Parliament Question: Import of Raw Materials for Fertilizers

GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF FERTILIZERS LOK SABHA STARRED QUESTION NO. 482* TO BE ANSWERED ON: 27.03.2026 Import of Raw Materials for Fertilizers *482. SMT. PRATIMA MONDAL:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

(a) the percentage of raw materials for fertilizers in the country that continue to be import-dependent in the light of geopolitical disruptions and the timeline for achieving domestic substitution;

(b) the corrective measures being implemented to address excessive urea consumption and soil nutrient imbalance; and

(c) whether it is true that our country continues to rely heavily on imports for critical Active Pharmaceutical Ingredients, if so, the details thereof and the reasons therefor? ANSWER THE MINISTER FOR CHEMICALS & FERTILIZERS AND HEALTH & FAMILY WELFARE (SHRI JAGAT PRAKASH NADDA)

(a) to (c): A statement is laid on the table of the House. ******-2- STATEMENT REFERRED TO LOK SABHA STARRED QUESTION NO 482* FOR

27.03.2026 REGARDING “IMPORT OF RAW MATERIALS FOR FERTILIZERS” TABLED BY SMT. PRATIMA MONDAL -----------

(a): India depends significantly on imports for key raw materials used in the production of fertilizers due to limited domestic reserves. This includes intermediates such as phosphoric acid, rock phosphate, sulphur, ammonia and muriate of potash for phosphatic and potassic (P&K) fertilizers, as well as natural gas for urea production.

As per information received from the Fertilizer Association of India (FAI), the estimated share of imported raw materials and intermediates for fertilisers in the country during 2024-25 is given in the table below:

Sl. No. Raw material/ Intermediates Estimated share of import (%)

1. Rock phosphate 86.0

2. Sulphur 52.0

3. Natural Gas for Urea Sector 78.0

4. Ammonia for Complex Fertilisers 75.0

5. Phosphoric Acid 52.0

6. Muriate of Potash 100.0 India is dependent on imports of raw materials of fertilizers to meet its demand.

To ensure a stable and assured supply in view of this dependency, Department of Fertilizers has facilitated the signing of Long Term Agreements (LTAs) between Indian companies and resource rich countries for raw materials to ensure domestic production. Details of LTAs is attached as Annexure-I.

Further, under the Nutrient-Based Subsidy (NBS) Scheme for P&K fertilizers, based on requests, new manufacturing units or increase in manufacturing capacity of existing units have been recognized/taken on record under the Scheme to increase domestic production. Under the Scheme, P&K fertilizers are covered under Open General License (OGL) and companies are free to import/manufacture these fertilizers as well as their raw materials as per their business dynamics. As per information received from the fertilizer companies, companies are establishing DAP/NPK plants with a combined annual capacity of 59.65 LMT and phosphoric acid/sulphuric acid plants with a combined annual capacity of 44.21 LMT.

Under the National Green Hydrogen Mission, the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme includes Mode-2A, which focuses on demand aggregation and procurement of Green Ammonia for the fertilizer sector. A provision has been made for procurement of 7.24 LMT of Green Ammonia by the Fertilizer companies for production of P&K fertilizers.

(b): Indian Council of Agricultural Research (ICAR) recommends soil test–based balanced fertilization, ensuring that nutrients are applied according to the actual needs-3- of the crops and supplementing soil nutrients. This is complemented by the balanced application of NPK fertilizers rather than excessive reliance on nitrogen alone.

Integrated Nutrient Management (INM) is promoted through the combined use of inorganic fertilizers and organic sources such as manure, compost, green manure, biofertilizers, and crop residue recycling, which helps maintain soil health and reduce chemical fertilizer dependency.

Efficient fertilizer use is encouraged through practices such as split application of nitrogen, proper placement of fertilizers, and the use of slow-release fertilizers, neem-coated urea, and nitrification inhibitors to minimize nutrient losses. The use of biofertilizers and adoption of organic farming practices further support sustainable nutrient supply and reduce urea consumption. In addition, proper soil and water management practices enhance nutrient use efficiency and prevent losses through leaching and runoff.

ICAR also engaged in capacity building through farmer training, demonstrations, and awareness programs that plays an important role in promoting these practices. Together, these measures help reduce excessive urea consumption, ensure balanced nutrient application, and improve soil health while protecting the environment.

(c): In FY 2024-25, India imported 200 categories of Active Pharmaceutical Ingredients

(APIs), bulk drugs, and drug intermediates worth approximately USD 4.35 billion, as per HSN (Harmonised System of Nomenclature) based import data. China accounted for about 73.7% of these imports. The details of major source countries with high import dependence are placed at Annexure-II.

Factors contributing to this dependence include low-cost manufacturing of API, evolved industrial infrastructure, low cost of utilities such as power and competitive price derived from economies of scale in the source countries.

*****-4- Annexure-I Annexure referred to in the reply to part (a) of the Lok Sabha Starred Question No. 482, to be answered on 27.03.20261. Rock Phosphate:

Jordan Indian Counterpart Product Annual Duration (Years) Company company Quantity

(MT) Ostwal JPMC Rock 5,00,000 10 yrs Phosphate May 2022 to April 2032 Morocco Indian Counterpart Product Annual Duration (Years) Company company Quantity (MT) PPL OCP Rock 16,00,000 to 10yrs Phosphate 18,00,000 (31-Dec-23 to 30-Nov-33) Togo Indian Company Counterpart Product Annual Quantity Duration (Years) company (MT) FACT SNPT Rock 2,40,000 (non- 3 yrs Phosphate binding) 10.02.2025 to

09.01.2028 Mauritania Indian Company Counterpart Product Annual Quantity Duration (Years) company (MT) RCF M/s. Atlantic Rock 1,50,000 (non- 3 yrs Minerals Phosphate binding) 2025 to 2028 SARL-5-

2. Phosphoric Acid:

Morocco Indian Counterpart Product Annual Duration (Years) Company company Quantity (MT) PPL OCP Phosphoric 3,00,000 to Yearly acid 3,50,000 (Quarterly renewal Agreement) Indorama OCP Phosphoric 1,20,000 MT of Ongoing, signed on Acid P2O5 01.06.2021

Total: 4,20,000 to 4,70,000 Tunisia Indian Company Counterpart Product Annual Duration (Years) company Quantity (MT) GSFC TIFERT Phosphoric 30yrs Acid 1,80,000 (21/08/2006 to 21/08/2036) Senegal Indian Company Counterpart Product Annual Quantity Duration (Years) company (MT) IFFCO ICS Phosphoric 34 years Acid 5,50,000 Started: 17-May- 99

3. Ammonia Saudi Arabia Indian Company Counterpart Product Annual Duration (Years) company Quantity (MT) CIL MA’ADEN Ammonia 6,00,000 (+/- 3yrs 10%) (01/01/2024 to 31/12/2026)-6- Oman Indian Company Counterpart Product Annual Quantity Duration (Years) company (MT) PPL East West Ammonia 3,50,000 3 years General 01-Aug-24 to 31-Jul- Trading, 27 Dubai Japan Indian Counterpart Product Annual Quantity Duration (Years) Company company (MT) Indorama ITOCHU Ammonia 15,000 - 60,000 MT 1 yr (01.01.25 to 31.12.25) Malaysia Indian Company Counterpart Product Annual Quantity Duration (Years) company (MT) PPL Itochu Ammonia 50,000 to 90,000 1 Year Corporation (01-01-25 to 31-12-

25)-7- Annexure-II Annexure referred to in the reply to part (c) of the Lok Sabha Starred Question No. 482, to be answered on 27.03.2026

The list of major source countries with high import dependence:

S. Import from Globe for Bulk Value (in Share (%) No drugs and drug intermediates $ Mn) 1 China 3,204.67 73.71 2 European Union 593.13 13.64 3 Singapore 108.27 2.49 4 United States of America 85.18 1.96 5 Japan 78.97 1.82 6 Switzerland 44.67 1.03 7 Mexico 34.79 0.80 8 United Kingdom 33.25 0.76 9 Hongkong 22.99 0.53 10 Malaysia 22.37 0.51 11 Others 119.47 2.75 Total 4,347.75 100.00

Source: Directorate General of Commercial Intelligence and Statistics

(DGCIS) ***