Indian Fertilizer Industry promoted by bharatbook

Released on: June 25, 2008, 9:34 pm

Press Release Author: bharatbook

Industry: Chemicals

Press Release Summary: The Indian fertilizer industry has come a long way since its
early days post independence. India today is one of the largest producer and
consumer of Fertilisers in the world.

Press Release Body: Indian Fertilizer Industry promoted by bharatbook

The Indian fertilizer industry has come a long way since its early days post
independence. India today is one of the largest producer and consumer of Fertilisers
in the world. India's production in terms of nutrients (N & P) reached a level of
155 lakh MT in 2005-06 from 0.39 lakh MT in 1951-52. Similarly, consumption of
fertilizers in terms of nutrients (NPK) has also grown from about 0.66 lakh MT in
1951-52 to nearly 184 lakh MT in 2004-05. The Indian Fertilizer industry, given its
strategic importance in ensuring self- sufficiency of food grain production in the
country, has for decades, been under Government control. The Government has over the
years, provided subsidies/concessions through the fertilizer companies to farmers
and the manufacturers have been compensated through various schemes. Though the
Government control helped in meeting the objective of ensuring creation of
capacities and ultimately achieving self-sufficiency in food grain production, it
did not encourage improving efficiencies in the sector. With the burgeoning subsidy
bill and the need to focus on fiscal prudence, Government polices in recent times
are aimed at encouraging efficiencies in the sector. Policy measures like the new
pricing scheme have made the operations of less efficient players unviable. The
Government polices today are oriented towards achieving the stated objective of
total deregulation in the sector. However, the uncertainty over exact policy
parameters and absence of a comprehensive long term policy has not augured well for
the industry. For instance, the financial year 2006-07 began with practically no
clarity on the policy parameters for both nitrogenous and phosphatic fertilizers.
The policy parameters for third stage of the new pricing scheme for urea which was
to be implemented from the beginning of the current financial year (FY07) are yet to
be announced and the implementation of the Prof. Abhijith Sen Committee report on
phosphatic fertilizers is also pending. The uncertain policy environment has also
not encouraged any major investments in domestic capacity. Another important issue
confronting the sector is with respect to the feedstock. Natural gas which is the
main feedstock for production of nitrogenous fertilizers is available in limited
quantities and the industry competes with the power sector for its share. With the
Government policy favouring conversion to gas based units, the demand for gas is
only expected to go up in the future, which may in turn lead to further shortages.
Similarly, in the case of phosphates, on account of the limited availability of
phosphoric acid and rock phosphate in the country, domestic units are dependent to a
large extent on imports. In view of the limited availability of the main feedstock
within the country, fertiliser companies today are exploring the possibility of
setting up joint ventures abroad to tie up their feedstock requirements. Though a
few joint venture agreements have been signed with respect to supply of phosphoric
acid, only a couple of joint ventures have been established with respect to urea.
Domestic players have also not been able to enter into long term gas supply
agreements primarily due to differences over pricing.

Table Contents

1.1. Overview of the Industry
1.2. Rationale for Fertiliser usage
1.3. Type of Fertilisers


2.1. Fertiliser consumption trends
2.2. Region wise consumption
2.3. Seasonality of consumption
2.4. Intensity of consumption
2.5. International comparison

Capacity: Primary nutrients (N & P)

3.1. Sector wise distribution of capacity
3.2. Region wise distribution of capacity


4.1. Fertiliser production
4.2. Regional imbalances in production and consumption

Production & Growth in Capacity: Urea

5.1. Capacity and utilisation
5.2. Feedstock wise distribution of capacity
5.3. Sector wise distribution of capacity
5.4. Major players in the Nitrogenous fertiliser industry - Urea

5.5. Joint ventures in Nitrogenous fertilisers

Production & Growth in Capacity: DAP & SSP

6.1. Capacity and utilisation - DAP
6.2. Major players in the Phosphatic Fertiliser industry - DAP
6.3. Capacity and utilisation - SSP
6.4. Joint ventures in Phosphatic Fertiliser industry


8.1. Ammonia
8.2. Urea
8.3. Phosphoric acid
8.4. DAP
8.5. Technological Developments in Indian Fertiliser Industry

Fertiliser Pricing and Distribution

9.1. Pricing
9.2. Marketing
9.3. Status of Implementation of various measures

International Scenario

10.1. Production and consumption of fertilisers
10.2. International prices

Feedstock Scenario

11.1. For Urea
11.2. For Other Fertilisers

Current Fertiliser Scenario


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