Question : Price of Fertilizers in International Market

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

(a) whether the selling prices of chemical fertilizers in the international market has come down as compared to, that of the last year;

(b) if so, the details thereof and the extent to which these prices have come down;

(c) whether the imported raw material needed for producing chemical fertilizers in the country has also become cheaper;

(d) if so, the fall registered in the average prices of the said raw materials; and

(e) the estimated percentage of fall in the prices of chemical fertilizers in the
country?

MINISTER OF STATES IN THE MINISTRY OF CHEMICALS AND FERTILIZERS

(SHRI HANSRAJ GANGARAM AHIR)

(a) & (b) : Import of urea for direct agriculture use is made on Government account to bridge the gap between assessed demand and estimated production. The prices of urea in the international market has shown a downward trend during the year 2015-16 over the year 2014-15. The weighted average CFR price of urea imported on Government account during the year 2015-16 was US$279.02 per MT as against the weighted average CFR price of US$303.94 per MT in the year 2014-15. Imports of all other fertilisers is allowed freely under Open General License (OGL) and importers are free to import these fertilisers as per their commercial decision. Government do not maintain the prices of these fertilisers.

(c) & (d) : Government do not maintain the prices of raw materials.

(e) : The Maximum Retail Price (MRP) of urea in the country is under statutory price control. The prevailing prices of urea in the international market do not have any impact on the MRP of urea in the country. Government is paying subsidy on P&K fertilisers under the Nutrient Based Subsidy (NBS) Scheme. The MRPs of P&K fertilisers are fixed by the fertiliser companies as per marketing dynamics at reasonable level.