Published on November 3, 2014

Decontrol policy of government has been major concern for the Fertilizer industry in last few months. Natural gas prices have been hiked from USD 2.43 to USD 4.2. With this increased prices, government on other side has decided to reduce its subsidy for the urea manufacturers. Production of urea has become a difficult task for the manufacturers. Already burdened with increased gas prices and now reduction in subsidy has been huge setback. Government need to come up with some affirmative and positive outlook for the fertilizer industry.  PSU should be installed where there can get supply of as at reduced rates. It should look to start projects at foreign lands to make best use of lower prices and can make the projects viable. Domestic supplier of natural gas Reliance has already increased its cost for gas from 1 November itself. This in turn has affected the economics of the key user industries including power and fertilizer.

One of the leading fertilizer manufacturers of our country has announced its expansion plan at Thal plant. The company is planning to make an investment of Rs 4500 crore with expansion in its urea manufacturing capacity near Mumbai