Parliament Question: Domestic production and import of fertilizers

GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF FERTILIZERS RAJYA SABHA UNSTARRED QUESTION NO. 2741 TO BE ANSWERED ON: 17.03.2026 Domestic production and import of fertilizers 2741. SHRI RAGHAV CHADHA: Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state: (a) the year-wise data on domestic production of urea, DAP and MOP against total demand and the quantum of imports made to bridge the gap in the last five years; (b) the names and capacities of new fertilizer plants commissioned or revived during this period and the current operational status thereof; (c) whether Government has conducted a vulnerability assessment of supply disruptions arising from import dependence on specific countries and if so, the findings thereof; and (d) the policy measures put in place to strengthen domestic production capacity and reduce reliance on imported fertilizer inputs? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SMT. ANUPRIYA PATEL) (a) : The year-wise domestic production of Urea, DAP and MOP during the last years from 2020-21 to 2024- 25 are as under:- Domestic Production of Urea and DAP from 2020-21 to 2024-2025 (Figures in LMT) Year Urea DAP 2020-21 246.05 37.74 2021-22 250.72 42.22 2022-23 284.94 43.47 2023-24 314.09 42.93 2024-25 306.67 37.69 Note: *MOP is not produced domestically and is100% imported.-2- The demand/requirement of fertilizers such as Urea, DAP and MOP during the last five years from 2020-21 to 2024-25 are as under:- Demand/Requirement of fertilizers such as Urea, DAP and MOP from 2020-21 to 2024-2025 (Figures in LMT) Year Urea DAP MOP 2020-21 364.01 111.92 22.21 2021-22 356.08 110.18 27.62 2022-23 359.19 114.20 34.17 2023-24 356.53 123.90 37.10 2024-25 350.64 107.76 35.51 The import of fertilizers such as Urea, DAP and MOP during the last five years from 2020-21 to 2024- 25 are as under:- Import of fertilizers such as Urea, DAP and MOP from 2020-21 to 2024-2025 (Figures in LMT) As Reported by the Companies Year Urea DAP MOP * 2020-21 98.28 48.82 42.27 2021-22 91.36 54.62 24.60 2022-23 75.80 65.83 18.66 2023-24 70.42 55.67 28.69 2024-25 56.47 45.69 35.41 MOP includes both Agriculture and Industrial use* (b) to (d): With regard to Urea Fertilizers, 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. Ramagundam, Gorakhpur, Barauni and Sindri units have started Urea production on 22.03.2021, 07.12.2021, 18.10.2022 & 05.11.2022 respectively. Therefore, these units have together added urea production capacity of 50.8 LMTPA. Further, an exclusive policy for 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-3- production within the existing premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup, Assam. Both are under execution. The Government has implemented Nutrient Based Subsidy (NBS) Scheme w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under the 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 reduce dependence on imported Phosphatic fertilizers and make country self-reliant the following measures have been taken by the Government: (i). Department of Fertilizers has issued guidelines on 18.01.2024 to ensure reasonableness of MRP and encourage domestic production. (ii). 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. (iii). The number of P&K fertilizers covered under NBS Policy has increased from 22 grades in 2021 to 28 grades. (iv). 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. The availability of fertilizers has remained adequate in the country during Kharif 2025 and Rabi 2025-26 seasons. Further, Following steps are taken by the Government every season for ensuring timely and adequate availability of all fertilizers in the country: (i). Before the commencement of each cropping season, Department of Agriculture and Farmers Welfare (DA&FW), in consultation with all the State Governments, assesses the State-wise & month-wise requirement of fertilizers. (ii). On the basis of requirement projected by DA&FW, Department of Fertilizers allocates adequate quantities of fertilizers to States by issuing monthly supply plan and continuously monitors the availability. (iii). The movement of all major subsidized fertilizers is monitored throughout the country by an on-line web-based monitoring system called integrated Fertilizer Management System (iFMS). (iv). The State Governments are regularly advised to coordinate with manufacturers and importers for streamlining the supplies through timely placement of indents. (v). Regular coordination meetings are held with Ministry of Railways for giving sufficient rakes, priority to fertilizers and for timely evacuation of rakes for States. (vi). The import of fertilizers are done well in advance to meet the gap between requirement and production so that adequate availability can be ensured in the country. ******