Question : DEMAND AND SUPPLY OF FERTILIZERS



(a) whether there is a huge gap between the demand and supply of various fertilizers in the country;

(b) if so, the details thereof, and the reasons therefor;

(c) the average demand and supply of fertilizers in various States including Uttar Pradesh during the rabi season;

(d) the break-up of nitrogen, phosphorous, potash and other fertilizers allocated to States for the rabi season, State-wise;

(e) the steps taken to prevent black marketing of fertilizers due to short supply; and

(f) the efforts being made by the Union Government to bridge the gap between demand and supply of fertilizers?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI SRIKANT KUMAR JENA)

(a) to (f): A statement is laid on the table of the House.

Statement referred to in reply to parts (a) to (f) of the Lok Sabha Starred Question No. 109 to be answered on 26.11.2009.

(a) & (b): No, Sir. Urea is the only fertilizer which is under partial movement and distribution control of the Government. All other fertilizers viz. DAP, MOP, and NPK etc. are decontrolled/ de-canalized since 1992. The availability of Phosphatic and Potassic fertilizers is decided by the market forces of demand and supply. Union Government monitors availability of fertilizers at State level and State Governments are responsible for further distribution within the State.

The demand and supply (availability) of major fertilizers namely Urea, Di-ammonium Phosphate (DAP), Muriate of Potash (MOP) and Complex (NPK) fertilizers in the country during the current year 2009-10 (April`09 to October`09) are as under:

(`Qty. in `LMT`)
Year	Particulars	Urea	DAP	MOP	NPK
2009-10 Demand/ Assessed requirement 159.69 70.46 26.53 56.97 Supply (Availability) 149.80 74.04 23.84 45.26 Sales 142.36 72.66 22.71 43.52

(c) & (d): The State-wise cumulative requirement (demand), availability and sales of Urea, DAP, MOP and Complex fertilizers during the current Rabi`2009-10 (October`09 to November`09) is annexed. As can be seen, the availability of urea, DAP and MOP has been adequate. However, there has been a little tightness in availability of complex (NPK) fertilizers because of low level of indigenous production and also as these can not be imported.

(e): The State Governments, as the enforcement agencies, are adequately empowered under Fertiliser Control Order, 1985 to take appropriate action against any offender who indulges in any kind of malpractices including black marketing.

(f): The steps taken to ensure supplies of fertilizers as per demand are as under:

i) The gap between requirement and indigenous availability of Urea is met through imports;

ii) The country is almost fully dependent on imports to meet the requirements of phosphatic and potassic fertilizers. Government has taken initiatives to encourage indigenous production in P&K sector by allowing import parity price to the indigenous manufacturers of DAP. Government has also reduced the custom duty on phosphoric acid from 5% to 2% to enable indigenous manufacturers of P&K fertilizers to acquire this important input at reasonable price. Government is also encouraging private sector and public sector companies to explore the possibilities for joint ventures abroad to ensure uninterrupted supply of fertilizers inputs to P&K sector.

iii) Department of Fertilizers operates Bufffer Stock of Urea, DAP & MOP through State Institutional Agencies/ fertilizer companies in major fertilizer consuming States to the tune of 6.25 LMT, 3.50 LMT and 1.00 LMT respectively;
Figures in 000`MTs	RABI 2009-10
Cumulative Requirement, Availability and Sales during Rabi 09-10 (October`09 - November`09)
UREA
States Cumulative Comulative Cumulative Sales Requirement Availability upto 23.11.2009 as on 23.11.09
Andhra Pradesh 580.00 477.61 339.50 Karnataka 205.00 247.51 162.78 Kerala 30.50 43.09 24.86 Tamil Nadu 315.00 233.37 202.83 Gujarat 370.00 277.74 202.94 Madhya Pradesh 500.31 403.68 258.03 Chhattisgarh 15.50 21.33 12.09 Maharashtra 434.00 304.01 200.23 Rajasthan 368.00 263.90 173.21 Haryana 410.00 322.64 211.76 Punjab 570.00 412.02 246.91 Jammu & Kashmir 35.70 5.59 1.39 Uttar Pradesh 800.00 828.75 487.28 Uttarakhand 18.00 28.65 8.57 Bihar 310.00 260.67 200.96 Jharkhand 25.00 23.62 18.25 Orissa 40.00 48.26 16.41 West Bengal 215.77 196.75 114.01 Assam 30.80 29.21 21.48 All India 5303.57 4443.86 2914.75

Figures in 000`MTs RABI 2009-10
Cumulative Requirement, Availability and Sales during Rabi 09-10
( October`09 - November`09) DAP States Cumulative Comulative Cumulative Sales Requirement Availability upto 23.11.2009 on 23.11.09
Andhra Pradesh 300.00 230.07 186.49 Karnataka 160.00 200.85 184.68 Kerala 8.26 5.97 3.78 Tamil Nadu 131.00 57.57 50.10 Gujarat 260.00 178.95 183.07 Madhya Pradesh 354.15 350.49 275.74 Chhattisgarh 18.90 56.01 59.01 Maharashtra 339.70 559.79 528.19 Rajasthan 245.00 222.20 175.52 Haryana 350.00 310.54 300.38 Punjab 450.00 475.73 465.55 Jammu & Kashmir 29.25 11.44 8.04 Uttar Pradesh 750.00 660.28 498.48 Uttarakhand 11.00 18.81 11.49 Bihar 160.00 106.54 77.35 Jharkhand 25.00 22.93 16.80 Orissa 13.48 44.44 47.23 West Bengal 87.40 89.91 70.62 Assam 4.40 5.11 2.58 All India 3706.28 3611.22 3148.79

Figures in 000`MTs RABI 2009-10 Cumulative Requirement, Availability and Sales during Rabi 09-10 (October`09 - November`09)
MOP
States Cumulative Comulative Cumulative Sales Requirement Availability upto 23.11.2009 as on 23.11.09
Andhra Pradesh 135.00 136.59 90.89 Karnataka 90.00 109.46 63.76 Kerala 35.00 40.82 29.93 Tamil Nadu 130.00 113.06 84.76 Gujarat 51.00 56.65 52.59 Madhya Pradesh 39.65 26.56 14.82 Chhattisgarh 4.45 4.22 1.62 Maharashtra 101.90 113.70 62.76 Rajasthan 10.00 7.10 4.14 Haryana 15.00 19.44 18.54 Punjab 25.00 23.97 10.54 Jammu & Kashmir 9.67 1.83 1.82 Uttar Pradesh 90.00 92.07 55.26 Uttarakhand 4.00 2.63 2.63 Bihar 75.00 43.61 30.66 Jharkhand 4.50 1.75 1.38 Orissa 12.21 12.34 8.17 West Bengal 97.40 118.22 72.55 Assam 15.40 10.95 5.36 All India 954.84 936.06 613.43

Figures in 000`MTs RABI 2009-10
Cumulative Requirement, Availability and Sales during Rabi 09-10 ( October`09 - November`09)
NPK States Cumulative Comulative Cumulative Sales Requirement Availability upto 23.11.2009 as on 23.11.09
Andhra Pradesh 400.00 346.15 216.68 Karnataka 225.00 146.41 111.36 Kerala 37.50 40.99 25.94 Tamil Nadu 88.00 121.77 87.32 Gujarat 106.80 107.46 67.96 Madhya Pradesh 114.51 93.80 59.75 Chhattisgarh 14.45 14.69 7.77 Maharashtra 165.00 148.55 98.88 Rajasthan 41.80 36.43 23.31 Haryana 10.00 19.77 15.67 Punjab 25.00 31.07 22.45 Uttar Pradesh 250.00 266.60 235.33 Uttarakhand 12.50 11.93 8.79 Bihar 105.00 54.22 38.68 Jharkhand 16.00 18.94 15.70 Orissa 19.10 19.62 7.55 West Bengal 214.80 160.80 124.87 Assam 0.00 0.00 0.00 All India 1872.58 1651.52 1174.06