Modi government's 3 pronged strategy to cut Fertilizer import bill to the tune of Rs 52,000 crores by 2023

Government is making all efforts for 'ease of doing business' in the fertilizer sector to make India self-reliance in fertilizer production by 2023 said Union Minister for Chemicals and Fertilizers D V Sadananda Gowda on September 13. The move if successful would save more than Rs 52,000 crore foreign exchange, spent on importing fertilizers. 

India is working on a three-pronged strategy.

(1) To increase indigenous production of fertilizers.

(2) To encourage farmers to opt for organic and organic farming.

(3) To ask farmers not to use more than the required fertilizers.

To Increase Production

Government is Planing to make an investment of Rs 40,000 crores to set up new units to reduce import dependency. "Further to promote indigenous industries, we are converting all fertilizer companies to gas-based technology. Recently we have revived four urea plants (Ramagundam, Sindhri, Barouni and Gorkhpur) in India. By 2023 we should become self –sufficient in the production of Fertilizers," The Minister said

In the fiscal year 2017-18, India had imported nearly 59 Lakh tones of fertilizer to the tune of around USD 1300 Million. In the fiscal year, the total urea import was to the tune of USD 2100 million for importing about 84 MT of fertilizers. Though the fertilizers import has been continuously reducing for the past few years, the government wants to cut its maximum import Bill in the coming few years to make India self-reliant. He said new Fertilizer units being set up with an investment of 40,000 crore rupees

To encourage farmers to opt for organic and organic farming

Government is encouraging the production of organic and Nano fertilizers in the country. It is Promoting and subsidizing it as organic and nano fertilizers are 25-30 per cent cheaper. It would also give 18 to 35 per cent higher yield and keep the soil in good health. Other than improving soil health, it would also reduce the production cost of the farmers.

In a move to promote Nano fertilizers, IFFCO has distributed free nano fertilizers to 12,000 farmers and agriculture universities across the country. It has received positive feedback from farmers, He Minister said.

To ask farmers not to use more than the required fertilizers

Another area of action for the Ministry is to ask farmers not to use extra fertilizers as it spoils soil health and pollute underground water. In this direction, the Government has already made soil health cards of farmers to tell them which fertilizers they should use. This would reduce the usage of fertilizers by 10 to 20 %.  The Minister urged farmers to use Urea judiciously as excessive use of Urea may spoil the soil health. He advised farmers to use fertilizers according to their soil health cards.

He said the government is committed to making India Atmanirbhar (self-reliant) in true sense. Government has further started using coastal shipping as an additional mode of transportation. For this, the policy for reimbursement of freight subsidy for distribution of subsidized fertilizers through coastal shipping or through inland waterways was announced on last year.

He said in the last fiscal year, 1.14 Lakh metric tonnes of fertilizers have been moved through coastal shipping. On the cost fixation rules for urea units, the Union Government has removed the ambiguities in the Modified NPS (New Pricing Scheme)-III.  This will facilitate smooth implementation of Modified NPS-III and would give an Additional Fixed Cost of Rs.350/MT to 30 Urea units.

 

Another grant of special compensation of Rs. 150/MT to Urea units would be given to more than 30 years old fertilizer units and converted to gas. This move would incentivize these units to remain viable for sustained production. It will also facilitate continued operations of the urea units resulting in the sustained and regular supply of Urea to the farmers, the Minister said.

Fertilizer Situation in India

India today is the third-largest producer of nitrogenous fertilizers in the world only behind China and USA. At present, there are 30 large size units in the country producing urea (as on date 29 are functioning) 21 units produce DAP and complex fertilizers, 5 units produce low analysis straight nitrogenous fertilizers. Besides, there are about 80 small and medium scale units in operation producing single super phosphate (SSP). The total installed capacity of fertilizer production, which was 119.60 LMT of nitrogen and 53.60 LMT of phosphate as on 31.03.2004, has marginally increased to 120.61 LMT of nitrogen and 56.59 LMT of phosphate as on 31.03.2011.

Fertilizer Requirement in India and its forecast.

 

According to the Department of Agriculture, Cooperation & Farmers Welfare, agriculture production in the country has increased despite the decreasing are under cultivation. The production of rice has reached 110.15 million metric ton in 2017 and wheat production has reached 98.38 million metric ton from 104.41 million metric ton of rice and 92.29 million metric ton of wheat in 2016. Various Initiatives of Government of India, such as Initiative for pulses by providing subsidy fo quality seeds produced, cluster frontline demonstrations through KVKs and so on are also being undertaken under National Food Securit Mission (NFSM) for increasing the production and the productivity of pulses in the country.

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