Published on July 14, 2014

India is a country where 40% of its population is directly or indirectly dependent on agriculture for their survival. At present country is facing the tough situation due to scanty rainfall. Most of the country has not received its annual rainfall yet. In the midst of all these worries and confusion, union budget 2014-15 was released last week. The government has proposed a new plan for subsidy provided on the Urea. Industry welcomed the government policies with mixed response. It was essential to remove disparity among Urea and other fertilizer in terms of subsidy.  But nothing has been cleared on the issue of repayment of outstanding subsidy. The main issue which has created big hassle for the fertilizer industry is delay in the payment of subsidy which remained untouched in this budget.

One of the leading fertilizer company of country, Madras Fertilizer Ltd.(MFL) is planning to start a new urea plant. The plant will incur investment of around Rs.4500 crore.  Company has given its proposal to the central government and is waiting for its nod. Company is ready to go for joint venture and will provide its land as equity and will ask the other partners to make rest of the investment.

With stability is rupee against dollar and decline in the prices for aromatic compounds due to correction in oil prices has kept the sector on steady mode. Most of the chemicals, like C9, Mixed Xylene, IPA prices have shed its overrated prices. Availability of inventories at the ports has also led to declined in the prices.