The Department of Fertilisers has implemented Web based Fertilizer Monitoring System (FMS) which is able to track the dispatch, receipt and sale of fertilisers in each district in the country against the approved plans. Reviewing the position regarding availability of fertilizers in the country and the implementation of recent initiatives for its movement and distribution, here today, the Minister for Chemicals and Fertilisers and Steel, Shri Ram Vilas Paswan observed that availability of Urea, DAP and MOP is being planned and monitored on the basis of detailed districtwise, monthwise and companywise Supply Plans. This will ensure adequate availability of fertilizers against the assessed requirement upto the district level. The Supply Plans prepared by the State Governments concerned in consultation with the lead fertiliser company and other major fertiliser suppliers to the State require each fertiliser company to identify upto 3 Primary Stock Points(PSPís) in each district to which it is marketing fertilisers. The details of such identified PSPís have already been entered into the FMS. Receipt and sales of fertilizers in each district will be monitored through these PSPís.
It has been decided that subsidy will be paid to the fertiliser manufacturers/suppliers with effect from 1.4.2007 only on the basis of actual receipt of fertilisers in the State. The details can be seen at www.urvarak.co.in. In respect of urea, fertilizer companies will be provided actual cost of transportation of fertilizers by way of primary freight upto the primary stock point and by way of secondary freight for movement beyond the primary stock point.
In so far as budgetary provision for subsidy on fertilizers is concerned, the requirement of funds for 2007-08 including the carryover liability of Rs. 8082 crores as estimated by the Department is Rs. 50284.08 crores as against which, the B.E. allocation is Rs.22451 crores. The shortfall in the budgetary provision has been apprised to the Ministry of Finance.
The DoF has also authorized creation of buffer stocks of urea in each of the major agricultural States to be operated by the lead fertilizer company. The buffer stock in respect of urea has been authorized to the extent of 5% of the seasonal demand. For the current season, the authorized buffer to be operated is 6.5 LMT of urea. The DoF also proposes to maintain a buffer in respect of DAP (2 LMT) and MOP (1 LMT) to meet any exigent situations.
The pre-positioning of stocks is being undertaken to obviate any shortages at the local level during the season. It is proposed to pre-position stocks at the level of 75% of the monthly requirement by the Ist of the month and 100% of the requirement by 15th of each month.
The requirement of fertilizers during the current Kharif season as assessed by the DAC is 131.65 LMT of Urea, 40.08 LMT of DAP and 16.52 LMT of MOP as against the assessed requirement during the last Kharif season of 122.37 LMT of Urea, 33.10 LMT of DAP and 14.66 LMT of MOP. This yearís demand represents an increase of 7.5% in respect of Urea, 21% in respect of DAP and 13% in respect of MOP over the corresponding period last year. The availability of fertilizers during the first two months of the season has been satisfactory.
In order to ensure adequate availability of fertilizers during the season, the State Trading agencies have already contracted for 18 LMT of Urea and 12 LMT of DAP and further imports will be undertaken as authorized to meet the seasonal requirement.
In respect of DAP, which is a decontrolled fertilizer, the State Governments have been advised to nominate a State agency/federation which can place orders for the requisite quantity with IPL/MMTC for timely importing the fertilizers. This is in line with the decisions taken in the Conference of State Agriculture Ministers on Fertilizer Sector held on 29th January, 2007.
The DOF is taking all steps for early revival of the 8 closed fertilizer plants of the erstwhile HFCL/FCIL. It has already been decided to take revival 5 of these closed units at Ramagundam, Durgapur, Barauni, Gorakhpur and Talcher through NFL, RCF and KRIBHCO.