Published on June 30, 2014

The new government completes its one month in office. With certain strong decisions, government has marked a complete shift from the UPA style of governing. The government has decided certain sectors which tops its priority list and has been working on its improvement and enhancement. Fertilizer is one of such industry which tops the rank in its priority list. The Prime Minister has asked its ministers to take immediate steps for pending and semi completed projects in specified time period. Completion on time and immediate and quick decision making policy has to the baseline for the new projects.

With acute rains in the month of June, government is planning its back up plans for the country in the case for monsoon failure. According to ministry, cabinet has prepared a note to help farmers with subsidized diesel to its machinery for standing crops and cheaper loans for seeds. Already committee has been formed to look after the drought like situation.

In an important decision government has stopped its supply of natural gas to Deepak fertilizers and has diverted all its supply to NFL. By this step government will be saving Rs.700 crore paid as subsidy annually. Reason stated behind this stoppage is that govt. supplies natural gas only to those units which are manufacturing urea which is a subsidized nutrient not to those which are manufacturing market priced crop nutrient.

The prices for the chemicals used in Fertilizer industry witnessed hike for this week. Oil crisis led to rise in the crude prices. This in turn has affected prices for all the crude related products. Prices have already increased in the domestic as well as international market. Market participants believe that monsoon will be seen prominent in the month of July and the market will get some relived.