Import of fertilizers in the country

 

Import of fertilizers in the country

Posted On: 29 MAR 2022 2:50PM by PIB Delhi

It is informed that Government of India has mandated revival of Ramagundam, Gorakhpur, Sindri and Talcher units of Fertilizer Corporation of India (FCIL) and Barauni Unit of Hindustan Fertilizer Corporation Ltd (HFCL) through Joint Venture Company (JVC) of nominated CPSEs for setting up gas based ammonia-urea plants of 12.7 LMTPA capacity each. On operationalization of these plants would add 63.5 LMTPA urea production capacity in the country.

Government of India has also notified the New Urea Policy (NUP) – 2015 for existing 25 gas based urea units with the objective of maximizing indigenous urea production; promoting energy efficiency in urea production;  and rationalizing subsidy burden on the Government. The implementation of NUP-2015 has led to additional production from the existing gas based urea units due to which the actual production of urea has increased by 20-25 LMTPA in comparison to the actual production during 2014-15.

For Potassic & Phosphatic fertilizers, Govt. of India has taken following steps to reduce import:

1. Department of Fertilizers granted permission to Madhya Bharat Agro product Limited Unit-II, Banda Sagar, MP for production of 1.20 LMT per annum.
2. Paradeep Phosphates Ltd is expected to manufacture additional DAP/NPK complex to the tune of 8 LMT per annum utilizing the 2 trains of ZACL Goa Plant.
3. A new DAP/NPK Plant by RCF with annual capacity of 5 LMT and investment of 950 crore in Thal, commission in 2024.
4. A new DAP/NPK Plant by FACT with annual capacity of 5.5 LMT at a cost of Rs 537 cr. Commissioning in June, 2024.
5. On exploration of minerals for raw materials for DAP & other fertilizers in India, discussion is in place with Ministry of Mines, GSI, MECL & PDIL.
6. PDM or Potash Derived from Molasses (0-0-14.5-0) which is 100% indigenously manufactured has been included under Nutrient Based Subsidy (NBS) scheme.

The availability of fertilizers has remained comfortable across the country during the ongoing Rabi 2021-22 season. However, in between the season, some states highlighted shortfall of DAP fertilizer, particularly in few district. Accordingly, based on the requests of State Governments, DAP rakes were moved to meet the requirement.

The quantity and value of the urea imported by the country during each of the last five years is given in the table below:

 

Import of Ureafrom the year 2016-17 to 2020-21
Year	Qty in LMT	Value in Million US$
2016-17	54.81	1047.37
2017-18	59.75	1295.87
2018-19	74.81	2040.14
2019-20	91.23	2302.95
2020-21	98.28	2580.27

 

Further, it is informed that all P&K fertilizers are covered under Open General License (OGL) under the Nutrient Based Subsidy (NBS) Scheme. They are imported by the companies on commercially viable terms. The quantity of P&K (DAP, MOP and NPK) fertilizers imported by the country during each of the last five years is given in the table below:

Import of P&K fertilizers (DAP, MOP and NPK) from 2016-17 to 2020-21 Qty in LMT
Year	DAP	MOP	NPK
	As reported by the companies
2016-17	43.85	37.36	5.21
2017-18	42.17	47.36	4.99
2018-19	66.02	42.14	5.46
2019-20	48.70	36.70	7.46
2020-21	48.82	42.27	13.90

 

The information was given by the Minister of State for Chemicals and Fertilizers, Shri Bhagwanth Khuba in a written reply in the Rajya Sabha today.