Question : IMPORT OF FERTILIZERS



(a) the quantity and cost of Nitrogen, Phosphate and Potash (P&K) Fertilizers imported during the last three years and till date;

(b) the cost of said fertilizers produced in the country during the said period; and

(c) the subsidy provided for import of said fertilizers and to fertilizer producing companies in the country during the said period?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS AND MINISTER OF STATE IN THE MINISTRY OF PARLIAMENTARY AFFAIRS (SHRI B. K. HANDIQUE)

(a) Fertilizers other than Urea are imported under Open General Licence (OGL).The import of urea is permitted only through State Trading Enterprises and import for direct agriculture use is made on government account. The year wise import of urea on Government account during the last three years and during the current financial year (till date) along with weighted average C&F price in US $ is given below: -



Year Qty in Lakh MT Weighted avg. C&F price in US$ per MT 2003-04 Nil - 2004-05 06.41 237.88 2005-06 07.31 258.56 2006-07 28.65 248.85 till date

Besides above, Government has also imported granular urea from Sur, Oman during the year 2005-06 & 2006-07 at a long term FOB price under Urea Off Take Agreement (UOTA). The granular urea imported from Sur, Oman during the year 2005-06 was 13.25 lakh MT at the weighted average C&F price of US$ 155.23 per MT and in 2006-07 (up to23.02.2007) 16.64 lakh MT at the weighted average price of US$169.45 per MT.

Imports of all other fertilizers are allowed freely. Importers import these fertilizers as per their commercial requirements. However, Government is paying concession on these fertilizers under Concession Scheme. The details of DAP & MOP imported during last three years and in the current year (up to 23.02.07) and average normative delivered price considered for payment of concession/subsidy on these fertilizers during the said period are as under: -

Year Imported DAP MOP Qty. in LMT Price in Qty.in LMT Price in Rs/per MT Rs./per MT

2003-04 7.34 11484 25.80 7277 2004-05 6.44 13747 34.09 10065 2005-06 24.38 15075 45.78 11049 2006-07 27.87 15107 30.40 11017

(up to 23.02.07)

(b)The average delivered prices of indigenous Urea & DAP during the last three years and in the current year is under:-

(Rupees per MT) Year Indigenous urea Indigenous DAP 2003-04 9145 11484 2004-05 9963 13747 2005-06 10363 15075 2006-07 10363 15107 Provisional

(c)The urea is imported on Government account through State Trading Enterprises and handled & distributed through the designated handling agents at various ports. The difference between the delivered cost of urea and recovery of pool issue price (Maximum Retail Price minus Distribution Margin) is borne by the Government as subsidy on imported urea. The subsidy/ concession provided by the Government on fertilizers during the last three years and in the current year is as under:

(Rupees in crore) 2003-04 2004-05 2005-06 2006-07 (RE) Net subsidy on imported urea Nil 493.91 1201.43 2703.54 Indigenous urea 8521.00 10243.15 10460.17 11400.37 Decontrolled indigenous P&K 2606.00 3977.00 4499.20 5698.10 fertilizers Decontrolled imported P&K 720.00 1165.18 2097.00 2650.00 fertilizers