families & the consumers. The overall financial outlay is ₹2481 crore (Central share of ₹1584 crore & States' share ₹897 crore) till 15th Finance Commission period (March 2026).

The  NMNF  is  targeted  to  be  implemented  in  15,000  clusters  to  initiate  Natural Farming in 7.5 Lakh Ha area and envisaged to make 1 crore farmers aware of Natural Farming. For easy availability of natural farming bio-inputs like Jeevamrit, Beejamrit, etc.,  10,000  need-based  Bio-input  Resource  Centres  envisaged  be  set  up  by practicing  natural  farming  farmers,  Primary  Agriculture  Credit  Society/  Farmer Producer Organisations, Self Help Groups, local rural entrepreneurs, Krishi Vigyan Kendras, etc. An output-based incentive of ₹4000/- per acre per year per farmer for 2 years envisaged to be provided to the farmers to practice natural farming, train more farmers, upkeep of livestock (preferably local breed of cow)/ preparation of natural farming inputs including purchase of mixing & storage containers, etc./ purchase of natural farming inputs from Bio-input Resource Centres.

## Achievements of NMNF Scheme:

-  ₹517.17 crores have been sanctioned/ released to 30 States/UTs & Central Agencies in F.Y. 2025-26 against a Budget allocation of ₹616.01 crores.

## Implementation Status of NMNF:

NMNF Scheme has been implemented in all States with 17,639 clusters have been formed covering an area of 6.35 lakh hectares. 32,220 Community Resource Persons (CRPs)  have  been  trained  through  Krishi  Vigyan  Kendras  (KVKs),  Agricultural Universities  (AUs),  and  Local  Natural  Farming  Institutions  (LNFIs)  to  provide continuous handholding support to farmers to practise Natural Farming. So far, 15.78 lakh farmers have been enrolled under the scheme. 3,517 BRCs have been set up to easily provide natural farming bio-inputs like Jeevamrit, Beejamrit, etc., More than 4,000 Scientists, Farmer Master Trainers (FMTs), and State & District officials have been trained under the Mission. Further, 806 training institutions, including 530 KVKs, 82 AUs, and 194 Local Natural Farming Institutions (LNFIs), have been identified to strengthen  capacity-building  activities.  Total  of  28.74  lakh  farmers  have  been sensitized on Natural Farming through various outreach initiatives.

Natural Farming Certification System (NFCS) has been initiated as 'PGS- INDIA NATURAL' for certification of all produces of natural farming in accordance with the Natural  Farming  Standards.  It  is  an  online  certification  system  and  implemented through National Centre for Organic and Natural Farming (NCONF). More than 5.0 lakhs farmers have been registered under the natural farming certification system till date with more than 60,000 farmers issued NF certificates. Certification will enable farmers to get premium price for natural products.

In addition to this, Kisan Sangoshthis are conducted by the fertilizer companies for extensive field interaction with farmers, local farmer cooperatives, panchayats etc.

25 Fertilizer Marketing Companies (FMCs) conducted 11,556 Camps/Kisan Sangoshthis across the Country during February 2025  to  November  2025. Camps/Kian Sangoshthis are being organised for promotion of FOM/LFOM/PROM under PM-PRANAM by the Fertilizer companies.

This initiative focuses on critical areas such as balanced use of fertilizers, integrated nutrient management  (INM), promotion of organic farming, and soil health improvement.  Awareness  activities  for  farmers  include  demonstrations  on  the application of FOM, LFOM, PROM, PDM, and City Compost across various crops. This camps also feature technical sessions on appropriate fertilizer dosages, cropspecific application techniques, and the benefits of organic inputs.

The program aims to enhance farmers understanding of INM, encourage adoption of balanced nutrient practices, and  strengthen outreach and  credibility through demonstration plots and interactive farmer engagement. The Government is regularly coordinating with State and Union Territory Governments to support and promote their efforts under this scheme.

Further,  Under  Market  Development  Assistance  (MDA)  Scheme,  assistance  @ Rs.1500/MT  is  being  provided  to  CBG  plants/Fertilizer  Marketing  Companies  for promotion of soil carbon enhancers, viz., Fermented Organic Manure (FOM)/Liquid Fermented  Organic  Manure  (LFOM)  and  organic  fertilizer,  viz.,  Phosphate  Rich Organic Manure (PROM) produced at plants under GOBARdhan initiative, 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.

Following measures are taken up for promotion of FOM/LFOM/PROM:

- i. 125 KVKs collaborating with nearby CBG plants to ensure farmers' access to information  about  FOM/LFOM  and  to  facilitate  the  availability  of  FOM  for awareness and demonstration activities.
- ii. D/o  Fertilizers  entrusted  HURL  and  RCF  to  attach  Agriculture  Extension Officers with CBG/BG Plants to facilitate them with promotion of FOM/LFOM/PROM and to resolve issues.
- iii. Conduct farmer trainings, demonstrations, and awareness programs on the benefits and application methods of organic fertilizers
- iv. Ensure availability and supply of organic & waste-derived fertilizers through marketing channels and dealer networks.
- v. Facilitate  capacity  building  by  providing  technical  guidance  to  farmers  for adopting sustainable nutrient practices

Above initiatives of the Government are expected to address the imbalanced use of chemical fertilizers thereby reducing chemical fertilizer use.

(e): Domestic Fertilizer production in Uttar Pradesh for the last three years in Uttar Pradesh is given as under:

(In LMT)

| Name of the Company    | Year    | Year    | Year    |
|------------------------|---------|---------|---------|
| Name of the Company    | 2022-23 | 2023-24 | 2024-25 |
| IFFCO-Phulpur          | 6.51    | 7.05    | 7.64    |
| IFFCO-Phulpur Expn.    | 12.24   | 12.00   | 10.71   |
| IFFCO-Aonla            | 11.52   | 12.26   | 11.35   |
| IFFCO-Aonla Expn.      | 11.92   | 11.36   | 12.44   |
| KFCL-Kanpur            | 6.28    | 6.85    | 6.12    |
| Indorama- Jagdishpur   | 11.17   | 11.38   | 12.18   |
| Yara-Babrala           | 11.82   | 12.31   | 13.23   |
| KFL/KSFL- Shahjahanpur | 10.95   | 10.66   | 11.35   |
| HURL: Gorakhpur        | 8.66    | 13.50   | 12.01   |
| Total                  | 91.07   | 97.37   | 97.03   |

The information regarding the requirement, availability and sales of fertilizers, viz. Urea, DAP, MOP and NPKS, in the State of Uttar Pradesh during the period from 2022-23 to 2025-26 (till November, 2025), year-wise, is placed at Annexure .

However, the distribution of fertilizers within the State at district/block/village level is done by the concerned State Government.

*****

Annexure referred to in reply to part ( e) of Lok Sabha Unstarred Question No. 1139 for answer on 05.12.2025.

| UTTAR PRADESH                                                                    | UTTAR PRADESH                                                                    | UTTAR PRADESH                                                                    | UTTAR PRADESH                                                                    | UTTAR PRADESH                                                                    | UTTAR PRADESH                                                                    | UTTAR PRADESH                                                                    | UTTAR PRADESH                                                                    | UTTAR PRADESH                                                                    | UTTAR PRADESH                                                                    | UTTAR PRADESH                                                                    | UTTAR PRADESH                                                                    | UTTAR PRADESH                                                                    | UTTAR PRADESH                                                                    |
|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
| REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) | REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) | REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) | REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) | REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) | REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) | REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) | REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) | REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) | REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) | REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) | REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) | REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) | REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) |
|                                                                                  |                                                                                  | UREA                                                                             | UREA                                                                             | UREA                                                                             | DAP                                                                              | DAP                                                                              | DAP                                                                              | MOP                                                                              | MOP                                                                              | MOP                                                                              | Fig. in LMT                                                                      | Fig. in LMT                                                                      | Fig. in LMT                                                                      |
| S.No                                                                             | YEAR                                                                             | Requirement                                                                      | Availability                                                                     | DBT Sales                                                                        | Requirement                                                                      | Availability                                                                     | DBT Sales                                                                        | Requirement                                                                      | Availability                                                                     | DBT Sales                                                                        | Requirement                                                                      | Availability                                                                     | DBT Sales                                                                        |
| 1                                                                                | 2025-26 RABI (TILL                                                               | 13.00                                                                            | 21.32                                                                            | 9.36                                                                             | 10.75                                                                            | 12.17                                                                            | 8.38                                                                             | 0.76                                                                             | 1.63                                                                             | 0.86                                                                             | 5.50                                                                             | 8.66                                                                             | 4.72                                                                             |
| 2                                                                                | KHARIF                                                                           | 39.92                                                                            | 48.93                                                                            | 40.24                                                                            | 10.00                                                                            | 12.45                                                                            | 7.70                                                                             | 1.25                                                                             | 1.64                                                                             | 0.65                                                                             | 5.00                                                                             | 8.36                                                                             | 3.64                                                                             |
| 3                                                                                | 2024-25 77.00                                                                    | 2024-25 77.00                                                                    | 91.72                                                                            | 79.18                                                                            | 24.05                                                                            | 21.55                                                                            | 19.51                                                                            | 1.72                                                                             | 2.50                                                                             | 1.76                                                                             | 14.50                                                                            | 12.85                                                                            | 10.50                                                                            |
| 4                                                                                | 2023-24                                                                          | 2023-24                                                                          | 76.15                                                                            | 91.83 74.53                                                                      | 24.50                                                                            | 25.76                                                                            | 21.61                                                                            | 2.35                                                                             | 1.62                                                                             | 1.21                                                                             | 9.50                                                                             | 10.13                                                                            | 7.93                                                                             |
| 5                                                                                | 2022-23                                                                          | 2022-23                                                                          | 77.50                                                                            | 87.39                                                                            | 74.72                                                                            | 24.70                                                                            | 27.69 22.38                                                                      | 3.36                                                                             | 1.42                                                                             | 1.22                                                                             | 7.00                                                                             | 6.64                                                                             | 4.79                                                                             |