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Fertilizer Movement & Shipping

Fertilizer Movement & Shipping

The Department of Fertilizers has been entrusted the responsibility of ensuring movement, distribution and allocation of subsidised chemical fertilizers, i.e. urea, from various fertilizer plants and ports in accordance with the State-wise requirement assessed by the Department of Agriculture & Co-operation (DAC). Every month fertilizers supply plan are made to cater to the requirement of state/UTs.

Work Allocation

The Department of Fertilizers has been entrusted the responsibility of ensuring movement, distribution and allocation of subsidised chemical fertilizers, from various fertilizer plants and ports in accordance with the State-wise requirement assessed by the Department of Agriculture & Co-operation and farmers Welfare (DAC & FW). The distribution of imported urea is made keeping in view the requirements of each of the States/UTs.

1. The function of movement division is to ensure availability of all fertilizers (Urea, DAP, MOP and NPKS) at State level as per requirement projected/assessed by DAC&FW in consultation with States.

2. FERTILIZER ASSESSMENT:

i) The assessment of the requirement of chemical fertilizers i.e. Urea, DAP, MOP & NPK for each season is finalized by Department of Agriculture and Cooperation and farmers Welfare (DAC &FW) in consultation with the States.

ii) For this, biannual Zonal Conferences are held before start of each cropping season i.e. Kharif (April to September) and Rabi (October to March). 

3. PREPARATION OF SUPPLY PLAN:

i) To fulfill the monthly requirement as projected by DAC & FW, Movement Division prepares agreed supply plan in consultation with Manufacturers / Importers.

ii) Though 50% of indigenously produced Urea and 20% of the Phosphatic&Potashic fertilizers (DAP, MOP and NPK) Indigenous / Imported are regulated under clause(6) of the Fertilizer (Control) Order, 1985 but the department continues to draw the agreed monthly supply plan of all the fertilizers in consultation with the manufacturers and importers as per Fertilizer (Movement) Control Order, 1973.

iii) The monthly supply plan is prepared keeping in view the following factors:- 

* Approximately 50% supply should be from indigenous sources.

*Established marketing zones of the companies.

*Keeping the lead distance as minimum as possible.

iv) The agreed monthly supply plan is issued before 25th of each month for the next month.

v) The fertilizers are mainly transported through railways and for this purpose directions are issued to all suppliers to maintain 80:20 ratio i.e. 80% of the total quantity to be moved through railways and 20% by road.

vi) requirement of a state is fulfilled through 4 to 5 sources, so as to keep the cushion in ease of any exigencies like plant failure or any bottlenecks in logistics. 

4. MONITORING OF FERTILIZERS:

i) Weekly Video conference is conducted jointly by DAC & FW, DoF, Ministry of Railways with State Agriculture Officials, corrective actions are taken to dispatch fertilizer as indicated by the State Governments.

ii) The gap in the requirement and indigenous production of Fertilizers is met through imports.

iii) DoF ensures availability of fertilizers at State level, State Governments are responsible for equitable distribution as per District/ Block level requirement.

iv)  there is real time monitoring through dashboard of DoF and also a separate monitoring cell is there for the purpose.

5. IMPORT OF FERTILIZERS:

i) Import of urea for direct agriculture use is made on Government Account through STEs viz., MMTC & RCF to bridge the gap between indigenous production and assessed demand.

ii) The Steering Committee of Secretaries (SCOS) under the chairmanship of Secretary (Fertilisers) and consisting Secretary (Agriculture), Secretary (Expenditure), Commerce Secretary, Secretary (Shipping) and Chairman Railway Board as members, decides the quantity of urea to be imported in each cropping season i.e. Kharif & Rabi and authorizes DoF to import urea as and when required.

iii) P&K Fertilizer (DAP, MOP and NPK) are under Open General Licence (OGL) as per Foreign Trade Policy. 

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Movement

The Department of Fertilizers has been entrusted the responsibility of ensuring movement, distribution and allocation of subsidised chemical fertilizers, from various fertilizer plants and ports in accordance with the State-wise requirement assessed by the Department of Agriculture & Co-operation (DAC). The distribution of imported urea is made keeping in view the requirements of each of the States/UTs.

2. FERTILIZER ASSESSMENT:

i) The assessment of the requirement of chemical fertilizers i.e. Urea, DAP, MOP & NPK for each season is finalized by Department of Agriculture and Cooperation in consultation with the States.

ii) For this, biannual Zonal Conferences are held before start of each cropping season i.e. Kharif (April to September) and Rabi (October to March). 

3. PREPARATION OF SUPPLY PLAN:

i) To fulfill the monthly requirement as projected by DAC, Movement Division prepares agreed supply plan in consultation with Manufacturers / Importers.

ii) Though 50% of indigenously produced Urea and 20% of the Phosphatic & Potashic fertilizers (DAP, MOP and NPK) Indigenous / Imported are regulated under clause(6) of the Fertilizer (Control) Order, 1985 but the department continues to draw the agreed monthly supply plan of all the fertilizers in consultation with the manufacturers and importers as per Fertilizer (Movement) Control Order, 1973.

iii) The monthly supply plan is prepared keeping in view the following factors:- 

* Approximately 50% supply should be from indigenous sources.

*Established marketing zones of the companies.

*Keeping the lead distance as minimum as possible.

iv) The agreed monthly supply plan is issued before 25th of each month for the next month.

v) The fertilizers are mainly transported through railways and for this purpose directions are issued to all suppliers to maintain 80:20 ratio i.e. 80% of the total quantity to be moved through railways and 20% by road.

vi) Requirement of a state is fulfilled through 4 to 5 sources, so as to keep the cushion in ease of any exigencies like plant failure or any bottlenecks in logistics. 

4. MONITORING OF FERTILIZERS:

i) Weekly Video conference is conducted jointly by DAC, DoF, Ministry of Railways with State Agriculture Officials, corrective actions are taken to dispatch fertilizer as indicated by the State Governments.

ii) The gap in the requirement and indigenous production of Fertilizers is met through imports.

iii) DoF ensures availability of fertilizers at State level, State Governments are responsible for equitable distribution as per District/ Block level requirement.

iv)  there is real time monitoring through dashboard of DoF and also a separate monitoring cell is there for the purpose.

5. IMPORT OF FERTILIZERS:

i) Import of urea for direct agriculture use is made on Government Account through STEs viz. MMTC & RCF to bridge the gap between indigenous production and assessed demand.

ii) The Steering Committee of Secretaries (SCOS) under the chairmanship of Secretary (Fertilisers) and consisting Secretary (Agriculture), Secretary (Expenditure), Commerce Secretary, Secretary (Shipping) and Chairman Railway Board as members, decides the quantity of urea to be imported in each cropping season i.e. Kharif & Rabi and authorizes DoF to import urea as and when required.

  1. iii) P&K Fertilizer (DAP, MOP and NPK) are under Open General Licence (OGL) as per Foreign Trade Policy.