Question : Urea Import

Will the Minister of CHEMICALS & FERTILIZERS be pleased to state:

(a) the quantum of urea imported by India during the last three years along with the estimated quantum of urea likely to be imported and the funds earmarked for the purpose during 2017-18;

(b) whether the Government has any plan to reduce the consumption of urea in the country, if so, the details thereof and the reasons therefor;

(c) whether the Government also proposes to bring urea bags in 45 kg instead of 50 kg, if so, the details thereof and the reasons therefor; and

(d) the steps taken by the Government to increase urea production including revival of closed urea manufacturing plants in the country?

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


STATEMENT REFERRED TO IN REPLY TO PART (A) TO (D) OF THE LOK SABHA STARRED QUESTION NO. *35 FOR REPLY ON 18.07.2017 REGARDING “UREA IMPORT”.

(a): The quantum of urea imported during the last three years are as below:
Qty in Lakh MT

Year From OMIFCO Through STE Total
2014-15 14.63 72.86 87.49
2015-16 20.78 63.96 84.74
2016-17 20.02 34.79 54.81

The quantity of urea likely to be imported during the current year may remain at last year’s level i.e. 55 Lakh MT, if the requirement remains constant at last year’s level. The funds earmarked for this purpose is Rs.14,000 crore during 2017-18.

(b) & (c): Subsequent to introduction of Neem coating of urea, it has been reported from the field that this initiative has been well received by farmers. One of the primary benefits of Neem coating is that due to slow release of the nitrogen, the consumption of neem coated urea reduces as compared to uncoated urea. Further, since farmers mostly assess the requirement of urea in terms of bags for agriculture purpose, it is felt that if the urea is made available in 45 Kg bags instead of 50 Kg, the consumption of urea may further come down which will also lead to balanced fertilization and also increase the yield in the range of 7 to 12% in different crops. This proposal is currently under examination in the Department.

(d): The Government has notified New Investment Policy- 2012 on 2nd January, 2013 and its amendment on 7th October, 2014 to facilitate fresh investment in urea sector and to make India self-sufficient in the urea. The Government of India has also notified the New Urea Policy (NUP)-2015 on 25th May, 2015 for existing 25 gas based urea units with the objectives of maximizing indigenous urea production; promoting energy efficiency in urea production; and rationalizing subsidy burden on the government. NUP-2015 has led to additional production of approximately 20 LMT as compared to 2014-15, from the existing gas based urea plants and the total production of urea during the year 2015-16 was 244.5 LMT, i.e. the highest ever urea production in the country. The indigenous production during 2016-17 was 242.01 LMT.

Government of India has also taken the lead in augmenting production of urea in the country by reviving five old urea plants of FCIL/HFCL at Ramagundam, Barauni, Sindri, Gorakhpur and Talcher by setting new urea plants of 1.27 million MT each.
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