Lok Sabha Question No. 912 (UNSTARRED), answered on 2016-03-01
Subject: Production and Import of Fertilizer
Ministry: CHEMICALS AND FERTILIZERS
Asked by: PRATHAP SIMHA, SHOBHA KARANDLAJE, KULAMANI SAMAL, DUSHYANT SINGH

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

## LOK SABHA

UNSTARRED QUESTION NO. 912

TO BE ANSWERED ON : 01.03.2016

Production and Import of Fertilizer

912:

SHRI PRATHAP SIMHA: KUMARI SHOBHA KARANDLAJE: DR: KULAMANI SAMAL: SHRI DUSHYANT SINGH:

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

- (a) whether the fertilizers produced by the private as well as Government affiliated   companies in India is  insufficient  for  agricultural activities in the country, if so, the details thereof and the reasons therefor;
- (b) whether Government   importslproposes to  import fertilizers to supplement the demand of farmers in the country, if the details thereof, fertilizer-wise and country-wise; SO,
- (c) whether several fertilizer units in the country have been closed/facing closure during the last two years and if the details of such fertilizer units and the reasons therefor along with the initiative of the Government to revive the closed as well sick units in the country; SO,
- (d) whether the Government has drawnlproposed an action plan to boost the growth of fertilizer industry and enhance the production of fertilizers both quantitatively and qualitatively to make the country self-reliant in meeting the requirement of   fertilizers and in particular to meet the requirement of States/UTs for the year 2016, if the details thereof and the present status of fertilizer production in India; and SO,
- (e) whether the Government has been encouraging Indian companies to establish Joint Ventures for production of fertilizers in countries which are rich in fertilizer resources with back arrangement and to enter into long term agreement for supply of fertilizers and fertilizer inputs to India, if so, the details thereof? buy

## ANSWER

MINISTRY OF CHEMICALS & FERTILIZERS (SHRI HANSRAJ GANGARAM AHIR)

MINISTER OF STATE IN THE

- (a): Madam The indigenous production of fertilizers (Urea, DAP MOP & NPK) is less than the requirement of the country. Indian's dependency on import is about 25% of our requirement of Urea. In respect of Phosphatic & Potassic sector, the country's dependence on imports is about 90% and 100% respectively, either in the form of raw material or finished fertilizers. Yes,
- (b): Urea for direct agricultural use is imported on Government account through State Trade Enterprises (STEs) to the gap between assessed demand and indigenous production: Government is also importing approximately 20 Lakh Metric Tonnes urea from Oman India Fertiliser Company (OMIFCO) under a Long Term Urea Off Take Agreement (UOTA) between GOI & OMIFCO. Import of all other fertilizers is free. Importers import these fertilizers as per their commercial judgement: The year-wise and country wise detail of fertilizers imported during this current year i.e. from 01.04.2015 to 31.01.2016 is as under: bridge

## <Figures in Lakh MT>

- # MOP includes both for use as direct application as well as NPK manufacture
- (c): None of the unit of any of the Fertilizer PSUs has been closed/facing closure during the last two years.
- (d): Yes; Madam; The Government had notified New Investment Policy 2012 on January, 2013 and its amendment on 7th October 2014 to facilitate fresh investment in urea sector and to make India self-sufficient in the urea sector. 2nd

| Country_   | Urea   | DAP   | NPK   | MOP#   |
|------------|--------|-------|-------|--------|
| Belarus    |        |       |       | 1.23   |
| Canada     |        |       |       | 4.99   |
| CIS        |        |       |       | 2.51   |
| China      | 42.39  | 34.49 | 0.58  |        |
| Estonia    |        |       | 2.04  |        |
| Germany    |        |       |       | 0.71   |
| Iran       | 16.53  |       |       |        |
| Israel     |        |       |       | 4.00   |
| Jordan     |        | 0.81  |       | 3.39   |
| Kuwait     | 0.86   |       |       |        |
| Lithuania  | 0.63   |       |       | 4.58   |
| Oman       | 19.67  |       |       |        |
| Russia     |        | 3.04  | 3.67  | 7.71   |
| S.Arabia   |        | 14.86 |       |        |
| Ukraine    | 1.18   |       |       |        |
| USA        |        | 3.53  |       |        |
| Uzbekistan |        |       |       | 0.30   |
| Total      | 81.26  | 55.73 | 6.29  | 29.42  |

The Government has also notified the New Urea 2015 on 25th 2015 for existing gas based urea units with the  objectives of indigenous urea production; promoting energy efficiency in urea prodiucizorg and rationalizing subsidy burden on the Government Policy May ,

Apart from Government has taken for the revivalltestructuring of the closedisick PSUs. At present; all the units of FCIL (Fertilizer   Corporation of India Limited) and three units of HFCL (Hindustan Fertilizers  Corporation Limited) are lying closed As per CCEA decision dated 09.05.2013 two units of the FCIL Talcher are revived namely Ramagundam and on 'nomination basis' . Further; as decided by union Cabinet on 31.03.2015 Gorakhpur unit of FCIL and Barauni unit of HFCL to be revived on route' while are as per decision of the Cabinet dated 21.05.2015 the Sindri unit of the FCIL is to be revived on 'bidding route' up of fertilizer plants at all these locations is proposed. this, steps five being 'bidding Setting

The Government has also notified the New Urea 2015 on 25th 2015 for existing gas based urea units with the objectives of maximizing indigenous urea production; promoting energy efficiency in urea production; and rationalizing subsidy burden on the Government Policy May,

In addition to the above, it is informed that  the Union 21.05.2015 has approved for setting of Cabinet on a new-brownfield Ammonia-Urea Complex in the existing premises of the BVFCL at Namrup (Assam):.

Current Status of production in Public Sector and Private Sector in the current year upto January, 2016 is indicated below:

## <Figures in LMT>

| Year                                 | Public Sector   | Public Sector       | Private Sector   | Private Sector   | Private Sector      |
|--------------------------------------|-----------------|---------------------|------------------|------------------|---------------------|
| Year                                 | Urea            | Complex Fertilizers | Urea             | DAP              | Complex Fertilizers |
| 2015-16 (upto   January | 2016) | 58.87           | 10.56               | 88.17            | 16.39            | 40.55               |

(e): The Government has been encouraging Indian Joint Ventures abroad in Companies to establish countries which are rich in fertilizer resources for production facilities with back arrangements and to enter into agreement for supply of fertilizers and fertilize term inputs to India Further, the Department is also with the goal of access to acquisition fertilizer raw materials abroad. So far; the of the undertaken Joint Department of Fertilizers has Ventures abroad with 5 counties in the previous The details of such Joint Ventures in the fertilizer sector years. are indicated below: buy long working having

4 Joint Ventures under operation

| S No.   | JV Project- Country                                | JV participants with equity %                        | Product and the project status                                             |
|---------|----------------------------------------------------|------------------------------------------------------|----------------------------------------------------------------------------|
|         | Oman India Fertilizer Co. (OMIFCO) , Oman          | Oman Oil Co. (OOC 50%) , IFFCO (25%) & KRIBHCO (25%) | 16.52 lakh MT Urea & 2.48 lakh MT Ammonia, Production started in year 2006 |
| 2       | ICS Senegal, Senegal                               | ICS Senegal and IFFCO consortium                     | 5.5 Iakh MT phosphoric acid Production already started                     |
| 3       | JPMC IFFCO JV, Jordan                              | JPMC & IFFCO                                         | 4.8 lakh MT phosphoric acid ,                                              |
|         | IMACID Morocco                                     | Morocco Chambal   (25%) & TCL (25%) - India          | 4.25 MT phosphoric acid                                                    |
| 5       | Tunisia-India Fertilizer Company (TIFERT), Tunisia | GCT (Tunisia) , CFL & GSFC (India)                   | 3.60 lakh MT of phosphoric acid. Commercial production started             |