Question : Import of Fertilizers

(a) the details of various fertilizers being imported into the country through its various ports during the last three years;

(b) the agencies involved in importing fertilizers from various countries through various ports of the country during the said period;

(c) the rationale behind selecting the ports and foreign supply for import of the fertilizers in the country; and

(d) the rationale and planning of supply of fertilizers in the country by fertilizer companies along with the justification on logistic advantage of these supply plans of the fertilizer companies?

MINISTER OF CHEMICALS AND FERTILIZERS

( D.V. SADANANDA GOWDA)

(a): Sir,the quantum of fertilizers imported by Government during the last three years is as under:

Import of Fertilizers

<Qty in LMT>
Year Urea DAP* MOP* NPK*
2016-17 54.81 43.85 37.36 5.21
2017-18 59.75 42.17 47.36 4.99
2018-19 74.81 66.02 42.14 5.46
*Based on the information received from various companies

(b): Urea is under statutory price control and for direct agriculture use its import on Government account is permitted through State Trading Enterprises (STEs) namely MMTC Limited (MMTC), State Trading Corporation Limited (STC) and Rashtriya Chemicals & Fertilizers (RCF) under the Foreign Trade Policy of the Government. M/s IPL which was also a State Trading Enterprise (STE) has been de-listed from the list of STEs by DGFT with effect from 05.10.2018. Government is also importing urea from Oman India Fertiliser Company (OMIFCO) under a Long Term Urea Off Take Agreement (UOTA) between GOI & OMIFCO. The project is promoted by Indian Farmers and Fertilizers Cooperative Ltd. (IFFCO) and Krishak Bharati Cooperative Ltd. (KRIBHCO) from India side and Oman Oil Company from the Omani side. IFFCO and KRIBHCO are importing Urea from OMIFCO, Oman on FOB basis, being Joint Venture partners in the OMIFCO joint venture company under UOTA between Government of India and OMIFCO, Oman and distributing the OMIFCO urea to the States as per supply plan of Government of India.Import of fertilizers (other than Urea) is free and on private account under OGL, commonly known as Open General Licence (OGL). Various companies import these fertilizers as per their commercial judgment.
(c) & (d): The month-wise demand is assessed and projected by the Department of Agriculture & Co-operation and Farmers Welfare (DAC&FW) in consultation with the State Governments before commencement of each cropping season. On the basis of month-wise & State-wise projection given by DAC&FW, Department of Fertilizers allocates sufficient/ adequate quantities of fertilizers to States by issuing monthly agreed supply plan as per the Fertilizer (Movement Control) Order, 1973. The gap between demand (requirement) and production is met through import. Import of Urea is done either through designated STEs on government account as per the MoU signed between Department of fertilizers and STEs or under the long term agreement of OMIFCO. The import of other fertilizers is under OGL. The ports are decided based upon the various options given by the STE and the requirement of different regions. The supply of fertilizers in the country is done by the fertilizer companies as per the agreed supply plan so as to ensure adequate and timely availability of fertilizers to each nook and corner. The State Governments are regularly advised to coordinate with manufacturers and importers of fertilizers for streamlining the supplies through timely placement of indents.

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