AndhraNews.Net - India emerges as one of the largest fertilizer producers in the world

New Delhi: August 9, 2004

The increase in the fertilizer production capacity in the country has been rapid. As of now the country has achieved near self sufficiency in production capacity of Urea and DAP, with the result that India could manage its requirement of these fertilizers from indigenous industry. The installed capacity as on 31.03.2004 has reached a level of 119.98 lakh MT of Nitrogen and 54.20 lakh MT of Phosphatic nutrient, making India the 3rd largest fertilizer producer in the world. The rapid build up of fertilizer production capacity in the country has been achieved as a result of a favourable policy environment facilitating large investments in the public, co-operative and private sectors. This is indicated in the Annual report of the Department of Fertilizers, Ministry of Chemicals and Fertilizers.

The domestic fertilizer industry has attained the level of capacity utilization that compares favourably with others in the world. The capacity utilization during 2002-03 and 2003-04 was 87.2 % and 88.6% for Nitrogen and 72.8 % and 67% for Phosphate respectively. The capacity utilisation of the fertilizer industry is expected to improve through revamping, modernization of the existing plants and closure of unviable capacity of sick fertilizer units.

According to the report, the Department of fertilizers is in the process of formulating a long term fertilizer policy which will aim at phased deregulation of the fertilizer sector. A committee was constituted under the chairmanship of Secretary, Fertilizers, with representatives from the fertilizer industry, media and others to examine responses to the draft policy.

The availability of urea, which is the only fertilizer under price and partial movement control of Government, remained satisfactory throughout the Kharif 2003 season and Rabi 2003-04. DAP and MOP, the major decontrolled and decanalised fertilizers are freely imported . In Kharif 2003, 4.65 lakh MTs of DAP and 10.81 lakh MTs of MOP was imported.

Regarding joint ventures abroad, the report points out that due to constraints in the availability of gas, which is the preferred feedstock for production of nitrogenous fertilizers and the near total dependence on imported raw materials for production of phosphatic fertilizers, the Government has been encouraging Indian companies to establish joint venture production facilities, with buy back arrangement, in other countries, which have rich reserves of natural gas and rock phosphate.

Press Release: PIB

Clickz..

Asuku.com
Talk about Everything and Anything...

AndhraNews.com
The Andhra Pradesh Discussion Forum

ElectionsInfo.com
Coverage on Elections round the World