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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.