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GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO. 3380 TO BE ANSWERED ON: 07.08.2026
Shortage of Urea and DAP
3380. Shri Suresh Kumar Shetkar:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) whether the Government has identified the regions where Urea and DAP
shortages were reported in the country during the last three years, if so, the details
thereof and remedial action taken thereon, State/district-wise;
(b) whether the Government has strengthened enforcement mechanisms against
diversion, illegal sale and misuse of subsidized Urea and DAP fertilizers, if so, the
details of cases registered and action taken thereon;
(c) whether the Government proposes to provide additional financial assistance or
special measures for small and marginal farmers affected by increasing fertilizer
costs, if so, the details thereof and if not, the reasons therefor;
(d) whether the Government has reviewed the fertilizer import policy, long-term
supply agreements and domestic manufacturing plans to ensure uninterrupted
availability of DAP and other essential fertilizers, if so, the details thereof; and
(e) whether the Government has prepared a long-term fertilizer security roadmap for
covering Urea and DAP production, import management, subsidy reforms and
affordable availability for farmers, 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), in consultation with all the State Governments,
assesses the State-wise & month-wise requirement of fertilizers. On the basis of
requirement projected by DA&FW, Department of Fertilizers (DoF) allocates adequate
quantities of fertilizers to States by issuing monthly supply plan and continuously
monitors the availability.Further, the distribution of fertilizers within the State at district/block level is done by
the respective State Government.
Accordingly, the availability of Urea and DAP has remained adequate across the
States during the last three years. The State-wise information regarding the
requirement, availability and sales of said fertilizers during the said period is placed
at Annexure-A.
(b) 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 diversion,
illegal sale and misuse of fertilizers, as per provisions of EC Act. Any complaint
received at Department of Fertilizers level regarding such malpractices is sent to
concerned State Government to take appropriate action under Essential Commodities
Act, 1955 and Fertilizer Control Order, 1985.
Further, Department of Agriculture and Farmers Welfare (DA&FW) in consultation
with the State Governments is regularly monitoring the enforcement action taken by
State Governments against the cases of black-marketing, diversion, hoarding and
other malpractices on weekly basis.
Accordingly, information received from the DA&FW regarding the action taken by the
State Governments to check diversion and other malpractices during the ongoing
Kharif 2026 season, for the period from April 2026 to July 2026 (till 31.07.2026), is
placed at Annexure-B.
(c) to (e) Under the Urea Subsidy Scheme, Urea is provided to the farmers at a
statutorily notified Maximum Retail Price (MRP). The MRP of 45 kg bag of Urea is
Rs. 242 per bag (exclusive of charges towards neem coating and taxes as
applicable). The difference between the delivered cost of Urea at farm gate and net
market realization by the Urea units is given as subsidy to the Urea
manufacturer/importer by the Government of India. Accordingly, all farmers are being
supplied Urea at the subsidized rate.
Further, 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 efficientas 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 269.42 LMTPA during 2026-27. 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
named as Assam Valley Fertilizer and Chemical Company Ltd. (AVFCCL). These two
projects are under execution phase.
Also, 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 a record Urea Production at 314.07 LMT during
2023-24. During 2025-26, 293.30 LMT of Urea was produced in the country.
Besides, on 15.07.2026, CCEA approved New Investment Policy for Urea (NIPU) for
Aatmanirbhar Bharat-2026 for making fresh investments in Urea Sector.
In addition, the Government has implemented Nutrient Based Subsidy (NBS)
Scheme w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under NBS
Scheme, MRP of P&K fertilizers is decontrolled and companies are free to fix MRP
as per their business dynamics at a reasonable level. The NBS subsidy is provided
to manufacturer/importer on notified P&K fertilizers on its PoS sale during the season,
depending on their nutrient content to ensure availability of fertilizers to farmers. The
volatility in international prices of key fertilizers and raw materials is considered while
fixing NBS rates for P&K fertilizers so that fertilizers remain affordable to the farmers.
Further, to make DAP being a key fertilizer, available at affordable price of Rs. 1350
per 50 kg bag, special provisions like Rs. 3500 per MT to cover 'Other Costs' which
includes costs incurred from factory gate to farm gate, advantage / disadvantage due
to increase / decrease in international prices, pro provision for GST component
included in the MRP and provision for reasonable return @ 4% of net MRP (MRP-
GST) have been extended to both imported and domestic DAP and imported TSP
over and above NBS subsidy for Kharif 2026 season to keep the prices of fertilizers
stable.
However, to reduce dependence on imported Phosphatic fertilizers and make country
self-reliant measures have been taken to encourage domestic production through
guidelines 18.01.2024 on reasonableness of MRP, wherein importers/manufacturersand integrated manufacturers are given reasonable profit of 8%, 10% and 12%
respectively; 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 Scheme; the number of P&K fertilizers covered under NBS Scheme has
increased from 22 grades in 2021 to 28 grades; Freight Subsidy on SSP, which is an
indigenously manufactured fertilizer, is being provided since Kharif, 2022 to promote
SSP usage for providing Phosphatic or 'P' nutrient to the soil. Further the rates of of
nutrients nutrients under NBS scheme are decided on biannual basis to ensure
availability of fertilizers under the Scheme.
Furthermore, India depends on import of fertilizers to meet its demand. Keeping in
view of this, Government of India facilitates Indian fertilizer companies in entering
into long term arrangements with overseas suppliers for assured supplies of fertilizers
in the country.
In line with this, Indian companies have finalized agreements with Saudi Arabian and
Russian companies for the annual supply of about 31 LMT and 26.50 LMT of
DAP/NPKs respectively to India in this year.
For Muriate of Potash (MOP), Indian companies have finalized agreements for the
supply of 4.80 LMT this year, sourced from Russia, Germany and Turkmenistan.
Besides, in order to strengthen the country's Urea supply, a Long-Term Arrangement
(LTA) is made between Rashtriya Chemicals and Fertilizers Limited (RCF) and OQ
Trading, Oman, for the supply of Urea for the period from August 2026 to February
2031.
******ANNEXURE A
Annexure referred to in reply of part (a) of Lok Sabha Unstarred Question No. 3380 for answering on 07.08.2026
STATE WISE REQUIREMENT, AVAILABILITY & DBT SALES OF UREA & DAP FROM 2023-24 TO 2025-26
Fig. in LMT
2023-24 2024-25 2025-26
UREA DAP UREA DAP UREA DAP
S.No State
Requireme Availabili DBT Requirem Availabili DBT Requirem Availabili DBT Require Availabili DBT Require Availabili DBT Requirem Availabili DBT
nt ty Sales ent ty Sales ent ty Sales ment ty Sales ment ty Sales ent ty Sales
Andaman and
1 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Nicobar Islands
2 Andhra Pradesh 15.73 17.89 14.99 4.13 4.86 4.20 15.90 18.68 15.70 4.30 4.80 4.34 15.60 19.22 17.06 4.80 6.32 5.45
Arunachal
3 0.01 0.01 0.01 0.00 0.00 0.00 0.01 0.01 0.01 0.00 0.00 0.00 0.01 0.02 0.01 0.00 0.00 0.00
Pradesh
4 Assam 3.46 4.56 3.73 0.75 0.87 0.72 3.28 4.48 4.10 0.61 0.70 0.62 3.35 5.13 4.60 0.56 0.95 0.72
5 Bihar 22.63 27.46 23.24 6.82 7.78 6.51 22.87 27.64 25.60 5.50 6.40 5.83 23.82 28.12 25.33 6.10 8.04 6.57
6 Chandigarh 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7 Chhattisgarh 8.40 11.37 8.99 3.10 5.28 4.34 8.90 12.03 10.07 4.10 4.19 3.83 10.00 12.41 9.81 4.10 4.29 3.25
Dadra and Nagar
8 0.01 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Haveli
9 Daman and Diu 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10 Delhi 0.00 0.37 0.32 0.00 0.05 0.04 0.23 0.43 0.40 0.01 0.05 0.04 0.26 0.25 0.21 0.05 0.05 0.05
11 Goa 0.03 0.02 0.02 0.01 0.01 0.01 0.02 0.02 0.02 0.01 0.00 0.00 0.02 0.02 0.02 0.01 0.00 0.00
12 Gujarat 24.71 26.78 24.30 5.86 6.71 6.29 25.60 25.82 24.23 6.25 5.84 5.42 25.02 25.95 23.99 6.30 5.82 5.32
13 Haryana 20.63 24.86 21.77 5.60 6.29 5.83 21.50 25.32 22.65 5.80 5.49 5.34 21.67 26.08 23.20 5.53 6.10 5.46
14 Himachal Pradesh 0.68 0.82 0.68 0.01 0.01 0.01 0.71 0.81 0.65 0.01 0.04 0.03 0.66 0.94 0.79 0.02 0.05 0.05
Jammu and
15 1.40 2.01 1.45 0.55 0.59 0.44 1.48 2.05 1.36 0.49 0.58 0.43 1.46 2.24 1.60 0.46 0.61 0.43
kashmir
16 Jharkhand 2.47 3.74 3.04 1.02 1.06 0.94 2.65 4.11 3.73 0.90 0.87 0.84 2.90 3.73 3.22 0.80 1.13 0.93
17 Karnataka 16.10 21.02 15.65 5.90 8.13 6.42 17.25 22.63 19.17 5.64 6.55 5.86 18.77 21.55 18.85 5.98 7.79 6.09
18 Kerala 1.19 1.13 0.96 0.20 0.18 0.16 1.11 1.37 1.15 0.17 0.21 0.20 1.14 1.30 1.14 0.20 0.31 0.22
19 Lakshadweep 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
20 Madhya Pradesh 33.46 41.73 34.37 14.22 17.81 15.50 35.38 42.43 38.09 16.57 12.70 11.66 40.42 47.16 42.43 15.00 13.09 11.47
21 Maharashtra 23.74 31.06 23.48 7.00 8.93 7.36 23.73 32.72 26.41 7.50 7.13 6.47 26.77 32.37 27.27 7.20 8.06 5.81
22 Manipur 0.30 0.26 0.25 0.04 0.01 0.01 0.25 0.16 0.14 0.03 0.03 0.02 0.20 0.24 0.19 0.03 0.05 0.04
23 Meghalaya 0.02 0.05 0.04 0.00 0.00 0.00 0.04 0.04 0.04 0.01 0.00 0.00 0.03 0.03 0.03 0.00 0.00 0.00
24 Mizoram 0.07 0.15 0.13 0.01 0.00 0.00 0.08 0.25 0.20 0.01 0.00 0.00 0.07 0.11 0.11 0.01 0.00 0.00
25 Nagaland 0.00 0.01 0.01 0.00 0.00 0.00 0.00 0.01 0.01 0.00 0.00 0.00 0.01 0.02 0.02 0.00 0.00 0.00
26 Odisha 5.46 7.70 5.84 2.33 3.12 2.74 6.05 8.15 6.67 2.86 2.83 2.56 6.20 8.94 7.26 2.75 3.42 2.78
27 Puducherry 0.16 0.15 0.13 0.02 0.01 0.01 0.16 0.16 0.15 0.01 0.02 0.02 0.15 0.15 0.14 0.02 0.02 0.01
28 Punjab 29.48 37.35 30.68 8.00 8.23 7.24 26.50 36.70 32.56 8.10 6.99 6.61 29.92 35.36 31.39 7.35 8.13 6.66
29 Rajasthan 24.28 29.23 25.39 8.95 9.80 9.37 26.20 29.43 26.40 8.50 7.11 6.90 25.52 31.94 28.05 8.43 8.61 7.80
30 Sikkim 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
31 Tamil Nadu 10.23 11.86 10.11 2.95 3.22 2.71 10.91 12.61 10.92 2.70 2.98 2.56 10.87 12.80 11.43 2.95 3.46 2.89
32 Telangana 18.94 23.77 19.03 3.80 4.34 3.68 20.20 22.15 20.08 3.90 3.91 3.64 20.20 21.80 20.94 3.85 4.92 4.38
33 Tripura 0.24 0.26 0.14 0.05 0.04 0.03 0.18 0.24 0.17 0.04 0.03 0.02 0.18 0.24 0.17 0.03 0.05 0.03
34 Uttarakhand 1.84 2.67 2.31 0.35 0.49 0.38 2.03 2.60 2.31 0.30 0.52 0.40 2.01 2.49 2.21 0.30 0.67 0.48
35 Uttar Pradesh 76.15 91.83 74.53 24.50 25.76 21.61 77.00 91.72 79.18 24.05 21.55 19.51 79.92 91.75 80.37 24.00 25.30 20.25
36 West Bengal 14.32 17.34 12.20 4.02 3.83 3.20 13.80 19.05 15.77 3.55 3.62 3.12 14.30 18.43 14.76 3.59 4.47 3.65
All India 356.08 437.47 357.81 110.18 127.42 109.73 364.01 443.83 387.92 111.92 105.14 96.29 381.45 450.79 396.60 110.42 121.72 100.80
1. Primary Indicator of comfortable availability: Availability > Requirement
2. Secondary Indicator of comfortable availability: Availability > DBT SalesAnnexure-B
Annexure referred to in reply of part (b) of Lok Sabha Unstarred Question No. 3380 for answering on 07.08.2026
Cumulative Statement from April 26 to July 26 (as on 31.07.2026)
Action taken by the State Government to check black marketing, hoarding, quality check, diversion etc during the Kharif season from April 2026 to July 2026 as on date (31.07.2026)
Black Marketing Hoarding Sub Standard Quality Diversion Quantity Total
of
No
material
of No. of
Show No. of Show No. of Show No. of Show No. of Convicti seized Show
No. of FIR FIR FIR FIR arre licenses
cause licenses cause licenses cause licenses cause licenses on with (in terms cause FIR
States Inspectio register register register register st cancelle
notice cancelled/sus notice cancelled/sus notice cancelled/s notice cancelled/s details* of Bag) notice registered
ns /raids ed ed ed ed mad d/suspe
issued pended issued pended issued uspended issued uspended and grade issued
e nded
of
fertilizer
Andaman &
Nicobar 32 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 0 0
Islands
Andhra
5460 7 13 0 95 73 4 45 0 0 0 0 0 NIL 0 0 147 86 4
Pradesh
Arunachal
0 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 0 0
Pradesh
Assam 3327 7 0 0 6 0 0 1 0 0 4 4 0 NIL 0 0 18 4 0
Bihar 18022 718 686 63 1 149 15 0 0 0 0 0 0 NIL 0 0 719 835 78
Chhattisgarh 5486 209 48 6 37 10 2 76 0 1 0 0 1 NIL 0 30029 322 58 10
Dadar & Nagar 0 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 0 0
Delhi 150 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 0 0
Goa 20 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 0 0
Gujarat 7822 39 0 2 4 5 0 17 0 8 2 0 7 NIL 0 0 62 5 17
Haryana 494 8 7 0 22 31 6 9 6 0 3 6 2 NIL 0 0 42 50 8
Himachal
56 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 0 0
Pradesh
Jammu &
9226 0 0 0 0 0 0 0 0 0 0 0 1 NIL 0 1562 0 0 1
Kashmir
Jharkhand 727 14 0 0 31 2 0 0 1 0 0 0 1 NIL 0 0 45 3 1
Karnataka 17137 2132 2 0 0 0 0 78 0 0 5 0 7 NIL 0 4424 2215 2 7
Kerala 651 0 0 0 0 0 0 15 0 0 4 0 2 NIL 0 2272 19 0 2
Madhya
1021 0 0 4 0 0 0 0 0 9 23 22 0 NIL 0 0 23 22 13
Pradesh
Maharashtra 42353 850 575 19 728 222 1 563 426 40 16 20 7 NIL 0 0 2157 1243 67
Manipur 61 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 0 0
Meghalaya 330 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 0 0
Mizoram 101 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 0 0
Nagaland 102 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 0 0
Odisha 10318 0 2 0 0 0 1 5 2 1 0 0 0 NIL 0 246 5 4 2
Puducherry 39 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0 0 0
Punjab 1912 10 0 0 0 0 0 57 8 4 49 0 8 NIL 0 0 116 8 12
Rajasthan 8450 712 22 2 139 28 6 126 0 1 167 1 6 NIL 2 5058 1144 51 15
Tamilnadu 5868 8 0 0 139 0 6 221 0 0 118 0 2 NIL 0 290 486 0 8
Telangana 11658 28 9 6 0 0 0 0 2 0 3 2 1 NIL 0 0 31 13 7
Tripura 1050 0 0 0 184 0 0 0 0 0 0 0 0 NIL 0 0 184 0 0
Uttar Pradesh 11181 1092 363 26 47 58 2 87 69 5 23 58 8 NIL 0 3826 1249 548 41
Uttarakhand 376 1 0 1 0 0 0 1 1 0 0 0 0 NIL 0 0 2 1 1
West Bengal 16661 5 2 0 276 16 0 42 0 0 0 0 0 NIL 0 0 323 18 0
Total 180091 5840 1729 129 1709 594 43 1343 515 69 417 113 53 0 2 47707 9309 2951 294
* - Details to be submitted- case number, year of FIR and year of filing of case and date of order
Above data has been compiled as reported by states