Question : Urea and DAP Import

(a) the quantity and monetary value of urea and DAP imported by India from various countries between 2010 & 2020, country-wise and year-wise;

(b) the steps taken by the Government to reduce the imports of Urea and DAP;

(c) the steps being taken by the Government to nudge the farmers to slash their fertilizer usage, especially in the use of urea?

Answer given by the minister

MINISTER FOR CHEMICALS AND FERTILIZERS

(SHRI D.V.SADANANDA GOWDA)

(a): The details of Urea and DAP imported in the country through various ports of the country between 2010 & 2020, country-wise and year-wise is as per ANNEXURE-‘A’ and monetary value of Urea is as per ANNEXURE- ‘B’ respectively.

Import of fertilizers (other than urea) is free, commonly known as Open General Licence (OGL). Various companies import these fertilizers as per their commercial judgement. Government do not maintain the value of these imports.

(b): The Government had announced New Investment Policy (NIP)-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 sector.

Under NIP-2012 read with its amendment, Matix Fertilizers & Chemicals Limited (Matix) has set up a Coal Bed Methane (CBM) based Greenfield Ammonia-Urea complex at Panagarh, West Bengal. The Commercial production of Matix started on 1st October, 2017. Chambal Fertilizers & Chemicals Limited (CFCL) has also set up a Brownfield project at Gadepan, Rajasthan. The commercial production of CFCL-III started on 1st January, 2019.

These plants will add the capacity of around 12.7 LMT each to the indigenous urea production of the country which will reduce the dependency on imports.

The NBS Policy for P&K fertilizers is being implemented w.e.f. 01.04.2010 by the Department of Fertilizers. Under the said policy, a fixed amount of subsidy decided on annual basis, is provided on each grade of subsidized Phosphatic & Potassic (P&K) fertilizers depending on its Nutrient Content. As the P&K fertilizers are decontrolled, the Maximum Retail Price (MRP) is fixed by Companies as per market dynamics at reasonable level. Also, the imports of all the subsidized P&K fertilizers including DAP (excluding Ammonium Sulphate) have been placed under Open General License (OGL) in the NBS Scheme.

With the approval of Cabinet Committee on Economic Affairs (CCEA), Department of Fertilizers (DoF) has started to revive the five urea units viz. Talcher, Ramagundam, Gorakhpur, Sindri plants of FCIL and Barauni plant of HFCL with a capacity of 12.7 Lakh metric tonne each per annum capacity. Union Cabinet in its meeting held on 21.05.2015 has approved the proposal of this Department for setting up of new Brownfield Ammonia-urea complex (Namrup-IV) in the existing premises of BVFCL having capacity of 8.646 Lakh MT per annum with the available gas of 1.72 MMSCMD through a Joint Venture under Public Private Partnership (PPP) mode with equity participation of 48% (26%,11% and 11% to Oil India Limited, Government of Assam and BVFCL respectively) on nomination basis and the remaining 52% equity through competitive bidding by inviting bids from public/private entities.

(c): With regard to reduction in use of urea, it is mentioned that based on CCEA decision, vide notification dated 25th May, 2015 Department of Fertilizers had made it mandatory for all the domestic producers of urea to produce 100% as Neem Coated Urea, with the objective of promoting the balanced use of fertilizers. Entire quantity of indigenous urea and imported urea is being neem coated w.e.f. 1st September, 2015 and 1st December, 2015 respectively.

Further, based on CCEA decision, vide notification dated 4th September, 2017, the Government of India has introduced 45 kg bag of urea in place of 50 kg bag of urea in order to reduce the consumption of urea.

The Government has approved the policy on promotion of city compost which has been notified by the Department of Fertilizers on 10.02.2016 wherein Market Development Assistance (MDA) of Rs. 1500/MT in the form of subsidy has been provided for scaling up production and consumption of city compost.

The Government of India is advocating the concept of balanced and judicious use of fertilizers on soil test based recommendations. The Government of India is implementing soil Health Card scheme. Under the scheme on the basis of Soil test, the soil health cards are provided to the farmers. The soil health card provide the data on the soil fertility status of the particular land holding and also provide the appropriate dosage of fertilizer required for a particular crop.


**********



Download PDF Files