Fertilizer Production in the country

Production of fertilizers in the country is not sufficient to meet the local demand.  There is gap between domestic production and demand. The gap is met through imports. The details of production of major fertilizers in the country during last two years are given below:-

(Figure in ‘LMT’)

Urea is the only fertilizer under statutory price control and its import is restricted and permitted through State Trading Enterprises ( STEs), namely Metals and Mineral Trading Corporation of India (MMTC), State Trading Corporation Limited (STC) and Indian Potash Limited (IPL), under the Foreign Trade Policy of the Government. Urea for direct agricultural use is imported on Government account to bridge the gap between assessed demand and indigenous production. Government is also importing approximately 20 Lakh Metric Tonnes urea from Oman India Fertilizer Company (OMIFCO) under a Long Term Urea Off Take Agreement (UOTA) between GOI & OMIFCO.

Import of fertilizers (other than Urea) is free, commonly known as Open General License (OGL). Various companies import these fertilizers as per their commercial judgment.  Muriate of Potash (MOP) is the only fertilizer, whose demand is fully met through imports as there are no viable sources of MOP in the country.