Published on June 2, 2014
In the last two consecutive years after hitting a peak in 2011-12 the fertiliser sales had followed downward trend, although, this year the industry is broaching hopes on good weather to apprehend the moribund trend in sales. Besides over last year as per the interim estimates of the Fertiliser Association of India (FAI) in the year 2013-14 the total sales of nutrients had declined by about 5% to 51.23 mt. According the market overview, the Ministry of Chemicals and Fertilizers struggling to pay out subsidies, the Indian demand prolongs to remain under pressure, in addition to it with a budding weakening rupee and inadequate monsoons may possibly impact the fertilizer demand further.
As per the sources with the formation of the new government, it is all set to make the country self-reliant on fertilisers and the new Chemicals & Fertilisers minister Ananth Kumar who had taken in charge 28th May, 2014 stressed that the government also schedules to arouse all closed urea plants. He further said that petrochemical hubs have been schedule to set up in Assam, Orissa and Tamil Nadu to gain momentum and to make the country self-dependent on the widely used soil nutrient, the government will take all the necessary measures to revive the sick urea manufacturing plants. Furthermore with the formation of the new government, in the coming kharif season the new Chemicals & Fertilisers Minister assures the farmers that there will be no shortage of urea. As per the sources, nearly 22 million tonnes of urea is being produced by India whereas the annual domestic demand is about 30 million tonnes.
According to the news reports, in the year 2010 a Memorandum of Understanding (MoU) was signed among India and Ghana to set up the urea plant at Shama district in western Ghana with an initial capacity of 1.2 million tons/annum, however, a fertiliser plant in Ghana has been scheduled to set by the state run Rashtriya Chemicals and Fertilisers (RCF) with an investment of around USD 1 billion as the West African nation has deprived of guaranteed supply of gas. Moreover since 2007-08 in the country the domestic urea production has remained stagnant at 22 MT whilst the current demand is about 30 MT and in last 13 months no new urea capacity has been added in India.
