Published on August 11, 2014

India is an agrarian country. Indian economy largely depends on its agricultural produce. Around 25%of GDP growth is attributed by agricultural industry. So by largely the Indian fertilizer has got very vital role to play in the growth of Indian economy. India’s demand for fertilizer has been increasing by many folds and has also created a stir of interest among foreign players.

The fertilizer industry was in state of worried past few months due to delay in monsoon coupled with scanty rainfall in many parts of the country. But with slow progress of monsoon country has been able to capture 70% of its annual rainfall. This has been big relief for the all the industries associated to agriculture.

There are certain issues which has always kept the Indian fertilizer industry in state of worry. Subsidy issues, gas pricing, urea pricing and ambiguity on investment policy are concerns which are on top of the list. Efforts made by government to clarify these issues will solve 80% problems of the fertilizer industry. Industry has enough potential but short of sincerity and political motives has kept the industry far away from growth and development. In a recent move agriculture industry has demanded for 50% hike in allocation of natural gas to the Urea industry in order to replenish the over headed cost of LNG. Due to short supply of natural gas urea plants were compelled to use CNG which again incurs high cost to the industry. The government has affirmed the ministry to take effective measure for the same.