Self–sufficiency in fertilizer production

Self–sufficiency in fertilizer production

The month-wise demand /requirement of fertilizers is assessed and projected by the Department of Agriculture & Cooperation (DAC) in consultation with the State Governments before commencement of each cropping season.  On the basis of month-wise & state-wise projection given by DAC, Department of Fertilizers allocates sufficient/adequate quantities of fertilizers to States by issuing monthly supply plan and continuously monitors the availability. The gap in the demand and domestic production of fertilizers is met through imports.

The Government has notified the New Investment Policy (NIP) 2012 and amendment to NIP-2012 on 2^nd January 2013 and 7^th October 2014 respectively to facilitate fresh investment in urea sector to boost the indigenous production of Urea and to reduce import dependency.

All the P&K fertilizers are under the OGL. The gap between requirement and indigenous production of fertilizers is met thought imports. India’s dependency on import at present is to the extent of 25% of our requirement of Urea, 90% in case of Phosphates and 100% in case of Potash. As we are dependent on import of either finished fertilizer or its raw material to a great extent, it is not possible to achieve self-sufficiency in fertilizer sector at present. However, the Government has been encouraging Indian Companies to establish Joint Ventures abroad in Countries which are rich in fertilizer resources for production facilities with buy back arrangement and to enter into long term agreement for supply of fertilizers and fertilizer inputs to India. Further, the Department is also working with the goal of having access to acquisition of the fertilizer raw materials aboard to ensure assured supply of raw materials and fertilizers inputs to augment indigenous production and reduce import dependency.

            The production/Imports of major fertilizers in the country for the last one decade is given in the table below:-

PRODUCTION AND IMPORT OF UREA, DAP & COMPLEX FERTILIZERS FROM 2005-06 TO 2014-15
								(Figure In Lakh MT)
YEAR	UREA			DAP			COMPLEX FERTILIZERS			TOTAL
	Prod.		Import	Prod.		Import	Prod.		Import	Prod.	Import
2005-2006	200.98		20.57	46.28		24.36	67.63		0.00	314.89	44.93
2006-2007	203.09		47.18	48.52		28.41	74.64		0.00	326.25	75.59
2007-2008	198.58		69.29	42.12		27.22	58.50		0.00	299.20	96.51
2008-2009	199.22		56.67	29.93		61.91	68.48		0.00	297.63	118.58
2009-2010	211.12		52.09	42.47		57.60	80.38		0.00	333.97	109.69
2010-2011	218.80		66.09	35.37		74.09	87.27		9.80	341.44	149.98
2011-2012	219.84		77.92	39.63		68.97	77.70		36.44	337.17	183.33
2012-2013	225.75		78.66	36.47		56.41	61.80		4.01	324.02	139.08
2013-2014	227.15		70.87	36.11		32.61	69.13		3.62	332.39	107.10
2014-2015	225.85		87.49	34.44		38.17	78.32		2.91	338.61	128.57

            This information was given by Shri Hansraj Gangaram Ahir, Minister of State of the Ministry of Chemicals and Fertilizers in the Rajya Sabha today.