Question : IMPORT OF FERTILIZERS



(a) whether the Government has imported Phos. Acid and Muriate of Potash during each of the last three years and the current financial year;

(b) if so, the details thereof along with rates and name of the countries;

(c) the subsidy provided to each of the importer company during the said period;

(d) whether the farmers also get the benefit of the subsidy on these fertilizers; and

(e) if so, the details thereof?

Answer given by the minister

THE MINISTER OF CHEMICALS AND FERTILIZERS AND MINISTER OF STEEL (SHRI RAM VILAS PASWAN)

(a) to (e): A statement is laid on the Table of the House.

Statement referred to in reply to parts (a) to (e) of Lok Sabha Starred Question No. 39 to be answered on 06.07.2004.

(a) & (b) The import of phosphoric acid and Muriate of Potash (MOP) is decanalised and the Government does not import fertilizers and their inputs except urea. The importers and fertilizer manufacturers import phosphoric acid and Muriate of Potash directly. The import prices for phosphoric acid and MOP are negotiated with the suppliers normally for entire year.

M/s. Indian Potash Ltd. (IPL) is the major importer of MOP, which imports almost 60% of the entire quantity. Normally, IPL negotiates the price of MOP with the international suppliers during the beginning of financial year. On the other hand the price of phosphoric acid is normally negotiated by a group of P&K fertilizer manufacturers in the beginning of the financial year.

The details of country wise import and prices negotiated during the last three years for phosphoric acid and MOP are placed at Annexure-I. For the current year, IPL has finalised C&F price of MOP at $180 per MT with 180 days credit, till the supplies up to October 2004. The C&F price negotiated by the group of manufacturers of P&K fertilizers for the year 2004-05 for phosphoric acid is $402.75 per MT (for countries having import duty of 5%) and $398.7 (for countries having import duty of 4%) with 120 days credit.

(c) The phosphoric acid is used for manufacturing of DAP & complex fertilizers. On the other hand, MOP is used for direct application as well as in the manufacturing of NPK fertilizers. Government of India provides concession/ subsidy on the sales of finished fertilizers namely DAP, MOP, and complex fertilizers. The details of the concession/ subsidy paid during the last three years to the fertilizer companies on the sales of these fertilizers for agricultural use is placed at annexure II.

(d) & (e) Yes Sir, the farmers get the benefit of subsidy as the selling price of these fertilizers indicated by the Government is lower than the normative delivered cost. The Government is paying the difference between normative delivered cost & the selling price as concession/ subsidy to the manufacturers/ importers.

Annexure-I

Details of country wise import of MOP during the last three years

(In thousand MT)
Country 2001-02 2002-03 2003-04
Canada 175 206 451 Jordan 614 446 658 Germany 97 167 118 Israel 356 412 255 CIS 1568 1372 1098
Total 2810 2603 2580
(Source: FAI)
Details of country wise import of Phosphoric Acid during the last three years
(In thousand MT)
Source/Country 2001-02 2002-03 2003-04
OCP/Morocco 705.0 691.6 1236.9 GCT/Tunisia 287.4 297.6 250.6 LCC Lebanon 29.7 36.5 37.7 JPMC/Jordan 134.6 299.3 308.3 Phoschem/USA 62.6 0.0 0.0 YPIEC/China 5.5 0.0 0.0 Israel 170.0 105.5 19.3 South Africa 348.1 396.1 404.1 Senegal 416.9 536.2 431.8 Others 50.6 40.6 52.3
Total 2209.9 2403.4 2741.0



Details of C&F price of MOP finalised by IPL and C&F price of phosphoric acid finalised by manufacturers of P&K fertilizers during last three years and current year

($ per MT)
Year C&F Price of MOP C&F Price of Phosphoric Acid
2001-02 120.9 348.5 2002-03 120.9 341.5 2003-04 124.4 356.0 2004-05 180.0 398.7 -402.75


Annexure II/1
Total Payment in Rs. Crores (DAP/NPK Manufacture)
Company Name 2003-04 2002-03 2001-02
IFFCO 647.43 569.18 678.70 OCFL 85.10 186.32 375.24 HLL 166.04 150.97 279.95 CFL 155.13 78.48 212.56 GFCL 182.10 156.69 223.66 FACT 122.41 154.22 208.36 M FL 116.68 81.10 211.33 GS FC (V) 161.19 171.98 168.65 ZIL 139.70 103.54 178.39 S PIC 91.53 84.14 186.71 RC F 92.76 70.51 139.12 PPL 204.05 120.43 150.80 IGCL 76.19 70.19 96.68 GSFC (S) 33.20 48.44 57.91 E.I.D. Parry 22.34 21.49 59.05 MC FL 30.13 36.99 49.24 GNVFC 38.28 22.09 44.22 GFCL (IFFCO) 8.69 0.00 0.00 DEEPAK 17.57 20.71 46.09
TOTAL 2390.52 2147.46 3366.66


Annexure II/2
Total Payment in Rs. Crores (SSP Manufacturers)
Company Name 2003-04 2002-03 2001-02
DMCC 12.70 14.79 17.47 LIBERTY 14.61 14.22 14.30 KHAITAL CHEM. 11.70 10.14 9.44 VAM 1.48 0.02 7.86 TEESTA 6.26 7.63 6.87 RAMA PHOS (U) 7.66 6.61 7.10 BEC FERT 7.17 6.28 6.07 RKRL 5.78 4.38 5.67 KHAITAN FERT 0.00 1.35 4.72 RAMA PHOS (I) 6.23 2.78 4.13 BASANT 3.46 3.40 3.17 SADHANA 1.00 0.78 3.38 SHIVA 3.98 3.88 2.94 BOHRA 4.06 7.40 2.74 MARDIA 0.29 1.61 2.38 CIOMBATORE 3.06 2.51 2.38 PHOSPHATE CO. 5.62 5.35 2.68 JAY SHREE (II) 3.63 2.53 2.02 JUBILANT 6.90 6.91 1.69 ANDHRA SUGAR 2.68 1.32 1.69 JAY SHREE (I) 3.33 3.45 1.74 PRAGATI 1.27 0.72 1.53 PRATHYUSHA 1.53 2.67 3.19 TUNGBHADRA 1.51 0.80 1.47 BHARAT FERT 0.84 1.37 1.30 SHREE ACIDS 0.00 0.44 1.02 SWASTIK 1.42 1.49 0.93 ARIHANT 2.08 2.63 1.40 KRISHNA INDUS. 1.66 1.29 0.92 RASHI FERT 0.03 0.29 0.96 SUBHODAYA 0.71 0.79 0.86 ASIAN FERT 3.86 1.82 0.80 JAIRAM 3.11 2.12 2.19 RAJLAXMI _ 0.02 0.23 0.55 GAYATRI 0.78 0.62 0.44 KHOTHARI 0.03 0.28 0.52 MAHADEO 0.31 1.61 0.32 MANGALAM 0.27 0.72 0.34 ORIRNTAL 0.01 0.07 0.27 JAY SHREE (III) 0.03 0.45 0.22 SHURVI 0.32 0.38 0.21 PRIYANKA 0.73 0.79 0.30 ARAWALI 1.67 1.29 0.29 SHRI GANPATI 0.00 0.04 0.13 MUKTESHWAR 0.11 0.27 0.15 PREM SAKHI 2.25 1.67 0.56 SHAW WALLACE 0.00 0.00 0.06 NIRMA 6.15 8.07 1.89 MPOL 0.03 0.11 0.67 SONA PHOS 0.02 0.02 0.01 SHREEJI FERT 0.00 0.02 1.66 MADIC 0.00 1.47 1.41 ASHA PHOS 0.00 0.10 0.79 MEXICAN PHOS 0.45 0.00 0.55 SARADA FERT 0.00 0.00 0.48 BEC (P) 3.28 2.99 0.06 SRINIWAS FERT 0.26 7.44 0.00 CHEMTECH FERT 1.05 0.79 0.00 MBAPL 0.16 0.91 0.00 REWATI MINERALS 0.01 0.31 0.00 IFFCO (GFCL) 34.12 16.98 0.00 TEDCO 1.58 0.55 0.00 BMFP 0.74 1.14 0.00 KASHI URVARK 0.03 0.07 0.00 SRIKRISHNA 0.00 0.07 0.00 PYRITES PHOS 0.00 0.08 0.00 BALA JI 0.30 0.01 0.00 SHREEJI PHOS 0.00 0.25 0.00 ARIHANT FERT 0.00 0.09 0.00 KHAITAN CHEM (J)4.17 0.00 0.00 NARMADA AGRO 0.16 0.00 0.00 NATRAJ ORG 0.64 0.00 0.00 MUNAK 0.09 0.00 0.00 MB (Pvt) 0.05 0.00 0.00
TOTAL 189.44 173.67 138.90

Annexure II /3
Companywise payment to importers of DAP & MOP (Rs. Crores)
SI.No. Company`s Name 2001-02 2002-03 2003-04
1 M/s Cargil India pvt Ltd 1.40 33.58 2 M/s Chambal fert & Chemical Ltd 18.06 29.97 47.97 3 M/s Coromandal fert Ltd 4.84 16.19 20.07 4 M/s deepak Fert Ltd 23.20 9.43 5.35 5 M/s Duncan Industires Ltd 24.43 8.41 3.28 6 M/s EID Perry India Ltd 0.00 8.19 17.32 7 FACT 22.49 25.61 9.51 8 GFCL 15.15 16.55 10.46 9 GNVFC 24.99 17.84 17.70 10 GSFC 0.09 0.01 0.03 11 Hindustan Lever ltd 38.24 37.95 32.27 12 IFFCO 11.94 1.44 0.56 13 Indian Potash LTD 303.36 339.70 374.26 14 Madras ferilizers Ltd 10.45 11.30 4.90 15 MMTC 8.08 12.92 3.83 16 NFCL 0.13 5.00 0.49 17 PPL 0.00 4.74 8.14 18 Rallis India Ltd 2.83 5.13 4.95 19 RCF Ltd 46.22 42.77 33.58 20 Shri Ram fert Ltd 71.82 60.25 55.50 21 SPIC 72.71 31.82 7.31 22 PCTL 3.35 10.60 23 Emmsons 0.07 0.09 24 Zuari Industries Limited 29.22 36.93 16.53 25 Indo gulf 1.72 26 MCFL 0.11 27 NFL 0.51 28 TATA 12.39
Total 731.67 736.58 719.98