Minister Rao Inderjit Singh on Import of Fertilizers

Shri Rao Inderjit Singh, Minister of State for Planning (IC) and Chemicals &Fertilizers, replied to a question on prices of imported fertilizers and said that the price of urea is determined on the basis of demand and supply of urea in the international market. 

He replied to another question on norms fixed by the Government for the agencies importing urea and said that in order to bridge the gap between the assessed requirement and estimated production, the Department of Fertilizers (DoF) has been importing urea on government account.  

However, at present, the import of Urea is canalized through the two-State Trading Enterprises (STEs) viz MMTC & STC. The STEs import is based on Global tendering.  The quantities are procured by the STEs at L1 rates out of the available bids. 

The Minister further added, “There is a long term agreement with Oman i.e. UOTA (Urea Off Take Agreement).  Under it the Government is importing approximately 20 Lakh Metric Tonnes urea from Oman India Fertiliser Company (OMIFCO). There is no complaint received against any of the agencies importing urea.” 

For each season, the quantity of urea to be imported is decided by Steering Committee of Secretaries (SCOS).  It consists of Secretary (Fertilizers) (as Chairman), Chairman Railway Board, Secretary (Commerce), Secretary (Expenditure), Secretary (Agriculture) and Secretary (Shipping).  

Shri Rao Inderjit Singh informed, “SCOS decides the overall quantity of urea required to be imported on Government Account and authorizes Secretary (Fertilizers) as Chairperson of SCOS to determine the timing, quantity and STE to import urea on Government Account for ensuring adequate availability of urea in the country.”