(a) whether the Government has envisaged the use of fertilizers
by formulating different policies for various chemical fertilizers
in the country;
(b) if so, the facts in this regard and the details of different
policies formulated for various chemicals fertilizers so far;
(c) the reasons for formulating different policies;
(d) whether the sale price of all the fertilizers in the country
has increased during the last three years; and
(e) if so, the details thereof?
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS
AND PROGRAMME IMPLEMENTATION AND MINISTER OF STATE IN THE MINISTRY
OF CHEMICALS AND FERTILIZERS (SHRI SRIKANT KUMAR JENA)
(a) & (b): There are two different policies for P&K fertilizers and
for Urea. In case of P&K fertilizers, Nutrient Based Subsidy (NBS)
Policy is being implemented w.e.f. 1.4.2010. Under the policy a fixed
subsidy is announced on annual basis on different grades of subsidized
fertilizers. Presently, 25 grades of P&K fertilizers are covered under
this policy. The Maximum Retail Price (MRP) is fixed by the companies.
So far as policy relating to urea is concerned, the Government has
formulated the pricing policy (Stage-III) of new pricing scheme (NPS)
for urea manufacturing units which is effective from 1.10.2006. This
was formulated with the aim of maximizing urea production from the urea
units including through conversion of non-gas based units to gas,
incentivizing additional urea production and encourage investment in
Joint Venture Projects abroad. The policy also aimed at establishing
a more efficient urea distribution and movement system in order to
ensure availability of urea in the remotest corners of the country.
The Government had notified on 4th September, 2008, a new investment
policy for urea sector and long term offtake of urea from Joint Venture
abroad to attract investment in this sector. The New Investment Policy
aims at revamp, expansion, revival of existing urea units and setting up
of Greenfield/Brownfield projects.
(c) India is totally dependent on imports in Potash sector as there
is known reserve of potash in the country. India has very little reserves
of rock phosphate that too of very low quality. Overall P&K Sector is
more of less totally dependent on imports in the form of finished fertilizers
or its raw material. In case of Urea, the raw materials are available in
the country. India meets approximately 75% of its requirement through
indigenous production. Therefore, P&K fertilizers and Urea requires
different treatment and hence there are different policies for these
fertilizers.
(d) & (e): The MRP of different fertilizers for the last 3 years
quarter-wise is placed at Annexure.
It is seen that MRP of P&K fertilizers has marginally increased in the
year 2010-11 as compared to 2009-10. In the year 2011-12 in spite of
increase in subsidy rates on P&K fertilizers their prices increased
substantially due to increase international prices of P&K fertilizers
and its raw materials and due to depreciation of Indian Rupee.