Production of urea, a key fertiliser, is expected to increase by 4.2 lakh tonnes to 223
lakh tonnes this fiscal.
India produced 218.80 lakh tonnes of urea in 2010-11, Minister of State for Chemicals and Fertilisers Srikant Jena informed the Rajya Sabha last week.
Consequently, imports of the essential crop nutrient are estimated to decline by 4.1 lakh tonnes to 62 lakh tonnes in the 2011-12 financial year, compared to 66.10 lakh tonnes last
“In the financial year 2011-12, the projected demand and indigenous production of urea is 285 lakh tonnes and 223 lakh tonnes, respectively. The gap is met through imports,” Jena said.
In order to boost urea output, the government has decided to revive the closed units of Fertiliser Corporation of India Ltd (FCIL) and Hindustan Fertiliser Corporation Ltd (HCIL).
The government has decided to revive the Sindri, Gorakhpur, Talcher and Ramagundam units of FCIL as well as the Barauni and Durgapur units of HCIL. All the units were shut
down in 2002 by the government.
The Cabinet Committee on Economic Affairs (CCEA), in its meeting held on August 4, 2011, decided to revive the four units of FCIL and two of HCIL, Jena informed the House.
The minister added that the list also included two non-commissioned fertiliser units at Korba and Haldia, which were set up by FCIL and HFCL, respectively.
Urea is the only fertiliser subject to partial movement, distribution and statutory price controls. It is imported for direct use on the government account to bridge the demand-supply gap.
A proposal for a Nutrient-Based Subsidy (NBS) for urea is under the government’s consideration.