Published on November 24, 2014

In the fertiliser sector the addition of global capacity might not only subordinate the cost of raw material costs for Indian fertiliser producer but will also facilitate the government to engrave its subsidy burden. According to IFA, at an advanced stage of development an expansion projects adjacent to 200 for fertiliser raw materials, relating with reference to USD 110 billion in investments.

Moreover, an upcoming project in countries like Saudi Arabia, Brazil, Morocco, China, Russia and Russia has been scheduled to become operational in the next four to five years.

According to the industry experts, to manufacture fertilizers the country has been facing a paucity of raw materials such as phosphate resources, moreover for India any capacity toting up of these basic raw materials globally is a good development. Nevertheless in the international market, an improvement in global supplies could bring down their prices and help the government to subordinate its import bill and facilitate the fertiliser companies pass on the reimbursement to farmers through affordable prices.

As per the researched report, around 14 million ton of finished fertilizers are being imported by India and around 12 million tons of raw materials. Moreover, around 90% of its prerequisite of Phosphates that is the complete potash demand and requirement of urea around 25% is being imported by India. However as the latest report of IFA, over next five years a large part of DAP capacity expansion are earmarked for exports.

According to the sources, in the second quarter of 2014 a major Indian producer of inorganic and organic fertilizers and industrial chemicals National Fertilizers Limited have posted a strong set of earnings and has also accounted an enhancement in sales from urea business that has led to better bottom-line and margin performance.