Demand and Supply of Fertilizers
The Minister of State for Chemicals and Fertilizers, Shri Nihal Chand has said that the quantum of production of various fertilizers during the last three years and current year is given as under:
<Figures in LMT>
Year | Urea | DAP | NPK |
2011-12 | 220.20 | 40.57 | 79.52 |
2012-13 | 225.79 | 36.44 | 61.80 |
2013-14 | 227.09 | 36.08 | 69.09 |
2014-15(upto June) | 55.93 | 7.92 | 14.17 |
A statement showing requirement, availability and sales of various fertilizers to all the States/ UTs during each of the last three years and of current year (April to June, 2014) is annexed at ‘A’.
It can be seen from the above annexure that the availability vis-à-vis the sales have been adequate and comfortable in all the States/UTs.
In a written reply in the Lok Sabha today, Shri Nihal Chand said as per information received from various State Governments, there were 23 cases in the year 2011-12, 7 cases in 2012-13 and 4 cases in 2013-14. However, there is no report from any State Government/UT during this year so far. Regarding corrective steps, it is stated that State Governments are adequately empowered to conduct search, make seizers and take punitive action against any person violating provisions of FCO, 1985 and Essential Commodity Act, 1955. In addition, Department of Fertilizers has, from time to time, written to the Chief Secretaries, Ministry of Home Affairs to activate the enforcement agencies under their jurisdiction to take action in this regard. Further, Department of Fertilizers, through weekly video conference with Department of Agriculture & Cooperation and representatives of State Government has been sensitizing and advising the State Governments for keeping strict vigil and for taking of prompt action by the State Governments to check black –marketing.
Demand and production of fertilizers
The Minister of State for Chemicals and Fertilizers, Shri Nihal Chand has said that the details of annual demand (requirement) and indigenous production of fertilizers throughout the country is as under:
<Figures in LMT>
Year | Urea | DAP | NPK | |||
Annual Demand | Production | Annual Demand | Production | Annual Demand | Production | |
2013-14 | 316.90 | 227.09 | 109.86 | 36.08 | 107.36 | 69.09 |
2014-15 * | 66.04 | 55.93 | 21.96 | 7.92 | 22.46 | 14.17 |
* Figures for 2014-15 are upto June, 2014 only .
In a written reply in the Lok Sabha today, Shri Nihal Chand, department of Fertilizers has been taking following steps to meet the domestic requirement of various subsidized chemical fertilizers to each State/UTs:-
(i) The month-wise demand is assessed and projected by the Department of Agriculture & Cooperation (DAC) in consultation with the State Governments before commencement of each cropping season.
(ii) On the basis of month-wise & state-wise projection given by Department of Agriculture and Cooperation, Department of Fertilizers allocates sufficient/adequate quantities of fertilizers to States by issuing monthly supply plan and continuously monitors the availability through following system:
(iii) The movement of all major subsidized fertilizers is being monitored throughout the country by an on-line web based monitoring system (www.urvarak.co.in) also called as Fertilizer Monitoring System (FMS);
(iv) The State Governments are regularly advised to coordinate with manufacturers and importers of fertilizers for streamlining the supplies through timely placement of indents for railway rakes through their state institutional agencies like Markfed etc.
(v) Regular weekly Video conference is conducted jointly by Department of Agriculture & Cooperation (DAC), Department of Fertilizers (DoF), and Ministry of Railways with State Agriculture Officials and corrective actions are taken to dispatch fertilizer as indicated by the State governments.
(i) The gap in the demand and domestic production of fertilizer is met through imports.
The Minister saidthe Department of Fertilizers had notified the New Investment Policy(NIP)-2012 on 2ndJanuary, 2013 to facilitate fresh investment in Urea sector in future and to reduce import dependency in the country. The policy provides for revamp, revival, brownfield projects and Greenfield projects in Urea sector.
Apart from above, the Cabinet Committee on Economic Affairs (CCEA) in August, 2011 had approved the Draft Rehabilitation Scheme (DRS) for revival of five Units of Fertilizer Corporation of India Limited (FCIL) namely Sindri, Talcher, Ramagundum, Gorakpur and Korba and three units of Hindustan Fertilizers Corporation Limited(HFCL) namely Haldia, Baruni and Durgapur. Three closed units of FCIL namely Sindri, Ramagundam and Talcher being revived by the Public Sector Undertakings through nomination route. Remaining two closed units namely Gorakhpur and Korba of FCIL and three units of HFCL namely Barauni, Durgapur and Haldia of HFCL are to be revived through bidding route.
He said that there is also a proposal for setting up a new ammonia urea complex of minimum 8.646 Lakh Metric Tonne Per Annum (LMTPA )at a estimated cost of Rs. 4400 crores at Namrup within the existing premises of BVFCL on Public Private Partner (PPP) basis which subsequently replace the existing two uneconomical operating ammonia- urea plants, Namrup II and III. The project will be developed by a Joint Venture (JV) consisting of BVFCL, Government of Assam (GoA), Oil India Limited (OIL) and private/public entity. BVFCL (11%), GoA(11%) and OIL(26%) will be awarded equity in the project on nomination basis while private/public parties(52%) will be inducted through competitive bidding. BVFCL’s share on equity shall be by way of transferring the useful & equivalent tangible assets to the proposed JV. The remaining Assets of BVFCL shall remain with BVFCL.
It is also informed that in order to meet domestic requirement of Potasic and Phosphatic (P&K) fertilizers, the Department of Fertilizers has been encouraging the fertilizers companies to increase the fertilizer production. In this regard, the Government has been encouraging / facilitating the indigenous fertilizer companies for acquisition of raw materials assets abroad through joint ventures and also for Long Term Agreement with fertilizer control rich countries for supply of raw materials/ intermediates.
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NSK/NN