Fertilizer Industry

Rural Sector
 History
• 1960s - The cooperative sector in India was responsible
for the distribution of 70 per cent of the fertilisers
consumed in the country.
• A new cooperative society was conceived to specifically
cater to the needs of farmers
• Indian Farmers Fertiliser Cooperative Limited (IFFCO)
was registered on November 3, 1967 as a Multi-unit Co-
operative Society.
 Entry into Rural Sector
• The rural sector contributes 25 per cent of the
country's gross domestic product (GDP).
• The fertiliser industry was under complete
government control till 1992.
• Realising the importance of the rural sector, Indian
companies began taking steps to realign themselves.
• The fertiliser industry is subsidised as a large
majority of the Indian farmers lack resources to use it.
• The Indian government is now trying to do away with
this subsidy on fertilisers as the fiscal deficit of the
country has been rising
Main Players in the Indian Fertilizer
Industry
• Government owned Public Sector undertakings
• Cooperative Societies like IFFCO,KRIBHCO
• Units from Private sector
 Public Sector Companies

• 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
 Government Fertilizer Plan
• Government has been providing heavily subsidised
fertilizer for the last three years
• This has lead to agricultural decline due to the overuse of
urea
• Recognizing the policy failure, the government
announced an intended change in policy.
• Dharamsi Moraji closed some plants due to low
production levels and high costs.