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GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
RAJYA SABHA
UNSTARRED QUESTION NO. 349 TO BE ANSWERED ON: 03.02.2026
Demand for Urea, DAP, and NPK fertilizers in the country
349 # : SHRI RAJENDRA GEHLOT:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) whether there has been a continuous increase in the demand for Urea, DAP
and NPK fertilizers in the country during the last three years and if so, the details
thereof;
(b) whether Government has also imported Urea, DAP and NPK fertilizers during
the last three years to ensure their availability and if so, the details thereof; and;
(c) whether Government has formulated any long-term plan to achieve self-reliance
in the fertilizer sector and if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a) Before the commencement of each cropping season, Department of Agriculture
and Farmers Welfare (DA&FW) assesses the State-wise & month-wise requirement of
fertilizers viz. Urea, DAP and NPKS. The requirement is assessed taking into account
the projected gross cropped area, irrigated area, last three seasons’ consumption
pattern and crop wise recommended dose of fertilizers as per soil health fertility status
etc. To fulfil this requirement of fertilizers in the States as per assessment done by
DA&FW, D/o Fertilizers allocates adequate quantities of fertilizers to States by issuing
monthly supply plans.
The information regarding requirement/demand of these fertilizers across the States in
last 3 years i.e. in 2022-23, 2023-24 &2024-25 is as under:
Fig. In LMT
PRODUCT 2022-23 2023-24 2024-25
UREA 359.00 356.00 364.01
DAP 114.00 110.00 111.92
NPKS 121.00 126.00 151.29-2-
(b) The information regarding the imports of Urea, DAP and NPK for the last 3
years is as follows:
Fig. In LMT
Year Urea DAP NPK
As reported by companies
2022-23 75.80 65.83 27.52
2023-24 70.42 55.67 22.17
2024-25 56.47 45.69 22.72
(c) With regard to Urea Fertilizers, it may be stated that the Government had
announced New Investment Policy (NIP) – 2012 on 2nd January, 2013 and its
amendment on 7th 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 25th
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.-3-
The Government has implemented Nutrient Based Subsidy (NBS) Scheme w.e.f.
01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under NBS Scheme, P&K
fertilizers are covered under Open General License (OGL) and companies are free to
import/manufacture these fertilizers as per their business dynamics.
To increase domestic 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 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.
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