MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF STATISTICS AND PROGRAMME
IMPLEMENTATION AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SHRI SRIKANT KUMAR JENA)
(a) to (d): Urea is the only fertilizer which is under partial movement and distribution
control of the Government. All other fertilizers viz. DAP, MOP, SSP 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. Department of Fertilisers gives
Statewise/monthwise supply plan indicated by manufacturers/importers of these fertilizers as
per the requirement and ensures availability through the instrument of subsidy. The
availability of these P&K 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 State-wise demand (Requirement) and
supply (Availability) of major fertilizers namely Urea, MOP and Phosphatic fertilisers
(DAP+NPK) including Maharashtra during the current year 2011-12 (April`11 to October`12) is
annexed at `A`. As can be seen, the availability of urea is adequate. Similarly, the
availability of phosphatic fertilisers i.e. DAP/NPK during the year 2011-12 (April`11 to
October`11) has been adequate throughout the country. There is tightness in availability of MOP
during current year. There is no viable source of Potash in the country as such the entire demand of MOP is met imports.
During the current year upto the month of July, contracting for import of MOP not be
materialized due to substantial increase of prices and cartelization by MOP produc the
International market. The contracting of MOP took place only in the month of August., result,
MOP availability for direct application as well as for indigenous production of Nf fertilizers
is comfortable in Rabi`11-12. Department of Fertilizers is in continuous touch with officials
of State Government of Maharashtra through weekly video conference.
Further, the following steps are being taken to make adequate availability of fertilizers in
the country:
i) The movement of all major subsidized fertilizers is being monitored throughout the
country by an on-line web based monitoring system (www.urvarak.co.in) also called as
Fertiliser Monitoring System (FMS);
ii) The gap between requirement and indigenous availability of Urea is met through imports;
iii) The state governments have been advised to instruct the State Institutional agencies to
coordinate with manufacturers and importers of fertilizers for streamlining the supplies;
iv) The Government has introduced Nutrient Based Subsidy (NBS) Policy in respect of Phosphatic
& Potassic fertilizers w.e.f. 1.4.2010. Under the NBS, State Governments have to play more
proactive role to co-ordinate with the manufacturers/importers to tie up supplies of
fertilizers as per the requirement of states;
v) Department of Fertilizers and Department of Agriculture & Cooperation are jointly reviewing
fertilizer availability with State Agriculture department through Video Conferences every week.
The corrective actions, if required, are taken immediately to avoid any hardships to farmers;
vi) Under NBS, Fertilizer companies are required to print Maximum Retail Price (MRP) along with
applicable subsidy on the fertilizer bags clearly. Any sale above the printed net retail price
will be punishable under the EC Act.;
vii) Department of Fertilisers is having constant interaction with Ministry of Petroleum &
Natural Gas, GAIL and other prospective suppliers of NG/LNG so that gas requirement of the
fertilizers industry is met;
viii) Government is always encouraging production of urea in the country to achieve
self-sufficiency. The Government has announced a new policy on 4th September, 2008 to attract
new investments. The policy is based on import Parity Price (IPP) benchmark with suitable floor
& ceiling prices aiming to revamp, expansion, revival of existing urea units and setting up of
Greenfield projects. 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; and
ix) All possible steps are taken by the Department of Fertilisers to match the availability of
fertilizers with the assessed requirement.
(e): Urea is the only fertilizer which is under partial movement and distribution control of
the Government. No discrepancies in the distribution of urea in the country particularly in
Haryana, Madhya Pradesh, West Bengal and Gujarat. The requirement and availability of urea in
Haryana, Madhya Pradesh, West Bengal and Gujarat during the current year 2011-12 (April`11 to
October111) are as under:
(Qty.in `000 MTs)
2011-12 (April`11 to October`11)
SI.No. Fertilizer State Requirement Availability
1 UREA Haryana 995.00 1022.81
2 Madhya 871.47 918.90 Pradesh
3 West Bengal 595.00 589.73
4 Gujarat 1310.00 1280.58
As can be seen, the availability of urea is comfortable. Department of Fertilizers and
Department of Agriculture & Cooperation are jointly reviewing fertilizer availability with
State Agriculture department through Video Conferencing every week. The corrective actions,
if required, are taken immediately to avoid any local shortages.
