**Executive Summary**
This document summarizes the Indian government's response to questions regarding the self-reliance of the fertilizer sector, specifically addressing the demand, import, and long-term plans for urea, DAP, and NPKS fertilizers. It provides data on fertilizer requirements, imports, and outlines measures taken to increase domestic production, including the New Investment Policy (NIP) - 2012, the Nutrient Based Subsidy (NBS) Policy, and other initiatives. This response was prepared by the Minister of State in the Ministry of Chemicals & Fertilizers on December 5, 2025.
**Key Points / Main Content**
* **Fertilizer Requirement Assessment:**
* The Department of Agriculture and Farmers Welfare (DA&FW) assesses State-wise and month-wise fertilizer requirements (Urea, DAP, NPKS) before each cropping season.
* Assessment factors include projected gross cropped area, irrigated area, past consumption patterns, and crop-wise fertilizer recommendations based on soil health.
* The Department of Fertilizers allocates fertilizers to States through monthly supply plans based on DA&FW assessments.
* **Fertilizer Demand (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 |
* **Fertilizer Imports (in LMT):**
| YEAR | UREA | DAP | NPK |
| :------ | :---- | :---- | :---- |
| 2022-23 | 75.80 | 65.83 | 27.52 |
| 2023-24 | 70.42 | 55.67 | 22.17 |
| 2024-25 | 56.47 | 45.69 | 22.72 |
* **Government Initiatives for Self-Reliance:**
* New Investment Policy (NIP) - 2012, as amended in 2014, to facilitate investment in the Urea sector.
* Six new Urea units have been set up under NIP-2012, including four Joint Venture Companies (JVCs) of nominated PSUs and two units by private companies.
* These new units have added 76.2 LMTPA of Urea production capacity, increasing total indigenous capacity to 283.74 LMTPA.
* An exclusive policy for revival of Talcher unit through JVC to set up a new Greenfield Urea plant.
* Approval for a new Brownfield Ammonia-Urea Complex of 12.7 LMT annual capacity at Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup, Assam.
* Nutrient Based Subsidy (NBS) Policy implemented since 2010 for Phosphatic and Potassic (P&K) Fertilizers, covered under Open General License (OGL).
* New manufacturing units and capacity increases are recognised under the NBS subsidy scheme.
* Increase in P&K fertilizer grades covered under NBS policy from 22 (2021) to 28.
* Freight Subsidy on SSP approved since Kharif, 2022.
**Impact Analysis**
**Fertilizer Manufacturers**
*Impact:* Increased domestic production capacity of urea will benefit manufacturers. Those participating in NIP-2012 and NBS programs will be significantly affected through investment and subsidy.
*Action Required:* Manufacturers should stay informed about policy changes and investment opportunities under the NIP and NBS schemes.
**Farmers**
*Impact:* Increased availability of domestically produced fertilizers and subsidised P&K fertiliser should translate to more stable prices and availability of fertilisers.
*Action Required:* Farmers should be aware of the fertilizer supply plans in their respective States and utilize fertilizers according to soil health recommendations.
**State Governments**
*Impact:* The State Governments will have to coordinate with DA&FW on the assessment of the requirement.
*Action Required:* The State Governments need to work with the DA&FW on the State-wise and month-wise fertilizer requirements for each cropping season.
Key Entities Referenced
Ministry of Chemicals and Fertilizers: Primary ministry responsible for fertilizer policy and mentioned throughout the document.
Nutrient Based Subsidy (NBS) Policy: A key policy impacting the availability and manufacturing of P&K fertilizers.
New Investment Policy (NIP) - 2012: Policy aimed at promoting fresh investment in the Urea sector.
Urea: A primary fertilizer discussed in the context of domestic production, imports, and demand.
DAP: A primary fertilizer discussed in the context of domestic production, imports, and demand.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO. 978 TO BE ANSWERED ON: 05.12.2025
SELF-RELIANCE IN FERTILIZER SECTOR
978: DR. SAMBIT PATRA:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) whether there is a steady increase in the demand for urea, DAP and NPKS fertilizersin the
country during the last three years and if so, the details thereof;
(b) whether the Government has also imported urea, DAP and NPKS fertilizers to ensure their
availability during the last three years and if so, the details thereof; and
(c) whether the Government has made any long-term plan to achieve the goal of self-reliance
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 Statesin 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, the Government had announced New Investment Policy (NIP) - 2012
on 2nd January, 2013 and its amendment on 7thOctober, 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) at Gorakhpur in Uttar Pradesh, Sindri in Jharkhand and Barauni in Bihar, respectively. The
units set up by private companies are PanagarhUrea unit of Matix Fertilizers and Chemicals Ltd.
(Matix) in West Bengal; and Gadepan- Ill 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.
Moreover, the Government has also implemented Nutrient Based Subsidy (NBS) 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/manufacture these
fertilizers as per their business dynamics.
To boost 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 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.
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