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Quarterly Statistical Bulletin Review of Fertilizer and Agriculture Situation (For FAI members only) VOL. VI No. 4 January-March 2020 Contents Page no. I. Review of 2019-20 1.0 Fertilizer scenario 1.1 Production 2 1.2 Import 2 1.3 DBT sale 2 1.4 COVID-19 and its Impact 3 2.0 Natural Gas availability 3 3.0 Crop situation 3.1 Crop area sown – Rabi 2019-20 4 3.2 Production of Food Grains and Commercial Crops: 2019-20 5 4.0 Procurement, Stock and Exports of Food grains 4.1 Procurement 5 4.2 Food grain stock 6 4.3 Exports 6 5.0 Global Food Outlook 2019 7 6.0 FAO Food Price Index 8 II. Prospects for 2020-21 1.0 Rainfall 1.1 Pre monsoon 2020 9 1.2 Prospects of South west monsoon 2020 9 1.3 Water reservoirs 9 1.4 Crop prospects 9 2.0 Union Budget 2020-21 2.1 Thrust on Agriculture 9 2.2 Fertilizer subsidy 10 3.0 Policy Developments 3.1 Implementation of NBS policy for P&K fertilizers, revision in the NBS rates for 2020-21 10 3.2 Domestic natural gas price for the period April-September 2020 11 Annexures I to III 13 to 17 The Fertiliser Association of India FAI House, 10 Shaheed Jit Singh Marg, New Delhi – 110067 CIN: U85300 DL 1955 NPL 002999 Phone: 91-11-26567144, Fax: 91-11-26960052 Website: https://www.faidelhi.org Prepared in Statistics Division of FAI
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Page 1: Quarterly Statistical Bulletin Review of Fertilizer and ...Quarterly Statistical Bulletin, Vol. VI, No.4, Jan.-March 2020 5 FAI, New Delhi 3.2 Production of Food Grains and Commercial

Quarterly Statistical Bulletin Review of Fertilizer and Agriculture Situation

(For FAI members only)

VOL. VI No. 4 January-March 2020

Contents Page no.

I. Review of 2019-20

1.0 Fertilizer scenario 1.1 Production 2 1.2 Import 2 1.3 DBT sale 2 1.4 COVID-19 and its Impact 3

2.0 Natural Gas availability 3

3.0 Crop situation 3.1 Crop area sown – Rabi 2019-20 4 3.2 Production of Food Grains and Commercial Crops: 2019-20 5

4.0 Procurement, Stock and Exports of Food grains 4.1 Procurement 5 4.2 Food grain stock 6 4.3 Exports 6

5.0 Global Food Outlook 2019 7

6.0 FAO Food Price Index 8

II. Prospects for 2020-21

1.0 Rainfall 1.1 Pre monsoon 2020 9 1.2 Prospects of South west monsoon 2020 9 1.3 Water reservoirs 9 1.4 Crop prospects 9

2.0 Union Budget 2020-21 2.1 Thrust on Agriculture 9

2.2 Fertilizer subsidy 10

3.0 Policy Developments 3.1 Implementation of NBS policy for P&K fertilizers, revision in the NBS rates for 2020-21 10 3.2 Domestic natural gas price for the period April-September 2020 11

Annexures I to III 13 to 17

The Fertiliser Association of India FAI House, 10 Shaheed Jit Singh Marg, New Delhi – 110067

CIN: U85300 DL 1955 NPL 002999 Phone: 91-11-26567144, Fax: 91-11-26960052

Website: https://www.faidelhi.org Prepared in Statistics Division of FAI

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I. Review of 2019-20

1.0 Fertilizer Scenario – 2019-20 (April/March) Weather was normal during South west monsoon and post monsoon seasons. Supported by good rainfall and adequate availability of water in the reservoirs, fertilizer sale recorded robust growth during 2019-20. Availability of fertilizers from opening inventory, indigenous production and import was sufficient to take care of increased demand during the year. The details of production, import and sale (DBT) are narrated below.

1.1 Production During 2019-20 (April/March), production of all major fertilizers increased except NP/NPK complex fertilizers which declined over 2018-19. Production of Urea, DAP and SSP increased by 2.3%, 16.7% and 4.3%, respectively, during 2019-20 over 2018-19. However, production of NP/NPK complex fertilizers witnessed a decline of 3.2% during the period.

1.2 Import Import of Urea at 9.123 million tonnes (MMT) and NP/NPKs at 0.746 MMT during 2019-20 recorded sharp increase of 21.9% and 36.6%, respectively, over the level of 2018-19. However, the import of DAP at 4.870 MMT and MOP at 3.670 MMT was lower by 26.2% and 12.9%, respectively, during the period.

1.3 Sale (DBT) DBT sale (sale by retailers) of all major fertilizers showed positive growth during 2019-20 over 2018-19. Sale of Urea at 33.695 MMT, DAP at 10.100 MMT, NP/NPKs at 9.857 MMT, SSP at 4.403 MMT and MOP at 2.787 MMT marked increase of 5.3%, 15.6%, 9.0%, 1.7% and 2.0%, respectively, during 2019-20 over 2018-19. Table 1 shows production, import and sale of major fertilizers during 2018-19 and 2019-20 (April/March). DBT sale of all major fertilizers in 2018-19 and 2019-20 is also presented in Figure 1.

Table 1: Production, Import and Sale of Major Fertilizers

2018-19 and 2019-20 (April/March) Urea DAP NP/NPKs SSP MOP

I. Production (Million tonnes) 2018-19 23.899 3.899 8.979 4.076 -

2019-20 24.455 4.550 8.688 4.253 -

Increase/decrease 2.3% 16.7% -3.2% 4.3% -

II. Import (Million tonnes) 2018-19 7.481 6.602 0.546 - 4.214

2019-20 9.123 4.870 0.746 - 3.670

Increase/decrease 21.9% -26.2% 36.6% - -12.9%

III. Sale# (Million tonnes) 2018-19 32.014 8.734 9.042 4.328 2.734*

2019-20 33.695 10.100 9.857 4.403 2.787*

Increase/decrease 5.3% 15.6% 9.0% 1.7% 2.0%

* MOP for direct application. # = DBT sale.

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1.4 COVID-19 and its Impact The later part of the year 2019-20 marked unprecedented crisis posed by pandemic due to corona virus disease (COVID-19). The disease emerged as a threat not only to human health and safety but has also adversely impacted the economies across the world. The Government of India announced the complete lockdown in the country w.e.f. March 25, 2020 for 21 days initially and further extended upto May 17, 2020 in two stages.

Most of the economic activities came to halt amid lockdown except essential commodities and services. Fertilizer sector is exempted from lockdown restrictions as the sector falls under the Essential Commodity Act. But lockdown posed a number of challenges for continuous operation of fertilizer plants. For example, there was shortages of availability of labour at plant sites for loading and for unloading at destination points. Availability of consumable materials such as bags and chemicals which are required for operation also posed challenge in some plants. Moreover, industry is starved of its working capital due to huge unpaid subsidy dues.

The government has been very prompt in addressing the issues faced by the industry due to COVID-19. Clarifications from the Ministry of Home Affairs helped in continuous operation of fertilizer plants, sales and interstate movement of fertilizers to some extent.

2.0 Natural Gas availability Indigenous production of natural gas has been falling over the years. There is significant shortfall in natural gas availability from domestic sources against the demand. Increased demand for gas is fulfilled through higher imports of LNG. Table 2 shows trends in production, import and consumption of natural gas during 2012-13 to 2018-19 (April/March) and 2019-20 (April/Feb.).

32.014

8.734

2.734

9.042

4.328

33.695

10.100

2.787

9.857

4.403

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Urea DAP MOP NP/NPKs SSP

Figure 1. DBT sale of major fertilizers

2018-19 and 2019-20 (April/March)

2018-19 2019-20

(Mil

lio

nto

nnes

)

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Table 2: Trends in Natural Gas availability in India (in Billion cubic meter)

Item 2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20 (April/Feb.)

Production (Net availability)1

39.75 34.57 32.69 31.13 30.85 31.73 32.06 27.93

LNG import (Long term, Spot)

17.62 17.80 18.61 21.39 24.85 27.44 28.74 30.81

Consumption2 (Net production + LNG import)

57.37 52.37 51.30 52.52 55.70 59.17 60.80 58.74

1 = Net production is derived by deducting gas flared and loss from gross production by producing companies.

2 = Includes internal consumption. Source: Petroleum Planning & Analysis Cell, Ministry of Petroleum & Natural Gas,

Government of India.

3.0 Crop Situation

3.1 Crop area sown – Rabi 2019-20

As per the 2nd advance estimates for rabi crops 2019-20 of the Ministry of Agriculture and Farmers Welfare, about 98.8 per cent of the normal area under rabi crops was sown. Area sown under all rabi crops taken together was about 62.52 million hectares (Mha) at All India level during rabi 2019-20 compared to 59.53 Mha, representing an increase of 5% over the corresponding season of the previous year.

Total area sown under food grains was 55.29 Mha during rabi 2019-20, which was 5.4% higher than the corresponding season of the previous year. Area sown under all major crops increased during the period. Area sown under wheat, rice, coarse cereals, pulses and oilseeds increased by 5.9%, 6.7%, 9.4%, 2.8% and 2.1%, respectively, during the period. The coverage under rabi crops in 2019-20 is shown in Table 3.

Table 3: All India Rabi Crop Situation – 2019-20 and 2018-19 Crop Normal

Rabi area (Mha)

Area sown during rabi

(Million hectares) Increase (+) / Decrease (-)

2019-20 (2nd Adv. Est.)

2018-19 (Final Est.)

Area (Mha) %

Wheat 30.558 31.049 29.319 1.730 5.9%

Rice 4.277 4.472 4.192 0.280 6.7%

Coarse cereals 5.981 5.044 4.611 0.433 9.4%

Total pulses 14.600 14.723 14.326 0.397 2.8%

Total food grains 55.416 55.288 52.448 2.840 5.4%

Total oilseeds 7.882 7.235 7.085 0.150 2.1%

All Crops 63.298 62.523 59.533 2.990 5.0%

Note: Totals may not exactly tally due to rounding of figures.

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3.2 Production of Food Grains and Commercial Crops: 2019-20 As per the 2nd advance estimates, total food grain production is estimated to have touched a record level of 291.95 million MT in 2019-20, 2.4% higher than the level of 2018-19. Production of most of other principal crops is estimated to have increased in 2019-20 except sugarcane and jute & mesta which is likely to slip downwards. Table 4 shows details of production of principal crops in 2019-20 and compares with 2018-19.

Table 4: Estimated production of principal crops in 2018-19 and 2019-20 (Million tonnes)

Crop 2018-19

2019-20 (2nd Advance est.)

Increase (+)/ decrease (-)

Quantity %

Rice 116.48 117.47 0.99 0.8%

Wheat 103.60 106.21 2.61 2.5%

Coarse cereals 43.06 45.24 2.18 5.1%

Pulses 22.08 23.02 0.94 4.3%

Total food grains 285.21 291.95 6.74 2.4%

Total oilseeds 31.52 34.19 2.67 8.5%

Sugarcane 405.42 353.85 -51.57 -12.7%

Cotton # 28.04 34.89 6.85 24.4%

Jute & mesta $ 9.82 9.81 -0.01 -0.1%

# = Million bales of 170 kg each. $ = Million bales of 180 kg each.

4.0 Procurement, Stock and Exports of Food grains

4.1 Procurement All India procurement of rice for kharif marketing season (KMS) 2019-20 is under progress. It was 43.72 million MT upto 6th May, 2020. The procurement of rice was highest in Punjab at about 10.88 million MT, followed by Telangana 5.06 million MT, Haryana 4.30 million MT, Chhattisgarh 3.97 million MT, Andhra Pradesh 3.82 million MT, Uttar Pradesh 3.79 million MT, Odisha 3.57 million MT, Madhya Pradesh 1.74 million MT, Tamil Nadu 1.51 million MT, West Bengal 1.49 million MT and Bihar 1.31 million MT. The procurement was less than 1 million MT in remaining rice growing states. Annex I shows the state-wise procurement of rice for the kharif

marketing season 2019-20 upto 6th May, 2020. All India procurement of wheat for rabi marketing season 2020-21 is under progress. It was only 20.37 million MT up to 6th May, 2020. Out of 20.37 million MT of wheat, procurement in Punjab was 10.02 million MT, followed by Haryana 4.77 million MT and Madhya Pradesh 4.45 million MT. The procurement was less than 1 million MT in remaining wheat growing states. Annex II shows the state-wise procurement of wheat for the Rabi marketing season 2020-21 upto 6th May, 2020.

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4.2 Food grain Stock Total stock of food grains in Central Pool improved considerably at the beginning of the year 2019-20. Way back in 2011 (As on 1st March), stock of food grains was 46 million MT which increased to about 55 million MT in 2012 and 63 million MT in 2013. It went down during subsequent years and reduced to 46 million MT in 2017. It moved up at 53 million MT in 2018, 67 million MT in 2019 and increased considerably to a high of 87 million MT in 2020. Figure 2 shows the changes in stock of food grains in Central Pool as on 1st March for last ten years.

4.3 Exports Figure 3 shows export of cereals during 2010-11 to 2018-19. During the past nine-year period, export of cereals was highest in 2012-13 at 22 million tonnes. Thereafter, it came down consistently with some improvement noticed in 2017-18, followed by marginal decline in 2018-19. Export of cereals was 13.52 million MT during 2018-19 as against 13.89 million MT in 2017-18. Out of 13.52 million MT of cereals exported in 2018-19, rice accounted for 12.01 million MT, wheat 0.23 million MT, maize 1.05 million MT and other cereals 0.23 million MT.

46.01

54.53

62.94 59.85

48.23 51.0646.44

52.81

67.06

87.23

0

10

20

30

40

50

60

70

80

90

100

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Figure 2: Stocks of food grains in Central Pool as on 1st March (Million tonnes)

0

5000

10000

15000

20000

25000

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19Rice Wheat Maize Other cereals

5691.8

11990.3

22104.021064.8

18439.0

Figure 3: Export of cereals - 2010-11 to 2018-19 ('000 MT)

12145.013891.2

11756.413517.5

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During the current year 2019-20, export of cereals upto December 2019 was 6.93 million MT. Out of 6.93 million MT of cereals, export in rice accounted for 6.40 million MT, wheat 0.16 million MT and other cereals 0.37 million MT.

5.0 Global Food Outlook 2019 The Food Outlook, November 2019 issue of FAO shows estimated global production of cereals and oil crops during 2018-19 compared with actuals for 2017-18 and forecast for 2019-20. World production of rice at 517.5 million MT in 2018-19 was up by 1.6 per cent over the previous year’s level. It reduced to 513.4 million MT during 2019-20, 0.8 per cent lower than the level of 2018-19. Much of this decline was outside Asia in Australia, Brazil, Nigeria and USA. In Asia, growth is expected to be higher in major rice producing countries except in China. Global production of wheat at 731.9 million MT in 2018-19, was 3.7 per cent lower than the level of the previous year. In 2019-20, it is anticipated at 765 million MT, 4.5 per cent higher than the level of 2018-19. Production recovery in the EU, and significantly higher production in top wheat producing countries, such as, the Russian Federation, Ukraine and the United States are expected to contribute to the anticipated increase in production. World coarse grains output at 1407.9 million MT in 2018-19 was down by 1.8 per cent over 2017-18. The production of coarse grain is estimated to increase by 1.2 per cent at 1425.5 million MT in 2019-20 over 2018-19. Bulk of the increase in production is expected from better harvesting of barley followed by marginal increase in maize. Barley production is expected to increase by 13.4 million MT. Maize production in Argentina and Brazil is expected to reach a record level offsetting a poor harvest in the United States. World oil crops production at 607 million MT in 2018-19 was up by 2.5 per cent over 2017-18. The preliminary forecasts for production of oil crops at 590.9 million MT during 2019-20 marks a decline of 2.7 per cent over 2018-19. After reaching an all-time high in 2018-19, global oilseed production is expected to contract for the first time since 2015-16 due to decline in soybeans and rapeseed. Soybean and rapeseed production is expected to decline significantly in the United States due to unattractive production margin and unfavourable weather conditions. Regarding rapeseed, uncertain export prospects contained plantings in Canada, while in the EU and Australia, harvests have been compromised by prolonged dryness. As for palm oil, global production could be slow due to a deceleration in area expansion. Yield prospects in Indonesia and Malaysia is expected to be modest. Table 5 shows the world food production of various crops during 2017-18 with estimates for 2018-19 and forecast for 2019-20.

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Table 5: World production of cereals and oil crops during 2017-18,

2018-19 (estimated) and forecast for 2019-20

Crop 2017-18 (million MT)

2018-19 (Estimated)

(million MT)

2019-20 (Forecast)

(million MT)

% change in 2018-19 over

2017-18

% change in 2019-20 over

2018-19

Rice 509.4 517.5 513.4 1.6 -0.8

Wheat 760.0 731.9 765.0 -3.7 4.5

Coarse grain 1433.7 1407.9 1425.5 -1.8 1.2

Total Cereals 2703.1 2657.3 2704.0 -1.7 1.8

Oil crops 592.1 607.0 590.9 2.5 -2.7

Source: Food Outlook – November 2019, FAO, Rome.

6.0 FAO Food Price Index

FAO food price index consists of 5 commodity group price indices, viz., cereals, sugar, vegetable oils, meat and dairy. The food price index has remained by and large low during past 5-year period compared to the prices prevailed during 2012 to 2014. The food price index was above 200 between 2012 and 2014. It plummeted to a low of 161.5 during 2016. Thereafter, it moved upwards and touched 171.4 in 2019. Figure 4 shows trends in FAO food price index from 2012 to 2019.

During the 1st quarter of 2020 (January/March), the food price index increased to an average level of 178.4.

213.3 209.8201.8

164.0 161.5174.6 168.4 171.4

0

50

100

150

200

250

2012 2013 2014 2015 2016 2017 2018 2019

Figure 4. FAO food price index(2002-04 = 100)

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II. Prospects for 2020-21

1.0 Rainfall 2020

1.1 Pre monsoon 2020 Pre monsoon rainfall from 1st March to 6th May, 2020 was 25% above normal. Actual rainfall for the country as a whole was 99.5 mm as against normal of 79.8 mm during the period. Among 36 meteorological sub-divisions, 29 received normal to excess rains and the remaining 7 received deficient rains. Out of 666 reported districts, 79 per cent received normal to excess rains during the period. 1.2 Prospects of South west monsoon 2020 India Meteorological Department (IMD) released its 1st stage forecasts on 15th April 2020. According to 1st stage forecasts, rainfall during South west monsoon 2020 is likely to be near normal (96-100%). As per IMD, Neutral El Nino Southern Oscillation (ENSO) conditions are prevailing over the Pacific Ocean and Neutral Indian Ocean Dipole (IOD) conditions are prevailing over the Indian Ocean. Some climate model forecasts indicate these conditions are likely to persist during the ensuing monsoon season. However, a few other global climate models indicate possibility of development of weak La Nina conditions over the Pacific Ocean during the second half of the season. IMD will issue the updated forecasts in the last week of May/ first week of June 2020 as a part of the second stage forecast. 1.3 Water reservoirs

Water storage in reservoirs is adequate. Total live storage capacity in 123 reservoirs monitored by Central Water Commission is 171.09 Billion Cubic Meter (BCM) at full reservoir level (FRL). Live storage in these reservoirs was 68.04 BCM as on 6th May, 2020 as against 41.68 BCM on the corresponding date in the previous year and 41.33 BCM of normal storage. Current year’s storage is 163% of the last year and 159% of the normal storage.

1.4 Crop prospects

With the prediction of normal monsoon and higher water availability in the reservoirs for kharif sowing, prospects of kharif crops are bright this year. According to the Ministry of Agriculture and Farmers Welfare, the area sown till 10th April, 2020 this year at 48.8 lakh hectares was much higher (+31%) than last year and even more than normal area of 41.8 lakh hectares.

2.0 Union Budget 2020-21

2.1 Thrust on Agriculture

The Union Budget 2020-21 was presented on 1st February, 2020. The budget proposed a number

of initiatives for agriculture & allied sectors, irrigation and rural development. Union Finance

Minister proposed 16-action points in the Budget 2020-21 to revive agriculture and link it with

allied sector to achieve the goal of doubling the income of farmers in next two years. Some of

these initiatives are listed below:

o Thrust on solar energy use in agriculture o Thrust on rural infrastructure o Movement of perishable farm produces by rail and air

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o Cluster approach to develop horticulture. One district – one product o Reforms in land leasing, agricultural produce marketing, livestock marketing,

contract farming and services, etc. o Modified Crop insurance scheme

2.2 Fertilizer subsidy

Estimated arrears of fertilizer subsidy was Rs 48,000 crore at the end of financial year 2019-20 in spite of payment of Rs.10,000 crore in March 2020 by way of loans from the banks through special banking arrangement.. After including arrears, the total requirement of subsidy is estimated at Rs.120,000 crore for 2020-21. Against this, the provision for fertilizer subsidy for 2020-21 is pegged at Rs. 71,309 crore for 2020-21. It is Rs. 8,689 crore lower than revised estimate of the previous year. Provision for indigenous urea has been reduced by Rs. 4,675 crore and for P & K fertilizers Rs. 2,865 crore. Details are given in Table 6.

Table 6: Fertilizer Subsidy – Budget provision and actual (Rs. Crore)

Item 2018-19 2019-20 2019-20 2020-21 (Actual) (Budget) (Revised) (Budget)

Urea Subsidy - Payment for Indigenous Urea 32189.50 43050.00 43050.00 38375.00 - Payment for Import of Urea 17155.36 14049.00 14049.00 12050.00 - Direct Benefit Transfer(DBT)

in Fertilizer Subsidy 6.97 10.00 10.00 10.00

- Recovery -2837.38 -3480.00 -3480.00 -2630.00 Net 46514.45 53629.00 53629.00 47805.00

Nutrient Based Subsidy - Payment for Indigenous P and

K Fertilizers 14820.35 15906.00 15906.00 14179.00

- Payment for Imported P and K Fertilizers

9260.00 10429.00 10429.00 9296.00

- Payment for City Compost 10.00 32.00 33.85 29.00 Total- Nutrient Based Subsidy 24090.35 26367.00 26368.85 23504.00

Total Subsidy 70604.80 79996.00 79997.85 71309.00

Source: Union Budget – 2020-21.

3.0 Policy Developments

3.1 Implementation of Nutrient Based Subsidy for P & K Fertilizers, revision in the NBS rates

for 2020-21 and inclusion of ammonium phosphate (14-28-0-0) under NBS scheme The Department of Fertilizers (DoF), Ministry of Chemicals & Fertilizers issued an O.M. on 3rd April, 2020 notifying the nutrient based subsidy rates for P&K fertilizers for 2020-21. In the complex grade fertilizers, ammonium phosphate (14-28-0-0) is included under NBS scheme. The revised NBS rates for P & K fertilizers are applicable from 1st April, 2020. The rates of NBS per kg of nutrient for 2020-21 compared with 2019-20 are given below.

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Nutrient NBS (Rs. per kg of nutrient) Increase/Decrease (Rs/kg of nutrient) 2019-20

(w.e.f. 7.8.2019) 2020-21

(w.e.f. 1.4.2020)

N 18.901 18.789 -0.112

P 15.216 14.888 -0.328

K 11.124 10.116 -1.008

S 3.562 2.374 -1.188

Accordingly, the per MT subsidy rates for DAP, MOP and SSP for 2020-21 compared with 2019-20 are given in the following table.

Fertilizer NBS (Rs. per tonne of product) Increase/Decrease (Rs/tonne of product) 2019-20 2020-21

DAP 10402 10231 -171

MOP 6674 6070 -604

SSP 2826 2643 -183

The per MT subsidy rates of NP/NPK fertilizers have reduced according to nutrient content in various grades. However, per tonne additional subsidy for fortified fertilizers with Boron and Zinc continued and remained unchanged at Rs. 300 and Rs. 500, respectively. A copy of the O.M. showing NBS rates for all P & K fertilizers for 2020-21 is enclosed as Annex III. 3.2 Domestic natural gas price for the period April/September 2020 Domestic natural gas prices fell consistently from second half of 2014-15 to first half of 2017-18. It declined successively from US$ 5.05 per MMBTU during November’14 / March’15 to US$ 2.48 per MMBTU during April/Sept’17. However, the falling trend reversed from second half of 2017-18. Domestic natural gas price increased to US$ 2.89 per MMBTU during October 17 to March 18. It further increased to US$ 3.06, US$ 3.36 and US$ 3.69 per MMBTU, respectively, during the subsequent half yearly periods. However, the price has been reduced significantly to US$ 2.39 per MMBTU for the period i.e. April/ September 2020. Figure 5 shows changes in domestic natural gas prices from November’14 to September’20 on half yearly basis.

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While the prices of domestic natural gas are lower than imported LNG, the production of gas from existing fields has been falling for more than five years. Consequently, supply of domestic gas to fertilizer plants has been declining. Share of domestic gas declined from 69% in 2013-14 to 30% in 2019-20. This has made fertilizer plants more and more dependent on imported LNG. Imported gas being more expensive than domestic gas, the cost of production of urea has been increasing. Farmers’ price (MRP) remaining fixed, it increases the urea subsidy.

5.054.66

3.82

3.06

2.5 2.48

2.89 3.063.36 3.69

3.23

2.39

0

1

2

3

4

5

6

Figure 5: Domestic natural gas prices on Gross Calorific Value basis (US$/MMBTU)

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Annex I

STATEWISE PROCUREMENT OF

RICE FOR KMS 2019-20

(Fig. in LMTs)

S.

No.

STATES/ UTs Procurement

1 A.P. 38.16

2 Telangana 50.64

3 Assam 1.00

4 Bihar 13.09

5 Chandigarh 0.15

6 Chhattisgarh 39.71

7 Gujarat 0.14

8 Haryana 43.03

9 H.P. 0.00

10 Jharkhand 2.06

11 J&K 0.10

12 Karnataka 0.00

13 Kerala 4.03

14 M.P. 17.40

15 Maharashtra 8.40

16 Odisha 35.72

17 Punjab 108.76

18 Rajasthan 0.00

19 NEF (Tripura) 0.09

20 Tamilnadu 15.06

21 U.P. 37.90

22 Uttarakhand 6.81

23 West Bengal 14.90

Total 437.15

Fig. as on 06.05.2020

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Annex II

STATEWISE PROCUREMENT OF WHEAT FOR RMS 2020-21

(Figures in LMTs)

S.

No.

STATES/ UTs Procurement*

1 Punjab 100.16

2 Haryana 47.65

3 U.P. 8.73

4 M.P. 44.46

5 Bihar 0.00

6 Rajasthan 2.36

7 Uttrakhand 0.18

8 Chandigarh 0.09

9 Gujarat 0.04

10 H.P. 0.01

TOTAL 203.68

*Under Progress. Data as on 06.05.2020

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Annex III

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