Ministry calls for meeting on fertilizer shortage

The Ministry of Chemical compounds and Fertilizers has termed for an urgent meeting with the industry this 7 days to kind out the issue of fertilizer shortage in advance of the Rabi sowing period, which begins early subsequent month.

Even with federal government doubling subsidy, fertilizer companies hope even more rise in subsidy or de-control providing rates to instil confidence for importing large-charge uncooked product and provide offer back to normalcy.

In June, the Union Cabinet experienced elevated subsidies of DAP (Diammonium Phosphate) and other non-urea fertilizers by ₹14,775 crore. Nevertheless, DAP import rates have improved by $one hundred fifty a tonne because then and domestic producers want the subsidy to be improved by ₹400-five hundred for each 50 kg bag or enable industry to market at ₹1,seven-hundred in opposition to the prevailing cost of ₹1,200 a bag.

Low stock

DAP stock at the moment has more than halved to 1.five million tonne in opposition to 3.six mt held past 12 months across India. The stock of DAP in North India (Punjab, Haryana, UP, Rajasthan, Uk, Bihar, Jharkhand) has plunged to .7 mt in opposition to 2.1 mt past 12 months.

In accordance to Cellular Fertilizer Management Program details, the normal DAP consumption in the Rabi period in North India is about 3.five mt.

The stock of MOP (Muriate of Potassium) is down thirty for each cent at .seventy five mt this 12 months in opposition to 1.07 mt held past 12 months. MOP stock requires to be larger as it is the key uncooked product to generate NPK (Nitrogen, phosphorous and potash) grades.

Rabi need

DAP sales which includes imports at the buyer-finish for past rabi was sixty four.fourteen lakh tonnes (lt), while the yearly DAP sales were 109 lt. Imported MOP sales were at 18 lt past rabi whilst annually it was at 33 lt, stated a fertilizer firm executive.

Crops these as wheat, mustard, potato, sugarcane, maize have to have more fertilizer in northern and central states these as Punjab, Haryana, UP, Rajasthan, Madhya Pradesh, Bihar, Chhattisgarh, Jharkhand, Maharashtra, Gujarat and Karnataka, he additional.

Substantial charge

The rates of uncooked elements utilized for the manufacture of fertilizers has zoomed in past 6 months, posing a hurdle in the domestic offer of fertilizers.

Selling price of ammonia, 1 of the key uncooked elements, has improved by sixty five for each cent to $654 a tonne this month in opposition to $397 a tonne in March whilst phosphoric acid jumped 50 for each cent to $1,a hundred and sixty a tonne ($755 a tonne) in the exact same period of time.

With the rise in uncooked product rates MOP have jumped 25 for each cent to $280 a tonne in opposition to $224 in March. DAP cost has improved 70 for each cent to $675 a tonne.

Sabyasachi Majumdar, Senior Vice President, ICRA stated the restart of imports will depend on the federal government conclusion to possibly raise subsidy fees or enable the industry to freely resolve the retail rates for phosphatic fertilizers over the system of the subsequent 1 month.

“We estimate that the federal government to raise DAP subsidy in between ₹5000-6000 a tonne to retain retail rates at acceptable ranges for the farmers, he additional.