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Presentation No. 8 on Fertiliser Sector. Status. India is the second largest consumer and third largest producer of fertiliser in the world. India consumed 54 million tonnes and produced 38 million tonnes fertiliser products in 2012-13.
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Status • India is the second largest consumer and third largest producer of fertiliser in the world. • India consumed 54 million tonnes and produced 38 million tonnes fertiliser products in 2012-13. • India has large manufacturing base with 33 urea plants, 19 NP/NPK plants and about 90 SSP plants.
Fertiliser Supplies – Import Dependence India’s dependence on imports (Per cent)
Status • Capacity and efficiency of Indian urea and NP/NPK plants is of world scale. • India does not have process technology but has indigenous fabrication & Engineering capabilities. • India has some strength in production and R&D of catalysts.
Benchmarking Energy Efficiency of Ammonia Plants-2010-11 Source : FAI and Nitrogen +Syngas , Vol. 325, September-October 2013
Regulatory Environment • Indian fertiliser industry continues to operate in highly regulated environment. • MRP and movement of fertilisers are controlled. • Stifling controls and micromanagement of industry have rendered the sector unattractive for investment.
Impact of Regulatory Environment • The industry is not able to generate surplus funds for capital investment/ modernization/innovation. • Payment of Industry dues are abnormally delayed. • Imbalanced use of plant nutrients.
Ensuring Fertiliser Security • India can achieve self sufficiency in production of nitrogenous fertiliser provided priority in allocation of domestic gas is restored. • India needs an investment fund to acquire resources abroad for phosphatic & potassic fertilisers.
WayForward • Industry should be freed from the task of reaching the fertiliser subsidy to 130 million farmers. • Industry be allowed to operate in free and competitive environment. • R&D in the area of catalysts for ammonia and sulphuric acid plants needs to be strengthened. • Mechanism and funding of R&D programme be strengthened.
WayForward Improving Fertiliser Use efficiency Package of agricultural practices suited to diverse agro-climatic conditions. Innovative Fertiliser Products Customized, specialty and liquid fertilisers, fertilisers fortified with micro-nutrients. Coated fertilisers for slow release properties Bio-fertilisers and organic matter
WayForward Improving fertiliser quality control mechanism. Focus on skill development and training.