MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION AND
MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI SRIKANT KUMAR JENA)
(a): The details of the feedstock and intermediates imported by India during 2008-09 to 2011-12 for producing various
fertilizers are given in the table below:
Year Feedstock Intermediate Raw Material
LNG Ammonia Phosphoric Rock Phosphate Sulphur (MMSCMD) (Million Acid (Million (Million tonnes) (as P2O5) tonnes) tonnes) (Million tonnes)
2008-09 7.00-8.00 1.471 1.582 5.261 1.445
2009-10 7.12 1.916 2.721 5.327 1.294
2010-11 8.00 1.735 2.140 6.387 1.808
2011-12 8.26 1.726 1.906 6.37 1.242
MMSCMD – Million cubic meters per day.
(b): The international prices of raw materials of fertilizers are highly volatile and have increased in the recent years.
The international prices of various raw materials from April 2010 to October 2012 are placed at Annexure-I.
(c) to (e): The Government is implementing Nutrient Based Subsidy (NBS) Policy on Phoshpatic & Potassic (P&K) fertilizers
w.e.f. 1.4.2010 under which a fixed amount of subsidy decided on annual basis is provided on all subsidized P&K fertilizers
depending upon its nutrient content. The Maximum Retail Prices (MRP) is fixed by fertilizer companies.
The country is import dependent for P&K fertilizers both for finished fertilizers as well as their raw materials. Since the
subsidy is fixed, changes in the international prices of P&K fertilizers have an impact on the MRP of fertilizers.
The NBS rates are decided by the Government after taking into consideration all relevant factors including international
prices of P&K fertilizers and its raw materials, inventory level of P&K fertilizers & prevailing prices of fertilizers in
the country and the prevailing exchange rate. In spite of increase in the rates of subsidy in the year 2011-12, the prices
of fertilizers increased due to increase in international prices of fertilizers and its raw materials. While fixing the
subsidy rates for the year 2012-13 the international prices had softened and, therefore, the subsidy rates were also
adjusted accordingly. The recent increase in the domestic prices of fertilizers is mainly due to depreciation of Indian
Rupee.
Thus, it is seen that the price of P&K fertilizers have increased during the last two years due to fluctuation in the
international prices of P&K fertilizers, which is not under the control of the Government and on account of depreciation
of India Rupee.
The MRPs of fertilizers during 2011-12 and the current year are given in the Annexure-II.
