Indian Fertilizer Sector at A Glance

All India Demand Forecast of fertilizer products 

India is the second biggest consumer of fertilizer in the world next only to China.According working group report on fertilizer industry for twelfth five-year plan all India demand forecast of fertilizer 2012-13 to 2016-17 are given table.

Table:Demand forecast of fertilizer products (thousand tonnes) 2012-13 to 2016-17

Year	Urea	DAP	NP/NPKs	SSP	MOP*
2013-14	31192	11784	10577	4682	4343
2014-15	32029	12002	10861	5091	4492
2015-16	32858	12212	11142	5513	4643
2016-17	33677	12413	11420	5948	4793
2017-18	33754	12764	11841	6476	4934

*For direct consumption

Fertilizer Production, Consumption and Import Status

The Indian Fertilizer companies produced around 32.4 million tonnes of fertilizer in the year 2012-13 However, the total availability was short of demand and was met through imports. Of total fertiliser production, urea output increased to 22.6 million tonnes in FY12-13 from 22.0 million tonnes in FY11-12 due to better capacity utilization. While production of di-ammonium phosphate (DAP) output down 3.6 million tonne in FY12-13 from 4.0 million tones last year, output of NPK (nitrogen, phosphate and potassium) decreased 6.2 million tonnes in FY12-13 from 7.8 million tonnes in FY11-12.(As shown in Fig 1)

India has 30 manufacturing units of Urea with an Installed capacity of 21.6 million tonnes till 2013. There are 12 units of DAP producing plants with a combined capacity of 8.3 million tonnes. Complex fertilizers in the country have installed capacity of 6.4 million tonnes from 19 units. Highest number of fertilizer units in the country belongs to SSP. India has 85 SSP units with a combined production capacity of 7.7 million tonnes (As shown in Fig 2).

India is meeting 80 per cent of its urea requirement through indigenous production but is largely import dependent for its requirements of phosphatic and potassic (P & K) fertilizers either as finished fertilizers or raw materials. Its entire potash requirement, about 90 per cent of phosphatic requirement, and 20 per cent urea requirement is met through imports. 

In India , complex fertilizer is produced by public sector, cooperative sector and private sector players. Taking a closer look at the peroduction scenario of complex fertilizer in the country which has witnessed an overall negative growth for the period from 2008-09 to 2012-13, maximum fall in production by both cooperative and the private sector was witnessed between 2010-11 and 2012-13.

The entire requirement of around five million tonnes of potassic fertilisers would be met through imports as India does not have commercially viable sources of potash. With a view to make the nation self-sufficient in urea fertiliser, the Fertiliser Ministry has moved a proposal to boost investment in the sector.

During this first month of 2013-14 finacial year, India imported 6.8 million tonnes of urea valued at USD 1.92 billion. The cost of inward shipments was comparatively less during this year. Oman India Fertilizer Company (OMIFCO) is a joint venture between Oman Oil Company, Indioa Farmers Fertiliser Cooperative Ltd and Krishak Bharati Cooperative Ltd. In 2012-13, 1.83 MT of urea was from imported from OMIFCO.

Table: Consumption, Production and Imports of Fertilizers from 2000-2013 (thousand tons of nutrients) 

Year	Consumption				Production				Imports
	N	P	K	TOTAL	N	P	K	TOTAL	N	P	K	TOTAL
2000-01	109.2	42.2	15.67	167	109.6	37.43	-	147	1.54	3.96	15.41	20.91
2001-02	113.1	43.8	16.67	173.6	107.7	38.6	-	146.3	2.69	4.29	17.01	23.99
2002-03	104.7	40.2	16.01	160.9	105.6	39.04	-	144.7	0.67	1.7	15.2	17.57
2003-04	110.8	41.2	15.98	168	106.3	36.32	-	142.7	1.32	3.38	15.48	20.18
2004-05	117.1	46.2	20.61	184	113.4	40.64	-	154	4.11	2.96	20.45	27.52
2005-06	127.2	52	24.13	203.4	113.5	42.21	-	155.8	13.9	11.2	27.47	52.53
2006-07	137.7	55.4	23.35	216.5	115.8	45.18	-	161	26.8	13.1	20.69	60.58
2007-08	144.2	55.2	26.36	225.7	109	38.07	-	147.1	36.8	13.9	26.53	77.21
2008-09	150.9	65.1	33.13	249.1	108.7	34.64	-	143.3	38.4	29.3	33.8	101.5
2009-10	155.8	72.7	36.32	264.9	119	43.21	-	162.2	34.5	27.6	29.45	91.48
2010-11	165.6	80.5	35.14	281.2	121.6	42.23	-	163.8	44.9	38	40.69	123.6
2011-12	173	79.1	26.76	277.9	122.6	41.04	-	163.6	52.4	44.3	33.35	130
2012-13	168.2	66.5	20.62	255.4	121.9	35.41	-	157.4	35.1	26.3	11.78	73.08

Source: Department of Fertilizers

Government Subsidies on Fertilizers

In current financial year FY 2013-14 the subsidy bill would reach to Rs 67,971 crore. The government had increased the total fertiliser subsidy in the July budget at Rs 72,970.30 crore for the entire 2014-15 fiscal from Rs 67,970 crore proposed in the Interim Budget. Fertiliser subsidy paid to the companies has declined by about 41 per cent to Rs 21,300 crore as against Rs 36,000 crore paid in the corresponding period the previous financial year.

While the subsidy is fixed by the government in case of phosphate and potassic (P&K) fertilisers like Muriate of Potash (MoP) and Di-ammonia phosphate (DAP), companies are free to decide prices for others. In case of urea, a controlled commodity, the retail price is fixed at Rs 5,360 per tonne, and the difference between the cost of production/imported price is paid as subsidy to the companies.

Table: Government Subsidies on Fertilizer 

(In crores of Rupees)
	Actuals(2011-12)	Actuals(2012-13)	Actuals(2013-14)	Actuals(2014-15)
Indigenous(urea) Fertiliser	20208	20000	26500	36000
Imported (urea) Fertiliser	13716	15133	12044	12300
Sales of decontrolled fertilizer with concession to farmers	36089	30480	29427	24670
Total Fertilizer Subsidy	70013	65613	67971	72970

Source: Fertilizer Association of India

In addition to urea, 25 grades of P & K fertilizers namely di ammonium phosphate (DAP), muriate of potash (MOP), mono-ammonium phosphate (MAP), triple super phosphate (TSP), ammonium sulphate (AS), single super phosphate (SSP) and 18 grades of NPKS complex fertilizers are provided to farmers at subsidized prices under the Nutrient Based Subsidy (NBS) Policy.

Farmers pay only 50 per cent of the delivered cost of P & K fertilizers, the rest is borne by the Government of India in the form of subsidy. The Government has also included seven new grades of NPKS complex fertilizers under the NBS Policy. At present 25 grades of P & K fertilizers are under the NBS Policy. 

 

Top leading fertilizer Companies

Some of the public sector companies in India fertilizer industry:

• National Fertilizers Limited
• Fertilizers & Chemicals Travancore Limited
• Rashtriya Chemicals & Fertilizers Limited
• Madras Fertilizers Limited
• Steel Authority Of India Limited
• Neyveli Lignite Corporation Limited
• Paradeep Phosphates Limited
• Pyrites, Phosphates & Chemicals Limited
• Hindustan Fertilizer Corporation Limited

Some of the private sector companies in Indian fertilizer industry:

• Chambal Fertilizers & Chemicals Limited
• Ajay Farm-Chem Private Limited
• Balaji Fertilizers Private Limited
• Deepak Fertilizer and Petrochemicals Corporation Limited
• Bharat Fertilizer Industries Limited
• Coromandal Fertilizers Limited
• Gujarat Narmada Valley Fertilizer Co. Limited
• Meerut Agro Chemicals Private Limited
• Duncans Industries Limited
• Karnataka Agro Chemicals
• Godavari Fertilizers & Chemical Limited
• Shri Amba Fertilizers (I) Private Limited
• Tuticorin Alkali Chemi & Fertilizer Limited
• Gujarat State Fertilizers & Chemicals Limited
• Indo-Gulf Fertilizers & Chemicals Corporation Limited
• Southern PetroChemical Industries Corporation Limited
• Maharashtra Agro Industrial Development Corporation
• Zuari Industries Limited- Fertilizer Limited
• Mangalore Chemicals & Fertilizers Limited

Latest Aspects in Industry

• There is a lot of development going on to meet the demand of fertilizers in the country through indigenous production, self-reliance in design engineering and execution of fertilizer projects is very crucial. There are consultancies which organize themselves to undertake execution of fertilizer projects starting from concept/designing to commissioning of fertilizer plants in India and abroad.
• Many concepts have been developed to carry out research and development / basic research work by mutual understanding between industry and academic institutions, and even there is support from the Department of Fertilizers to sponsor research and development projects through the Indian Institutes of Technology, Delhi and Kharagpur under the Science and even other major institutions in the country
• The fertilizer plant operators are now in the position to absorb and assimilate the latest technological developments, incorporating environmental friendly process technologies, and are in a position to operate and maintain the plants at their optimum levels without any foreign assistance and on international standards in terms of capacity utilization, specific energy consumption & pollution standards.
• Indian fertilizer industry is carrying out de-bottlenecking and energy saving schemes for the existing plants to enhance the capacity and reduce the specific energy consumption per ton of product.
• Today India has developed expertise for fabrication and supply of major and critical equipment such as high-pressure vessels, static and rotating equipment, Distributed Control System (DCS), heat exchangers and hydrolyser for fertilizer projects.
• The most significant development/advancement made by the Industry is in the field of manufacturing of catalysts of various ranges by catalyst-manufacturing Organisations like PDIL. PDIL helps in implementing the schemes for enhancement of capacity and technological upgradation in their existing catalyst plant and other utilities at Sindri to compete in the International market.