Page 152 - CW E-Magazine (11-6-2024)

Fertilisers

TRADE TRENDS

India’s fertiliser imports fall on higher local output

India’s imports of fertilisers in Saudi Arabia and the United Arab
2023-24 fell nearly 10% due to a boost Emirates.
in local production as the country,
which entirely depends on overseas The government has set 2025-26 as
markets for many types of crop nutri- the deadline by which the country will
ents, looks to achieve self-suffi ciency end all urea imports. This is aimed to
in urea, offi cial data showed. be achieved when fi ve new plants start
production. Plants at Gorakhpur in Uttar
The drop in imports was mainly on Pradesh, Ramagundam in Telangana
account of falling inbound shipments of and at Talcher, Barauni and Sindri are
urea by the world’s top importer of the tive (IFFCO) has sold about 3.3-million slated to together produce 6.5-million
fertiliser for three years in a row. The tonnes of locally produced nano urea tonnes of urea every year.
country also saw lower imports of DAP, worth about Rs. 7-crore between August
another crop nutrient. 2021 to February 2024. Imports of DAP, another key ferti-
liser, stood at 5.51-million tonnes,
Urea imports dropped 7% to 7.04 Urea accounts for about 70% of the down from 7.08-million tonnes, a drop
million tonnes due to a 20% jump in overall fertiliser subsidy bill. Lower of 22.2%. The lower imports of urea
domestic output to 31.4 million tonnes imports in 2023-24, however, did not and DAP were offset by higher inbound
in 2023-24, according to the data. reduce the overall fertiliser subsidy, shipments of Muriate of Potash, which
which touched nearly Rs. 2-lakh-crore, rose to 2.1-million tonnes from 1.3-million
Lower imports of urea also came higher than a revised budgetary alloca- tonnes, up 51%.
on the back of higher local production tion of Rs. 1.89-lakh-crore. It was mainly
of nano urea, a liquid form of the farm because of elevated prices of inter- Overall fertiliser consumption in the
chemical, as well as a move towards mediate goods and raw materials used country rose 2.6% to 60-million tonne
eco-friendly alternatives by farmers. in the production of fertilisers. India in 2023-24, according to data from the
The Indian Farmers Fertiliser Coopera- mainly imports urea from Oman, Qatar, fertiliser ministry.
OUTLOOK

Indian fertiliser industry to reach Rs. 1.38-lakh crore

by 2032

The Indian fertiliser industry is on FY24 was recorded at 45.2 million FY24, urea imports declined by 7 per-
a robust growth trajectory, expected to tonnes, refl ecting the Ministry of Ferti- cent, DAP by 22 percent, and NPKs
reach a market size of Rs. 1.38-lakh lizers’ successful policies. by 21 percent. The government aims
crore by 2032, with a Compound to achieve self-suffi ciency in urea pro-
Annual Growth Rate (CAGR) of 4.2 per- Government initiatives like direct duction by 2025-26 through increased
cent from 2024 to 2032, according income support schemes from both local production of nano urea.
to a new report by market research Central and State Governments have
agency, IMARC Group. In 2023, the also bolstered farmer liquidity, enhancing Additionally, the Paramparagat
Indian fertiliser market size stood at their ability to invest in fertilisers. The Krishi Vikas Yojana (PKVY) promotes
Rs. 94,210-crore. government has emphasised producing organic farming, offering Rs. 50,000 per
nano liquid urea domestically, aiming hectare for three years, with Rs. 31,000
The report said the growth has to stabilise fertiliser prices. directly allocated to farmers for organic
been driven by increased agricultural inputs. The potential market for organic
demands and strategic governmental India’s dependency on fertiliser and bio fertilisers is poised for expan-
interventions. Fertiliser production in imports has decreased markedly – in sion, the report noted.

152 Chemical Weekly June 11, 2024

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