Published on December 16, 2013

According to recent article, fertilizer sector has been one of the core sectors of our country and registered a growth of 4.1% which is a good sign as compared to last year. Government is trying to focus more on usage of organic fertilizer in farm land for the growth of business.

Southern Petrochemicals Industries Corporation Ltd. (SPIC) is planning to sell its electronic components subsidiary (SPEL Semiconductors) to Singapore based Natronix Semiconductors. This move is taken to release the funds to maintain its fertilizer business. The company is need to working capital to support its fertilizer business.

The industry was facing a serious liquidity problem it was constantly urging central government to allocate Rs.40, 000 crore to clear subsidy dues for the current financial year. As per FAI (Fertilizer Association of India), since August the government has not paid subsidy dues to fertilizer companies. Recently the Cabinet Committee on Economic Affairs approved the proposal of Fertilizer Ministry to provide Rs 5,500-crore subsidy to the cash starved fertilizer industry via a special banking arrangement. This will be a major relief to the liquidity starved fertilizer industry. Although the industry demanded quite high sum and this amount will not heal up the issues but will provide some relief. For now the industry is waiting for the winter crops as they expect good demand this year.