Executive Summary:
This document provides answers to the Lok Sabha Unstarred Question No. 2293 regarding Ramagundam Fertilizers and Chemicals Limited (RFCL). It details RFCL's urea production and capacity utilization, fertilizer allocation mechanisms, plans for increasing production capacity, measures to address supply chain bottlenecks, and modernization funds. The answers cover the period from 2022-23 to June 2025.
Key Points / Main Content:
RFCL Production and Capacity Utilization:
* Production of neem-coated urea: 840.9 ('000 MT) in 2022-23, 1111.9 ('000 MT) in 2023-24, 1195.4 ('000 MT) in 2024-25, and 183.8 ('000 MT) until June 2025.
* Capacity utilization: 66.21% in 2022-23, 87.55% in 2023-24, 94.13% in 2024-25, and 57.89% until June 2025.
Fertilizer Allocation and Distribution:
* The Department of Agriculture, Government of Telangana, manages fertilizer allocation and distribution within Telangana after the supply plan is approved by the Department of Fertilizers.
* Allocation is based on fertilizer availability at the Point-of-Sale (PoS) level, average consumption patterns, and anticipated monthly requirements.
Production Capacity Increase:
* A proprietary equipment (HTER) in the ammonia plant is currently under repair, causing the plant to operate at 92% capacity.
* Upon successful repair of the HTER, the plant is expected to operate at optimal capacity.
Supply Chain Improvements:
* The urea distribution supply chain from RFCL is reinforced with handling and transportation facilities at major and minor rake points in Northern Telangana, coordinated by the NFL Marketing Team.
* Railway congestion and infrastructure issues are addressed by diverting rakes to nearby minor rake points.
* Road transport supplements supply when needed.
* 2,68,568.10 MT of urea was supplied through the Peddapalli rake point in the last two years.
Modernization Funds:
* No funds have been allocated for the modernization and technological upgradation of the RFCL facility.
Impact Analysis:
Department of Agriculture, Government of Telangana:
Impact: Responsible for the allocation and distribution of fertilizers to different districts within Telangana, ensuring timely availability to farmers.
Action Required: Continue managing fertilizer allocation based on PoS availability, consumption patterns, and anticipated needs.
RFCL:
Impact: Affected by the ongoing repairs to the HTER equipment, which currently limits production capacity.
Action Required: Expedite the repair of the HTER to restore the plant to optimal capacity.
Farmers in Telangana:
Impact: Dependent on the efficient distribution of fertilizers, particularly neem-coated urea, for their agricultural activities.
Action Required: Engage with the Department of Agriculture, Government of Telangana, to communicate fertilizer needs and ensure timely availability.
NFL Marketing Team:
Impact: Responsible for coordinating the handling and transportation of fertilizers from RFCL.
Action Required: Continue reinforcing the urea distribution supply chain by managing handling and transportation facilities at major and minor rake points in Northern Telangana.
Key Entities Referenced
Ramagundam Fertilizers and Chemicals Limited (RFCL): A fertilizer production company, the subject of the policy document, focusing on its production capacity and distribution.
SHRI VAMSI KRISHNA GADDAM: Member of LOK SABHA who raised the unstarred question about RFCL.
SMT. ANUPRIYA PATEL: Minister of State in the Ministry of Chemicals and Fertilizers, who answered the question.
Neem-coated prilled urea: A type of fertilizer produced by RFCL, specifically mentioned in the context of production details and capacity utilization.
Peddapalli, Telangana: A district in Telangana where RFCL-produced fertilizers are distributed.
Telangana: The state where the RFCL fertilizers are distributed and whose Department of Agriculture manages the allocation and distribution.
Department of Fertilizers: The department responsible for approving the supply plan for fertilizers in Telangana.
HTER Haldor Topsoe Exchange Reformer: A proprietary equipment in RFCL's ammonia plant that is currently out of service for repair, impacting production capacity.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS & FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO. 2293 TO BE ANSWERED ON: 01.08.2025
RFCL Production Capacity of Fertilizers
2293. SHRI VAMSI KRISHNA GADDAM:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) the production details of neem-coated prilled urea at Ramagundam Fertilizers and
Chemicals Limited (RFCL) along with capacity utilization percentages achieved during
the last three and the current financial year;
(b) the specific allocation mechanism for RFCL-produced fertilizers to farmers and
distribution strategy for timely availability in Peddapalli and surrounding districts of
Telangana;
(c) the roadmap of the Government for increasing RFCL's production capacity beyond
current levels and timeline for achieving optimal capacity utilization;
(d) the measures undertaken to eliminate supply chain bottlenecks affecting fertilizer
distribution from RFCL to agricultural regions in North Telangana; and
(e) the funds allocated for modernization and technological upgradation of RFCL facility
and expected impact on meeting regional agricultural demand?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a): The production details and capacity utilization percentages of neem-coated urea at
Ramagundam Fertilizers and Chemicals Limited (RFCL) during the last three years and
current financial year are as follows:-2-
Production and Capacity Utilization (%) of Neem-Coated Urea during 2022-23 to
2025-26 (upto June 2025)
2025-26
Year 2022-23 2023-24 2024-25
(Till June 2025)
Total Production
840.9 1111.9 1195.4 183.8
(Figures in ‘000 MT)
Capacity Utilization
66.21 87.55 94.13 57.89
(%)
(b) : After the approval of supply plan by Department of Fertilizers, in Telangana, the
allocation/distribution of fertilizers to different districts is entirely managed by the
Department of Agriculture, Government of Telangana. The Department undertakes
allocations based on:
i. Availability of fertilizers at the Point-of-Sale (PoS) level i.e., ground stocks available
with the retailer for distribution to farmers.
ii. The average consumption pattern of the particular district was taken into account
and buffers were maintained both at Institution and Private bodies.
iii. Anticipated requirements for the upcoming month, ensuring timely availability to
farmers across all regions.
(c) : A proprietary equipment of Licensor HTER (Haldor Topsoe Exchange Reformer) in
ammonia plant is currently out of service for extensive repair work. As a result, the plant
is being operated at reduced load ~92% of its capacity. However, upon successful repair
of HTER, the plant is expected to operate at optimal capacity for which issue has been
taken up with Licensor.
(d) : The supply chain for distribution of Urea from RFCL is strongly reinforced with
provision of Handling and transportation facilities at all the Minor and Major rake points in
Northern Telangana, being coordinated by NFL Marketing Team. Bottlenecks of railway
congestion and infrastructure problems at major rake points were readily overcome by
diversion of rakes to nearest minor rake points which caters the fertilizer requirement of
same districts. Rakes were placed in Peddapalli and Jagtial in need of hour. Around
2,68,568.10 MT was supplied through Peddapalli rake point alone in period of last two
years. Even supplying of Urea by road to both Institution and private parties was also
used as an effective measure to supplement supply in need of hour.
(e) : There are no funds allocated for modernization and technological upgradation of
RFCL facility.
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