Press Information Bureau
Government of India
Ministry of Chemicals and Fertilizers
08 JAN 2019 3:16PM by PIB Delhi
Import of Fertilizers

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

In a written reply to another question on norms fixed by the Government for the agencies importing urea, Shri Singh stated 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.  At present the import of Urea is canalised through the two State Trading Enterprises (STEs) viz MMTC & STC. The STEs importbased on Global tendering.  The quantities are procured by the STEs at L1 rates out of the available bids.

Besides this there is long term agreement with Oman i.e. UOTA (Urea Off Take Agreement) under which the Government is importing approximately 20 Lakh Metric Tonnes urea from Oman India Fertiliser Company (OMIFCO).Further,there is no complaint received against any of the agencies importing urea, the Minister added.

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