India's urea import to rise by over 75 pc: Paswan
India's urea import will rise by over 75 per cent to 50.57 million tons during the current fiscal as domestic production was inadequate to meet the demand, says Fertilizer Minister Ram Vilas Paswan.
By PTI |
NEW DELHI: India's urea import will rise by over 75 per cent to 50.57 million tons during the current fiscal as domestic production was inadequate to meet the demand, Fertilizer Minister Ram Vilas Paswan told Rajya Sabha on Friday.
Replying to supplementaries during Question Hour, he said domestic fertilizer production capacity in the country was about 200 million tons and additional 18-19 million tons is sourced from a joint venture project in Oman.
The gap between production and demand was about 50 million tons, he said. "The gap is widening (because of surge in demand and no addition in capacity)."
The Government, he said, plans to reopen eight closed fertilizer units once natural gas supply is available. Against the requirement of 41 million standard cubic meters per day, gas supplies to fertilizer plants was only 29 mmscmd.
The reopening of eight units would give 8 million tons of urea per annum, he said.
Paswan said a Group of Ministers has decided to give fertilizer units priority in allocation of natural gas to be produced from new fields. "Petroleum Ministry has assured of adequate gas availability by 2009."
The subsidy paid by Government is slated to increase to Rs 75,000 crore from Rs 45,000 crore, he said. Urea costs Rs 15,000 per ton but it is being supplied to farmers at Rs 4,830 per ton.
Similarly, DAP is sold at Rs 9,300 per ton despite it costing Rs 25,000 a ton and sale price of MOP was Rs 4,000 as opposed to cost of production of Rs 12,000 per ton.
"We don't want to increase fertilizer price and will continue to give subsidy," he said.
Replying to supplementaries during Question Hour, he said domestic fertilizer production capacity in the country was about 200 million tons and additional 18-19 million tons is sourced from a joint venture project in Oman.
The gap between production and demand was about 50 million tons, he said. "The gap is widening (because of surge in demand and no addition in capacity)."
The Government, he said, plans to reopen eight closed fertilizer units once natural gas supply is available. Against the requirement of 41 million standard cubic meters per day, gas supplies to fertilizer plants was only 29 mmscmd.
The reopening of eight units would give 8 million tons of urea per annum, he said.
Paswan said a Group of Ministers has decided to give fertilizer units priority in allocation of natural gas to be produced from new fields. "Petroleum Ministry has assured of adequate gas availability by 2009."
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The subsidy paid by Government is slated to increase to Rs 75,000 crore from Rs 45,000 crore, he said. Urea costs Rs 15,000 per ton but it is being supplied to farmers at Rs 4,830 per ton.
Similarly, DAP is sold at Rs 9,300 per ton despite it costing Rs 25,000 a ton and sale price of MOP was Rs 4,000 as opposed to cost of production of Rs 12,000 per ton.
"We don't want to increase fertilizer price and will continue to give subsidy," he said.
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