Fertilizer stocks depleting in India due to fall in imports

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Fertilizer stocks depleting in India due to fall in imports

Fertilizer stocks depleting in India due to fall in imports

The recent fall in imports has led to depletion of fertilizer stocks in India.

The data of the Department of Fertilizers shows that there has been a decline in the stock of Di-Ammonium phosphate (DAP), Muriate of Potash (MOP) and other major non-urea fertilizers. The current shortage in stocks raises serious concerns about their availability in the upcoming Rabi season.

The rise in international prices has led to a fall in imports. In addition, the maximum retail price (MRP) fixed by the government for the sale of fertilizers discourages imports, as it neither brings profit nor loss to the companies.

Fertilizer policies announced by the government

  • New pricing scheme applicable for urea: Under this, the difference between the cost of production and the selling price/MRP is paid to the manufacturers as subsidy/concession.
  • Neem Coated Urea Policy: Under 2015, it has been made mandatory for domestic fertilizer companies to “neem coated” at least 75 per cent of their urea production.
  • Nutrient Based Subsidy (NBS) Policy for Phosphatic and Potash, 2010: Under this, the government fixes the annual subsidy based on the weight of various macro/micro nutrients contained in the fertilizer.
  • City Compost Policy, 2016: Under this policy, a provision of assistance of Rs 1,500 per tonne City Compost has been made to fertilizer companies for marketing and promotion of City Compost.

India’s fertilizer consumption in FY20 was around 60 million tonnes, of which 55 per cent was urea. It is expected to grow by 5 million tonnes during FY21.

The total domestic fertilizer production stood at 37 million tonnes as of March 2021. Of this, the production of urea was 21 million tonnes and the remaining 23 million tonnes was imported.

Source – The Hindu

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