Parliament Question: Enhancement of Domestic Fertilizer Production

GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF FERTILIZERS LOK SABHA UNSTARRED QUESTION NO. 1139 TO BE ANSWERED ON 05.12.2025 Enhancement of Domestic Fertilizer Production 1139: Shri Jagdambika Pal: Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state: (a) the specific measures undertaken by the Government to enhance domestic fertilizer production and reduce dependency on imports, particularly in the context of urea and DAP; (b) the international partnerships or bilateral agreements entered into by the Government to secure reliable and cost-effective fertilizer imports and their role in stabilizing the domestic fertilizer supply chain; (c) whether the Government is aware of the fact that some fertilizer companies are bundling or tagging other agricultural products with urea or DAP sales and if so, the steps taken to regulate or prohibit such practices in the interest of farmers; (d) the steps being taken by the Government to reduce excessive reliance on chemical fertilizers and to promote the adoption of sustainable practices under schemes like PM-PRANAM; and (e) the details of domestic fertilizer production, availability and distribution during the last three years in Uttar Pradesh, district-wise and year-wise? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SMT. ANUPRIYA PATEL) (a): With regard to Urea, 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,-2- 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. Further, the Government has implemented Nutrient Based Subsidy Policy w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under NBS policy, P&K fertilizers are covered under Open General License (OGL) and companies are free to import these fertilizers as per their business dynamics. To boost 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 subsidy 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.-3- (b): Government of India generally does not directly enter into international partnerships or agreements for securing fertilizer supplies from foreign countries. Instead, the Government facilitates Indian fertilizer companies in entering into Agreements, Memoranda of Understanding (MoUs), and Joint Ventures (JVs) with foreign suppliers to ensure a reliable supply of fertilizers and raw materials to India. The Agreements, MoUs, and Joint Ventures entered into by Indian fertilizer companies with foreign suppliers are as follows:  For Di-Ammonium Phosphate (DAP) and NPK fertilizers, Indian companies have established LTAs/MoUs with suppliers in Saudi Arabia, Russia, Morocco, and the UAE. For Muriate of Potash (MOP), LTAs/MoUs are in place with suppliers from Jordan, Russia, Turkmenistan, Canada, Israel, and Belarus.  In addition, Indian companies have secured LTAs/MoUs for key raw materials used in fertilizer production. These agreements cover Rock Phosphate from Jordan, Morocco, Togo, and Mauritania, Phosphoric Acid from Morocco, Tunisia, and Senegal, and Ammonia from Saudi Arabia, Oman, Japan, and Malaysia.  Beyond these agreements, Indian fertilizer companies have also entered into joint ventures with foreign companies to ensure a long-term, consistent supply of both fertilizers and raw materials. For MOP, a joint venture has been established with Canada, while for Ammonia and Urea, joint venture is in place with Oman. Additionally, for Phosphoric Acid and Rock Phosphate, joint ventures have been formed with companies from Jordan, Senegal, Tunisia, Morocco, and South Africa. (c): Fertilizers are declared as an essential commodity under the Essential Commodities Act, 1955 and notified under Fertilizer Control Order, 1985. State Governments are empowered to take action against persons involved in black- marketing/overpricing, as per provisions of EC Act. Any complaints received at Department of Fertilizers level regarding black marketing/over-pricing of fertilizers is sent to concerned State Government to take appropriate action under Essential Commodities Act, 1955 and Fertilizer Control Order, 1985. The complaints received in DoF regarding tagging/bundling through CPGRAMS portal, which is an online platform for grievance redressal. These complaints were sent to concerned state governments for necessary action as per FCO-1985. Further, tagging/bundling of other products with fertilizers is not encouraged by Department of Fertilizers. Accordingly, suitable directions are issued to fertilizer companies directing them not to indulge in such practices. Further, State-4- Governments are also advised to take strict action as per extant rules to prevent tagging. In addition to this, Department of Agriculture and Farmers’ Welfare regularly advise the State Government to prohibit forceful tagging of Nano-fertilizer/Bio-stimulant/Bio- fertilizers with conventional bags of fertilizer and immediately take strict legal action against defaulters. (d): Organic farming is being promoted through Paramparagat Krishi Vikas Yojana (PKVY) in all the States/UTs except North Eastern States and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) for the North Eastern States since 2015-16. Both schemes stress on end-to-end support to farmers engaged in organic farming i.e. from production to processing, certification and marketing. Primary focus of the schemes is to form organic clusters, with preference to small and marginal farmers, to create a supply chain. Both the schemes are implemented through States /UT Governments. Under PKVY, assistance of Rs. 31,500 per ha in 3 years is provided for promotion of organic farming. Out of this, assistance of Rs. 15,000 per ha is provided to farmers through Direct Benefit Transfer for on- farm /off –farm organic inputs. Under MOVCDNER, assistance of Rs. 46,500/ha in 3 years is provided for creation of Farmers Producer Organization, support to farmers for organic inputs etc. Out of this, assistance @ Rs. 32500/ ha is provided to farmers for off -farm /on –farm organic inputs under the scheme including Rs. 15,000 as Direct Benefit Transfer to the farmers. Achievements of PKVY Scheme since its inception (as on 31.10.2025):  16.90 lakh hectares of land converted to organic farming.  28.35 lakh farmers benefited from the scheme.  Since 2015-16, a total of ₹2535.74 crore (central share) has been released under PKVY Scheme (as of 31.10.2025). Achievements of MOVCDNER Scheme since its inception (as on 31.10.2025):  2.36 lakh hectares brought under organic farming.  2.70 lakh farmers benefited.  Since 2015-16, a total of ₹1480.48 crore (central share) has been released under MOVCDNER scheme (as of 31.10.2025). Further, Natural farming is being promoted through National Mission on Natural Farming (NMNF).The National Mission on Natural Farming (NMNF) was approved by the Union Cabinet on 25.11.2024 to promote Natural Farming as a mass movement across the country. The Mission has been initiated to strengthen agriculture practices with scientifically backed agro ecological approaches towards sustainability, climate resilience and safe food. The Mission aims to reduce input cost of production to the farmers & dependence of farmers with the external markets, rejuvenate soil health & fertility, build resilience of the farm and farmers against climate risks, and provide-5- safe, healthy & nutritious food for the farmers, their families & the consumers. The overall financial outlay is ₹2481 crore (Central share of ₹1584 crore & States’ share ₹897 crore) till 15th Finance Commission period (March 2026). The NMNF is targeted to be implemented in 15,000 clusters to initiate Natural Farming in 7.5 Lakh Ha area and envisaged to make 1 crore farmers aware of Natural Farming. For easy availability of natural farming bio-inputs like Jeevamrit, Beejamrit, etc., 10,000 need-based Bio-input Resource Centres envisaged be set up by practicing natural farming farmers, Primary Agriculture Credit Society/ Farmer Producer Organisations, Self Help Groups, local rural entrepreneurs, Krishi Vigyan Kendras, etc. An output-based incentive of ₹4000/- per acre per year per farmer for 2 years envisaged to be provided to the farmers to practice natural farming, train more farmers, upkeep of livestock (preferably local breed of cow)/ preparation of natural farming inputs including purchase of mixing & storage containers, etc./ purchase of natural farming inputs from Bio-input Resource Centres. Achievements of NMNF Scheme:  ₹517.17 crores have been sanctioned/ released to 30 States/UTs & Central Agencies in F.Y. 2025-26 against a Budget allocation of ₹616.01 crores. Implementation Status of NMNF: NMNF Scheme has been implemented in all States with 17,639 clusters have been formed covering an area of 6.35 lakh hectares. 32,220 Community Resource Persons (CRPs) have been trained through Krishi Vigyan Kendras (KVKs), Agricultural Universities (AUs), and Local Natural Farming Institutions (LNFIs) to provide continuous handholding support to farmers to practise Natural Farming. So far, 15.78 lakh farmers have been enrolled under the scheme. 3,517 BRCs have been set up to easily provide natural farming bio-inputs like Jeevamrit, Beejamrit, etc., More than 4,000 Scientists, Farmer Master Trainers (FMTs), and State & District officials have been trained under the Mission. Further, 806 training institutions, including 530 KVKs, 82 AUs, and 194 Local Natural Farming Institutions (LNFIs), have been identified to strengthen capacity-building activities. Total of 28.74 lakh farmers have been sensitized on Natural Farming through various outreach initiatives. Natural Farming Certification System (NFCS) has been initiated as “PGS- INDIA NATURAL” for certification of all produces of natural farming in accordance with the Natural Farming Standards. It is an online certification system and implemented through National Centre for Organic and Natural Farming (NCONF). More than 5.0 lakhs farmers have been registered under the natural farming certification system till date with more than 60,000 farmers issued NF certificates. Certification will enable farmers to get premium price for natural products.-6- In addition to this, Kisan Sangoshthis are conducted by the fertilizer companies for extensive field interaction with farmers, local farmer cooperatives, panchayats etc. 25 Fertilizer Marketing Companies (FMCs) conducted 11,556 Camps/Kisan Sangoshthis across the Country during February 2025 to November 2025. Camps/Kian Sangoshthis are being organised for promotion of FOM/LFOM/PROM under PM-PRANAM by the Fertilizer companies. This initiative focuses on critical areas such as balanced use of fertilizers, integrated nutrient management (INM), promotion of organic farming, and soil health improvement. Awareness activities for farmers include demonstrations on the application of FOM, LFOM, PROM, PDM, and City Compost across various crops. This camps also feature technical sessions on appropriate fertilizer dosages, crop- specific application techniques, and the benefits of organic inputs. The program aims to enhance farmers understanding of INM, encourage adoption of balanced nutrient practices, and strengthen outreach and credibility through demonstration plots and interactive farmer engagement. The Government is regularly coordinating with State and Union Territory Governments to support and promote their efforts under this scheme. Further, Under Market Development Assistance (MDA) Scheme, assistance @ Rs.1500/MT is being provided to CBG plants/Fertilizer Marketing Companies for promotion of soil carbon enhancers, viz., Fermented Organic Manure (FOM)/Liquid Fermented Organic Manure (LFOM) and organic fertilizer, viz., Phosphate Rich Organic Manure (PROM) produced at plants under GOBARdhan initiative, with total outlay of Rs.1451.84 Crore (FY 2023-24 to 2025-26), which includes, a corpus of Rs. 360 Crore for research gap funding, etc. Following measures are taken up for promotion of FOM/LFOM/PROM: i. 125 KVKs collaborating with nearby CBG plants to ensure farmers’ access to information about FOM/LFOM and to facilitate the availability of FOM for awareness and demonstration activities. ii. D/o Fertilizers entrusted HURL and RCF to attach Agriculture Extension Officers with CBG/BG Plants to facilitate them with promotion of FOM/LFOM/PROM and to resolve issues. iii. Conduct farmer trainings, demonstrations, and awareness programs on the benefits and application methods of organic fertilizers iv. Ensure availability and supply of organic & waste-derived fertilizers through marketing channels and dealer networks. v. Facilitate capacity building by providing technical guidance to farmers for adopting sustainable nutrient practices-7- Above initiatives of the Government are expected to address the imbalanced use of chemical fertilizers thereby reducing chemical fertilizer use. (e): Domestic Fertilizer production in Uttar Pradesh for the last three years in Uttar Pradesh is given as under: (In LMT) Name of the Year Company 2022-23 2023-24 2024-25 IFFCO-Phulpur 6.51 7.05 7.64 IFFCO-Phulpur 12.24 12.00 10.71 Expn. IFFCO-Aonla 11.52 12.26 11.35 IFFCO-Aonla 11.92 11.36 12.44 Expn. KFCL-Kanpur 6.28 6.85 6.12 Indorama- 11.17 11.38 12.18 Jagdishpur Yara-Babrala 11.82 12.31 13.23 KFL/KSFL- 10.95 10.66 11.35 Shahjahanpur HURL: Gorakhpur 8.66 13.50 12.01 Total 91.07 97.37 97.03 The information regarding the requirement, availability and sales of fertilizers, viz. Urea, DAP, MOP and NPKS, in the State of Uttar Pradesh during the period from 2022-23 to 2025-26 (till November, 2025), year-wise, is placed at Annexure. However, the distribution of fertilizers within the State at district/block/village level is done by the concerned State Government. *****-8- ANNEXURE Annexure referred to in reply to part ( e) of Lok Sabha Unstarred Question No. 1139 for answer on 05.12.2025. UTTAR PRADESH REQUIREMENT, AVAILABILITY & SALES OF FERTILIZER 2022-23 to 2025-26 (TILL NOV 25) Fig. in LMT UREA DAP MOP NPKS YEAR S.No Requirement Availability DBT Sales Requirement Availability DBT Sales Requirement Availability DBT Sales Requirement Availability DBT Sales RABI 2025-26 1 (TILL NOV 25) 13.00 21.32 9.36 10.75 12.17 8.38 0.76 1.63 0.86 5.50 8.66 4.72 2025-26 2 KHARIF 2025 39.92 48.93 40.24 10.00 12.45 7.70 1.25 1.64 0.65 5.00 8.36 3.64 3 2024-25 77.00 91.72 79.18 24.05 21.55 19.51 1.72 2.50 1.76 14.50 12.85 10.50 4 2023-24 76.15 91.83 74.53 24.50 25.76 21.61 2.35 1.62 1.21 9.50 10.13 7.93 5 2022-23 77.50 87.39 74.72 24.70 27.69 22.38 3.36 1.42 1.22 7.00 6.64 4.79 1. Primary Indicator of comfortable availability: Availability > Requirement 2. Secondary Indicator of comfortable availability: Availability > Sales