Published on May 12, 2014

In the year 2013, the global economic growth of fertiliser industry had been quite inadequate, whereas in 2014 the growth of world economic activity was seen as recuperating. By the driven projected rebound in the developed economies, the economic activity is seen as a gaining impetus in the year 2014 and 2015. For the year 2014, both IMF and the Organisation for Economic Co-operation and Development (OECD) has projected a growth of 3.6% in global output and a year from 2015 economic expansion close to 4%. With the slowdown of growth in China towards 7% will affect many other countries especially the commodity exports. In the year 2014-15, highest growth rates have been projected in the emerging economies especially in India, China and Indonesia.

This year to apprehend the declining trend in sales, the fertiliser industry is pinning hopes on good weather, however, in the last consecutive years after striking a peak in 2011-12 the fertiliser sales have been on a downward trend. Moreover, in the year 2013-14 the total sales of nutrients plunged down by about 5% to 51.23 mt over last year, as per the interim estimates of the Fertiliser Association of India (FAI).

Last week, a special banking arrangement of Rs. 18,000 crore for fertiliser companies provided by the Finance Ministry was expected to take a call, which will be helpful for them to get subsidy dues before the full budget is presented in July. According to a senior Government official, the Fertiliser Ministry is seeking a special facility as the subsidy allocated in the Interim Budget for the months of April-July period has already been fatigued. For the year 2014-15, the Interim Budget had made a stipulation of Rs. 67,970.3 crore in the Budget out of which Rs. 28,000 crore was provided for the months of April-July for imported and indigenous and de-controlled fertiliser.

According to the industry experts, for the year 2013-14 agricultural year the sales of urea in India had increased by 1%, with a similar increase in domestic production. Moreover at the end of the first quarter, imports were lesser as stocks were haggard, ensuing in low urea stocks in India. Furthermore, major fertiliser producers Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) group was eying growth of its fertilizer marketing territory and also through attainment of scheming stake in Mangalore Chemicals and Fertilisers Limited (MCFL) on its product portfolio.
been exhausted, which is why the Fertiliser Ministry is
especially China, Indonesia and India.