Published on October 20, 2014

Indian fertilizer industry has slightly improved marginally post monsoon. Although consumption has decreased a little in this year due to irregular and inconsistent monsoon throughout India. According to research conducted by ICRA, many regions of north India, which is known for 100% crop output, has declared to be drought hit area. This belt includes parts of Punjab, Haryana, Bihar and several other districts of UP. The industry expected healthy growth of 5-7% this year. Further the industry is concerned with new government’s sentinel for urea and natural gas plants.

An important policy has been drafted on natural gas by the central government and awaited for prime minister’s consent. The government will approve a new domestic natural gas pricing policy with modified pricing formula. As per this policy prices for natural gas will go up from current level of $4.2 per million British thermal units (mmbtu)to $5.61per mmbtu. Several accredit ions has been taken under consideration before making this final policy. The new formula will be applicable from 1 November 2014. The new pricing will be now available for the national oil companies. Again here it has been decided that the revised price and deference price would be credited the gas account maintained by GAIL India.