Published on April 21, 2014
For the fiscal year 2014-15, the fertiliser subsidy has been estimated to rise by Rs. 90,000 crore which is more by 30% than the estimate made in the interim budget. Based on the adjourned from the current fiscal and new demand for subsidy, industry experts prepare the estimate. As per the researched report, for the year 2014-15 the demand outlook for the fertiliser industry has been noted to remain optimistic.
However, facing continuance significant challenges and uncertainties, especially the gas price hike front the industry is in the rancid with a sluggish recovery. According to ICRA, the demand outlook for 2014-15 appears to be better with a great deal of amount of channel inventory having got cleared, moderately due to liquidity pressures facing the industry.
Moreover, as per the estimate made by the research in year 2014-15 the overall volume growth will be relatively moderate with imports of non-urea fertilizers anticipated to rise by 15%-20%, even though the overall volumes may not cross 2012-13 levels.
The subsidiary of the leading fertiliser cooperative Indian Farmers Fertiliser Co-operative Ltd (IFFCO) received acquiescence from the provincial government of Quebec to set up a USD 1.6 billion urea plant on 19th April 2014. On 26th March, 2014 the decision was taken by the cabinet of the Canadian province.
According to the industry experts, the proposed facility will have a production capacity of up to 1.6 million tonnes of urea and 760,000 tonnes of diesel exhaust fluid (DEF). As per the interim budget for 2013-14, ICRA Research noted that for the year 2014-15 the subsidy provisioning were at Rs. 68,000 crore, which would be to a large extent lower than the estimated requirement of about Rs 1.1 lakh crore.
In the fiscal year 2015, a sluggish recovery is in the rancid for the fertiliser industry and as per the ICRA report, 2014 fiscal year was noted as the year of evolution for the key industry as well as stakeholders predominantly in the non-urea segment. Furthermore in the next fiscal year the imports of non urea fertiliser are expected to raise by 15-20% and as per the ICRA Research, the 2015 fiscal year estimates a relatively moderate overall growth even though the volumes by and large may not cross FY 13.
The bio-pesticides marketplace in the next five years has been considerably estimated to rise and reach revenue worth Rs. 21300 million by FY 2018. According to the researched report, during the period FY 2014 – FY 2018, India pesticides industry has been projected to attain Rs. 229,80 crore 14.7% CAGR.
