Question : TASK FORCE ON FERTILIZER INDUSTRY



(a) whether the Government have constituted a high level task force on the fertilizer industry;

(b) if so, the objectives and composition of said task force;

(c) whether liberalisation and World Trade Organisation agreements have adversely affected the domestic fertilizer industry; and

(d) if so, the steps taken by the Government to protect the domestic fertilizer industry?

Answer given by the minister


THE MINISTER OF CHEMICALS AND FERTILIZERS ( SHRI SURESH P. PRABHU )

(a) to (d): A Statement is laid on the Table of the House

STATEMENT REFERRED TO IN REPLY TO PART (a) to (d) OF LOK SABHA STARRED QUESTION NO. 78 FOR ANSWER ON 27.07.2000 REGARDING TASK FORCE ON FERTILIZER INDUSTRY

(a) & (b): Yes, Sir; the objective of setting up of Task Force is to study and recommend the bound rate of urea which is an unbound item and on which quantitative restrictions (QRs) have to be lifted by 1.4.2001. The Task Force will also look into the bound rate of DAP and recommend the revision in this, if necessary. The composition of the Task Force is given in the Annexure.

(c) & (d): The liberalization in Fertilizer Sector began in 1992-93 when potassic and phosphatic fertilizers were decontrolled and their imports were de-canalized. Since then, QRs have been removed on several other fertilizers and there have been no reports of adverse impact so far on the indigenous fertilizer industry on this account. The removal of quantitative restrictions on urea will have major implications as it is a controlled fertilizer and its imports are currently made on Government account. The Task Force will study the implications arising from abolition of QRs and its recommendations will form the basis of further action such as levying of tariffs for protection of indigenous industry. The Task Force will also study the bound rate for DAP which is 5% currently and recommend changes, if any.

ANNEXURE

ANNEXURE REFERRED TO IN REPLY TO PART (a) & (b) OF LOK SABHA STARRED QUESTION NO. 78 FOR ANSWER ON 27.07.2000 REGARDING TASK FORCE ON FERTILIZER INDUSTRY

COMPOSITION OF THE TASK FOPRCE RELATING TO WTO MATTERS ON FERTILIZER SECTOR

1. Shri. A.V. Gokak, Secretary, Department of Fertilizers - Chairman

2. Dr. V.S.Seshadri, Joint Secretary, Ministry of Commerce

3. Shri. Shivraj Singh, Joint Secretary, Ministry of Petroleum & Natural Gas

4. Shri. R.K.Vaish, Joint Secretary, Department of Agriculture & Cooperation

5. Shri. Anwarul Hoda, Indian Council for Research on International Economic Relation 6. Shri.Tarun Das, Director General, Confederation of Indian Industry (CII)

7 Shri. Bibek Debroy , Director(Research), Rajiv Gandhi Foundation

8. Shri.U.S.Awasthi, Managing Director, IFFCO

9. Shri.P.V. Bhide, Managing Director, Godavari Fertilizers & Chemicals Ltd. 10. Shri.Pratap Narayan, Director General, Fertilizer Association of India 11. Shri Sanjaya Das, Joint Commissioner, Department of Fertilizers