GOVERNMENT OF INDIA

MINISTRY OF CHEMICALS AND FERTILIERS

LOK SABHA

UNSTARREDQUESTION NO: 38

ANSWERED ON: 2.02.2011

IMPORT OF FOREIGN RAW MATERIALS 

(a) whether the production of chemical fertiliers is dependent on import of foreign raw materials; 

(b) if not, the facts thereof indicating the percentage of the requirements of the fertilier industry fulfilled separately from domestic sources and imports;

(c) whether it is a fact that the prices of raw materials have increased in the international maret during 2010-11 as compared to 2009-10; and 

(d) if so, the average rate of price rise and its impact on fertilier industry?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS  FERTILIERS (SHRI SRIKANT KUMAR JENA) 

 (a)  (b) Yes, Madam. About 90% of phosphatic fertiliers produced in the country are dependent on import of foreign raw material and entire requirement of Potash is imported. Only a small quantity of roc phosphate (from Raasthan and Madhya Pradesh Mines) and sulphur (from oil refineries) is available from domestic sources. However, the same are also priced at international price parity. 

(c)  (d) Yes Madam. As per the data available in the Department with respect to import of fertilier raw materials such as Ammonia, Sulphur, Phosphoric Acid, Roc Phosphate, Muriate of Potash (MOP) by manufactures of DAP and comple fertiliers for the period April 2009 - March 2010 (2009-10) and April 2010 - December 2010 (2010-11), it is indicated that prices of all raw materials, ecept MOP have increased. The details are as follows:  

   Average Import Price in US per MT % Increase   2009-10  2010-11      

MOP  470.05  363.29   - 22.71%

Phosphoric Acid 563.23  761.11   35.13%

Ammonia  284.19  361.59   27.24%

Rock  116.60  135.06   15.83%

Sulphur  83.73  164.58   96.56% 

Due to increase in prices of the fertilier raw materials in the international maret, cost of indigenous production increases. There is no substantial impact of rise in the prices on the domestic fertilier industry, ecept temporary requirement of higher woring capital, as any increase in the cost of production of fertiliers is absorbed in the form of subsidy or marginal increase in the Maimum Retail Prices (MRPs), if any.