Amendment in import policy condition of Urea Exim Code 31021010 in the ITC HS 2022 Schedule I Import Policy

## Policy Analysis Report: Amendment to Import Policy Condition of Urea **1. Executive Summary:** This report analyzes a notification amending the import policy condition for Urea (Exim Code 31021010) under the ITC HS 2022, Schedule I, Import Policy. The core purpose of this amendment is to extend the State Trading Enterprise (STE) status of Indian Potash Limited (IPL) for the import of Urea on Government account. The key finding is that IPL is now authorized to import Urea on Government account until March 31, 2026, subject to existing regulations outlined in the Foreign Trade Policy (FTP) 2023. **2. Introduction:** This report provides a detailed analysis of Notification No. 65 202425, issued on March 18, 2025, regarding an amendment to the import policy condition of Urea. The analysis is based solely on the provided text of the notification and aims to inform stakeholders about the changes and their implications. **3. Policy Overview:** * **Amendment to:** This notification amends the import policy related to ITC HS Code 31021010 within the ITC HS 2022, Schedule I, Import Policy. The original policy is affected through changes to import conditions. * **Core Objective(s):** The primary objective of this amendment, as inferred from the text, is to ensure a continued pathway for importing urea on government account through a designated agency. The goal is to maintain a consistent system for Urea import under the scope of STE. **4. Background and Rationale:** This amendment extends the STE status of Indian Potash Limited (IPL), which would otherwise expire. The notification references previous notifications (54/2015-20 dated 24.02.2023, 61/2015-20 dated 22.03.2023 and 79/2023 dated 18.03.2024), suggesting a series of prior extensions or modifications related to this import policy. The rationale for *this specific* amendment appears to be to ensure continuity in the import of Urea on Government account through IPL, preventing a disruption in the supply chain for agricultural grade urea. **5. Key Provisions / Changes:** This notification introduces the following key changes: * **Specific Part of Original Policy Changed:** The import policy condition under ITCHS Code 31021010 of Chapter 31 of ITC HS, 2022, Schedule I Import Policy is being amended. * **New Rule/Provision:** The State Trading Enterprise (STE) status of Indian Potash Limited (IPL) is extended from March 31, 2025, to March 31, 2026, for the import of Urea on Government account. * **Difference/Effect of Change:** This extension ensures that IPL remains the authorized entity for importing Urea on behalf of the government for another year. Without this amendment, IPL's authorization would have expired, potentially disrupting government-managed urea imports. **6. Target Audience and Stakeholders:** Based on the text, the primary target audience and stakeholders are: * **Indian Potash Limited (IPL):** As the designated State Trading Enterprise, IPL is directly affected by the extension of its STE status. * **Ministry of Commerce and Industry:** The notification requires approval from the Minister of Commerce and Industry. * **Government Agencies:** Government agencies involved in the import and distribution of Urea. * **Agricultural Sector:** Ultimately, farmers and the agricultural sector benefit from the continued availability of Urea through government imports. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry is responsible for implementing and overseeing the amended policy. Indian Potash Limited (IPL) is responsible for executing the imports. * **Timelines/Procedures:** The amendment sets a clear timeline, extending IPL's STE status until March 31, 2026. The procedures for import remain subject to Para 2.21 of FTP 2023 and other existing regulations (Notification No. 79/2023 dated 18.03.2024). * **Implementation specific to changes:** IPL should act on the extension of STE status by implementing import of Urea under Para 2.21 of FTP 2023. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this amendment is to: * Ensure the continued import of Urea on Government account without disruption. * Maintain a stable supply of Urea for the agricultural sector. * Provide clarity and certainty for IPL in its role as the designated State Trading Enterprise for Urea imports. The amendment itself, by extending IPL's status, avoids potential disruptions to existing import channels and maintains the status quo. **9. Conclusion:** Notification No. 65 202425 extends the State Trading Enterprise (STE) status of Indian Potash Limited (IPL) for the import of Urea on Government account until March 31, 2026. This amendment is significant as it ensures the continued availability of Urea through government-managed channels, supporting the agricultural sector and maintaining supply chain stability. The amendment is a continuation of the existing policies and practices, rather than a radical shift.

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