There are 64 large size fertilizer units in the country, manufacturing a wide range of nitrogenous and phosphatic fertilizers.
Urea – 39 units ,
DAP – 18 units,
Straight nitrogenous fertilizers – 7 units,
Ammonium sulphate as a by-product – 9 units.
Total installed capacity of fertilizer production in the country Date Production(in lakh tonnes) Nitrogen Phosphate 1.4.1998 104.98 29.51 29.2.2000 110.71 36.48
Raw materials and Intermediates Sr. No. Intermediate Raw Materials 1 Ammonia (NH3) Natural Gas Asscoiated Gas Naphtha Fuel oil Coal COG Power Water 2 Sulphuric Acid (H2SO4) Sulphur Pyrites Power Water 3 Phosphoric Acid(H3PO4) Rockphosphate Sulphuric acid Power Water 4 Nitric Acid (HNO3) Ammonia Power Water
The sale prices of controlled fertilizers are fixed by the Government of India (Department of Agriculture & Cooperation) under the Fertilizer (Control) Order, 1985(FCO), issued under the Essential Commodities Act, 1955.
The prices notified by the Central Government from time to time have been much lower than the cost of production.
In addition to the retention price subsidy, equated freight subsidy is paid to the manufacturers of controlled fertilizers to cover the cost of transportation from the production plants to the consumption centres.
Since the consumer prices of both indigenous and imported urea are fixed uniformly, subsidy is also paid on imported urea in order to bridge the difference between the cost of imports and statutorily fixed consumer price.
The RPS (Retention Price Scheme) provides for fixation of retention price of individual units on per tonne basis, after taking into account the normative capacity utilisation prescribed under the scheme of the Government and a combination of norms and actuals in respect of the various cost elements and expenses.
Urea is only fertilizer which is under price, distribution & movement control through instrument of Fertilizer Control Order (FCO) & Fertilizer Movement (Control) Order (FMCO) under Essential Commodity Act (ECA).
Fertilizer Production is made under (RPS) administered by Fertilizer Industry Coordination Committee (FICC) which ensures
Subsidy payments to urea units since 1993-94: Rs in Crores Period Amount of subsidy disbursed on Indigenous urea Imported urea Total 1993-94 3800.00 598.97 4398.97 1994-95 4075.00 1166.00 5241.00 1995-96 4300 1935.00 6235 1996-97 4743 1162.85 5905.85 1997-98 6600 721.96 7321.96 1998-99 7473 124.22 7597.22 1999-2000 8670.00 74.07 8744.07 2000-2001 9480.00 1.00 9481.00 2001-2002 8257.00 47.44 8304.44 2002-03(BE) 6499.00 505.00 7004.00
Concession Scheme for Decontrolled Phosphatic & Potassic Fertilizers
Introduction of the Scheme:
The price, distribution and movement of phosphatic and potassic fertilizers which were under the RPS since November 1977, were decontrolled in August'92 on the recommendations of the Joint Parliamentary Committee on Fertilizer Pricing.
After decontrol there was a steep hike in prices of P&K fertilizers.
The Government, apprehending a drop in consumption and to enable availability of decontrolled phosphatic and potassic (P&K) fertilizers at reasonable prices, introduced a Scheme of Concession on sale of decontrolled P&K fertilizers in 1992-93, and announced concession on DAP and MOP.
The scale and coverage of the special concession has been substantially increased to give impetus to the stagnating demand for these fertilizers and to ameliorate the nutrient imbalance in the soil which is essential for sustaining the desired growth in agricultural productivity. Immediately after the decontrol of phosphatic and potassic fertilizers in August, 1992, the Government announced an adhoc concession (subsidy) of Rs.1000 on DAP and MOP and commensurately on complex fertilizers w.e.f Rabi'92-93.
In order to improve consumption of phosphatic and potassic fertilizers for improving nutrient balance, Government enhanced the rate of concession on indigenous DAP from Rs.1000 per MT to Rs.3000 per MT and fixed a concession of Rs.1500 per MT for imported DAP in July 1996. Besides, the concession on MOP was also enhanced to Rs.1500 per MT and commensurately on complexes.