Executive Summary:
This document is a response to Lok Sabha Starred Question No. 296 regarding fertilizer imports, self-reliance in fertilizer production, and the potential establishment of a fertilizer factory in Meerut, Uttar Pradesh. It details India's fertilizer imports from China and Russia over the past three years, outlines the government's action plan to ensure adequate fertilizer supply and promote self-sufficiency, and clarifies the government's position on setting up a fertilizer factory in Meerut. The information provided pertains to data up to August 4, 2025, and the Kharif 2025 season.
Key Points / Main Content:
Fertilizer Imports:
* Details of urea, DAP, MOP, and NPK fertilizers imported from China and Russia from 2022-23 to 2024-25 are provided, showing a reduction in imports from China in 2024-25 compared to the previous two years.
* MOP includes both agricultural and industrial use.
Fertilizer Availability and Supply:
* The availability of Urea, DAP, NPKS, and MOP fertilizers has been adequate across the country during the Kharif 2025 season.
* Cumulative requirements, pro rata requirements, availability, DBT sales, and closing stock figures are provided for each fertilizer type as of August 4, 2025.
* The Department of Agriculture and Farmers Welfare (DAFW) assesses state-wise, month-wise fertilizer requirements in consultation with State Governments before each cropping season.
* The Department of Fertilizers allocates sufficient quantities of fertilizers to States based on projected requirements, using monthly supply plans and continuously monitoring availability.
* Fertilizer movement is tracked via the Integrated Fertilizer Monitoring System (iFMS).
* Weekly video conferences are conducted by DAFW and the Department of Fertilizers with State Agriculture Officials to address fertilizer dispatch.
Self-Sufficiency Initiatives (Urea):
* The New Investment Policy (NIP) 2012 (amended in 2014) aims to facilitate fresh investment in the urea sector.
* Six new urea units have been set up under NIP 2012, including four joint ventures and two private companies, each with a capacity of 12.7 LMTPA.
* The total indigenous urea production capacity has increased from 207.54 LMTPA in 2014-15 to 283.74 LMTPA in 2023-24.
* Revival of the Talcher unit via Talcher Fertilizers Limited (TFL) has been approved.
* A new Brownfield Ammonia-Urea Complex at Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup, Assam, has been approved.
* The New Urea Policy (NUP) 2015 incentivizes existing gas-based urea units to maximize production, leading to an additional production of 20-25 LMT annually.
Self-Sufficiency Initiatives (PK Fertilizers):
* The Government implemented the Nutrient Based Subsidy (NBS) Policy for Phosphatic and Potassic (PK) Fertilizers w.e.f. 01.04.2010.
* The number of PK fertilizers covered under NBS policy has increased from 22 grades in 2021 to 28 grades.
* Freight Subsidy on SSP is applicable since Kharif, 2022 to promote SSP usage.
Fertilizer Factory in Meerut:
* There is no proposal to set up a urea factory in Meerut, Uttar Pradesh.
Impact Analysis:
State Governments:
* Impact: State Governments are involved in assessing fertilizer requirements and coordinating with the central government for supply.
* Action Required: States need to accurately project their fertilizer requirements to DAFW and coordinate with central authorities to ensure timely dispatch and availability.
Fertilizer Companies (Public and Private):
* Impact: Fertilizer companies are responsible for importing and producing fertilizers to meet the allocated supply plans. They also benefit from government policies like NIP and NUP.
* Action Required: Companies need to align their production and import activities with government policies and supply plans.
Farmers:
* Impact: Farmers are the end-users of fertilizers and rely on their availability for crop production.
* Action Required: Farmers need to coordinate with state agriculture officials to communicate their fertilizer needs and ensure efficient use of available supplies.
Department of Agriculture and Farmers Welfare (DAFW):
* Impact: DAFW is responsible for assessing fertilizer requirements, coordinating with state governments, and monitoring fertilizer availability.
* Action Required: DAFW needs to continue assessing and projecting fertilizer requirements accurately and coordinate effectively with state governments and the Department of Fertilizers.
Department of Fertilizers:
* Impact: The Department of Fertilizers is responsible for allocating fertilizers to states, monitoring availability, and implementing policies to promote self-sufficiency.
* Action Required: The Department of Fertilizers must ensure sufficient fertilizer allocation, monitor supply and movement, and continue implementing policies to boost indigenous production and reduce import dependency.
Key Entities Referenced
China: Country from which India imports fertilizers.
Russia: Country from which India imports fertilizers.
Urea: A type of fertilizer, and a key focus of domestic production policies.
Meerut, Uttar Pradesh: City and state where the establishment of a chemical fertilizer factory was proposed.
DAP: Diammonium Phosphate, a type of fertilizer imported by India.
New Investment Policy (NIP) 2012: Government policy to encourage investment and self-sufficiency in the urea sector.
Nutrient Based Subsidy Policy: A policy implemented w.e.f. 01.04.2010 for Phosphatic and Potassic PK Fertilizers
Department of Agriculture and Farmers Welfare: Department responsible for assessing fertilizer requirements and coordinating with state governments.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS & FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
STARRED QUESTION NO. †*296 TO BE ANSWERED ON 08.08.2025
Setting up of Fertilizer Factory In Meerut
†*296. SHRI ARUN GOVIL:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) whether India imports fertilizers from China and Russia, if so, the details thereof;
(b) the action plan to overcome the shortage and become self reliant in production of
chemical fertilizers in the country;
(c) whether the Government proposes to set up a chemical fertilizer factory in Meerut,
Uttar Pradesh; and
(d) if so, the time-line by which the said factory is likely to be set up?
ANSWER
MINISTER OF HEALTH & FAMILY WELFARE AND CHEMICALS AND FERTILIZERS
(SHRI JAGAT PRAKASH NADDA)
(a) to (d): A statement is laid on the table of the House.-2-
STATEMENT REFERRED TO PART (a) TO (d) OF THE LOK SABHA STARRED
QUESTION NO †*296 FOR 08.08.2025 REGARDING “SETTING UP OF
FERTILIZER FACTORY IN MEERUT”:
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(a) : The details of fertilizers Imported from China and Russia during the past
three years, year-wise are as follow:
<Qty in LMT>
Country Urea DAP MOP* NPK
Year
As reported by the Companies
China 12.80 12.17 - 0.83
2022-23
Russia 6.26 9.24 0.85 22.21
China 18.65 22.28 - 0.30
2023-24 Russia 15.73 3.41 12.36 17.04
China 0.99 8.47 - 0.77
2024-25 Russia 9.23 2.69 18.00 18.27
* MOP includes both agricultures use & Industrial use
The import from China has significantly reduced in 2024-25 as compared to
previous two years.
(b): The availability of fertilizers viz. Urea, DAP, NPKS and MOP has remained
adequate across the country during the ongoing Kharif-2025 season as below:
ALL INDIA FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025 )
FIG. IN LMT
Cumulative
Pro rata Availability
Seasonal DBT Sales Closing
Requirement From
Requirement From Stock as
S.No Product From 01/04/2025
for KHARIF 01/04/2025 on
01/04/2025 to to
2025 to 04/08/2025
04/08/2025 04/08/2025
04/08/2025
1 UREA 185.39 124.41 165.80 131.56 34.29
2 DAP 56.99 40.35 42.38 28.39 14.01
3 MOP 11.13 7.44 13.41 7.40 6.02
4 NPKS 76.11 50.38 88.93 55.22 33.71
Further, following steps are taken by the Government every season for ensuring
timely and adequate supply of fertilizers in the country:-3-
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, Department of Fertilizers
allocates sufficient/adequate quantities of fertilizers to States by issuing
monthly supply plan and continuously monitors the availability. This
requirement is met through indigenous production and imports planned
well in advance.
iii. The movement of all major subsidized fertilizers is monitored throughout
the country by an on-line web-based monitoring system called integrated
Fertilizer Monitoring System (iFMS).
iv. Regular Weekly Video Conference is conducted jointly by DA&FW and
D/o Fertilizers with State Agriculture Officials and corrective actions are
taken to dispatch fertilizers as indicated by the State Governments.
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) 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. 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 25thMay, 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.-4-
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.
The Government has implemented Nutrient Based Subsidy Policy w.e.f.
01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under the policy, a fixed
amount of subsidy, decided on annual/bi-annual basis, is provided on notified P&K
fertilizers depending on their nutrient content. 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 increase fertilizer production, 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, with a view to boost manufacturing and
make country self-reliant in fertilizer production.
(ii) The number of P&K fertilizers covered under NBS policy has increased from
22 grades in 2021 to 28 grades with a view to boost manufacturing and make
country self-reliant in fertilizer production.
(iii) Freight Subsidy on SSP, which is an indigenously manufactured fertilizer,
is applicable since Kharif, 2022 to promote SSP usage for providing Phosphatic
or 'P' nutrient to the soil.
(c) & (d): There is no proposal of Government to set up a Urea factory in Meerut,
Uttar Pradesh.
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