Fertiliser Industry Round Up (25/8/14 to 30/8/14)

Published on September 1, 2014

India which is noted as the fourth largest producer of agrochemicals after the US, Japan and China, however in compare with the global average of 3 Kg/ha the domestic consumption in the world is amid the lowest at 0.6 Kg/ha, according to the researched report. Furthermore, expressing concern over weakening soil health in the country, the ministry of the Fertiliser Minister Ananth Kumar would urge on banning the use of insecticides and pesticides, which impairment the nature and thrust for greater use of bio-fertilisers by farmers.

As per the sources, at the 4th National Conference on Agrochemicals 2014 the Minister for Chemicals & Fertilizers Ananth Kumar had said that new holistic fertiliser policy has been proposed by the government for the country, with an aim to attain sustainable growth in production of food and integrate overall best practices in fertiliser usage. To frame such a policy in next to no time, a squad of experts in the field will be constituted, which may perhaps provide for a national platform for farmers to use bio-fertilisers.

Moreover for assigning more gas to boost the production of fertiliser in the country the ministry of the Minister for Chemicals & Fertilizers is following it up with the Ministry of Petroleum and Natural Gas, even while calling for improved research and development (R&D) in the field of bio-fertilisers. Also the ailing and closed fertiliser units in the public sector will be revived by the ministry.

On 27th August, 2014 three fertilizer manufacturers in the South were allowed by the Cabinet Committee on Economic Affairs to produce urea using naphtha as feedstock, as per the sources. Moreover using naphtha these three fertilizer manufacturers – Mangalore Chemicals and Fertilizers Ltd (MCFL), Southern Petrochemical Industries Corporation (SPIC) and Madras Fertilizers Limited (MFL) can produce urea for another three months. However according to the industry experts due to the protest from farmers in laying gas pipeline in Tamil Nadu these fertilizers companies were unable to convert to gas from Naphtha.

According to the industry experts, for ensuring cheaper supply to farmers the Centre runs a subsidy bill of over Rs 75,000 crore, also fertiliser is noted as a highly subsidised commodity and on fertiliser the government provides 75% subsidy.


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