What is DOF’s role in movement of urea fertilizer in India?

The Department of Fertilisers (DOF) advise all State Governments to assess the requirement of fertiliser in their state – agriculture season wise (Kharif and Rabi). The State Government collects the full data on micro level i.e. block & district level, according to their cropping patterns and cropped area targets and a consolidated demand is put before the DOF. The DOF also collects the production plan of each & every urea manufacturing units and compiles the total indigenous / domestic urea production data on annual, season and monthly basis. The DOF, based on total production and total estimated demand, determines the shortfall between the requirement and availability and estimates the urea to be imported every year.

The Department of Fertilisers (DOF) also organises Zonal Conference twice a year for Kharif (April to September) in the month of Feb / March and for Rabi (October to March) in the month of August / September. Based on the state wise urea plan proposed by companies / data collected, the Department of Fertilisers makes zone wise state wise company wise ECA (Essential Commodity Act) allocation of urea fertiliser to be produced / dispatched by the indigenous urea manufacturer. The entire allocation process is completed well before the commencement of each agriculture season.

The Department of Fertilisers (DOF) gives ECA allocation for 50% of production projected by the individual urea manufacturing units / companies for the agriculture seasons. For the remaining 50% of production (Non-ECA quantum), Department of Fertilisers gives choice to the producer to propose their distribution plan within their marketing area on a monthly basis. The DOF reviews the producers’ proposed distribution plan of Non-ECA quantity, on monthly basis, and based on demand & availability situation, the DOF approves and issues a Movement Supply Plan (Company wise, State-wise & District-wise Company wise).

In essence, Govt. of India through The Department of Fertilisers (DOF), ensures that fertiliser is made available across the country and throughout the year to ensure that there is no shortage / surplus urea available in a particular market. Government also ensures that all the products manufactured / imports by indigenous manufacturers / importers is sold in Indian markets through ECA allocation and movement systems and becomes eligible for subsidy reimbursement.