Government committed to make the country self-reliant in P&K fertilizers

The Government has taken several steps to make the country self-reliant in P&K fertilizers. These are as follows: To make the country self-reliant in fertilizer production and to promote manufacturing, fertilizer companies under NBS were allowed to enhance their manufacturing capacity on a trial basis of the requests received and also to include new P&K companies and their fertilizer products under NBS.

Potash from Molasses (PDM), a 100% domestically manufactured fertilizer, was notified under the Nutrient Based Subsidy (NBS) regime from 13.10.2021.

With regard to Urea, the Government announced a New Investment Policy (NIP) to facilitate new investments in the urea sector and make India self-reliant in the urea sector. Under this policy, a total of 6 new urea units were set up, out of which four urea units were set up through Joint Venture Companies (JVCs) of designated PSUs and two urea units were set up by private sector companies. The units set up through joint venture companies include Ramagundam Urea Unit of Ramagundam Fertilizers and Chemicals Limited (RFCL) in Telangana, and three urea units, Gorakhpur, Sindri and Barauni, set up by Hindustan Urvarak and Rasayan Limited (HURL) in Uttar Pradesh, Jharkhand and Bihar respectively. The units set up by private sector companies include Panagarh Urea Unit of Matix Fertilizers and Chemicals Limited (MATIX) in West Bengal, and Gadepan-3 Urea Unit of Chambal Fertilizers and Chemicals Limited (CFCL) in Rajasthan. Each unit has an installed capacity of 12.7 lakh metric tonnes per annum (LMTPA). These units are equipped with modern technology and are therefore highly energy efficient. Thus, all these units have added a total of 76.2 lakh MTPA urea production capacity and together the total domestic urea production capacity (Re-Assessed Capacity, RAC) has increased from 207.54 lakh MTPA in 2014-15 to the present 283.74 lakh MTPA. In addition, a specific policy for revival of Talcher unit of FCIL through a joint venture company of a designated PSU, Talcher Fertilizers Limited (TFL), has also been approved. Under this, a new greenfield urea plant with coal gasification route of 12.7 lakh MTPA capacity has been approved. The Government has also notified New Urea Policy (NUP)- 2015 on 25th May, 2015 for the existing 25 gas-based urea units with an objective to maximise domestic urea production beyond RAC. NUP-2015 has resulted in additional production of 20-25 lakh metric tonnes per annum over the annual production during 2014-15. All these measures will increase urea production from 225 lakh metric tonnes during 2014-15 to a record urea production of 314.09 lakh metric tonnes in 2023-24.

The Government recommends soil test based balanced and integrated nutrition management through mixed use of plant nutrients, both inorganic and organic (manures, bio-fertilizers etc.) to reduce the use of chemical fertilizers to prevent deterioration of soil health, pollution of environment and groundwater. It also advocates split use and placement of fertilizers, use of slow release N fertilizers and nitrification inhibitors, growing leguminous crops and adoption of resource conservation technologies (RCT). The Indian Council of Agricultural Research (ICAR) imparts training, organizes front line demonstrations and public campaigns to educate farmers on all these aspects. To promote the use of organic sources of fertilizers, the Government has developed a number of technologies and undertaken technology dissemination activities. Technologies for recycling and enrichment of organic wastes have been developed. To increase the use of biofertilizers, ICAR has developed improved and efficient strains of specific biofertilizers for different crops and soil types. Liquid biofertilizer technology with longer dormant-life has also been developed. These are available for use by farmers and other stakeholders. ICAR also imparts training to educate farmers and provides technical support to Government schemes in this regard.

The Government has also approved Market Development Assistance at the rate of Rs.1,500/MT for promotion of organic fertilizers produced in plants located under the umbrella initiative of Galvanizing Organic Bio-Agro Resources Dhan (GOBARDHAN) covering various Biogas/CBG supported schemes/programmes of stakeholder Ministries/Departments such as Affordable Transportation Towards Sustainable Alternatives (SATAT) of Ministry of Petroleum & Natural Gas, ‘Waste to Energy’ of Ministry of New & Renewable Energy, Swachh Bharat Mission (Grameen) of Department of Drinking Water & Sanitation, etc. Further, for promotion of organic and bio-fertilizers, the Government has urged all the fertilizer marketing companies to provide for mandatory lifting of Fermented Organic Manure (FOM) and other organic and bio-fertilizers along with chemical fertilizers with a “single basket approach” to ensure a balanced and integrated nutrition management for crops.