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7c RM Fertilizers Etc
7c RM Fertilizers Etc
Straight fertilizers:
Nitrogenous:
Ammonium sulphate
Urea
Calcium ammonium nitrate
Phosphatic:
Single super phosphate
Triple super phosphate
Compound or Complex Fertilizer:
DAP – Di-ammonium-phosphate
NPK – fertilizer mixture in various proportions depending on
crops & regions
Marketing Fertilizers
Govt Regulations:
Essential Commodities Act
Fertilizer Control Order
Fertilizers to be marketed only by generic names
and not by trade or brand names
Companies add their name to the generic name
and also use logo on packages and
advertisements
Under the above the Govt can restrict distribution
of a company’s products in certain regions
The package shall specify the % of N, P or K
Urea: 46%N; Ammonium Sulphate: 26%N
Marketing Fertilizers
Approx Consumption Fertilizer Consumption
per annum: In ‘000 tonnes
Nitrogenous 24,000
Phosphatic 21,000
Potassium 7,000
Total 52,000
Marketing Fertilizers
Apex level Apex level Private
Coop Fed Agro Ind Corp Marketing Cos
Taluk Level
Retailers
Society
Private Trade
FARMERS
Marketing Fertilizers
Supply:
Domestic Production
Imports
Critical Issues:
Pre-seasonal stocking
Meeting peak seasonal requirement
Demand factor:
Type of crop sown
Area under cultivation
Irrigation methods
85% consumption concentrated in 200 districts
Pricing: Subsidised by Govt
Fertilizer Consumption in
Different Countries (Kg/Hectare)
Country N P K Total
Pakistan 92.7 18.3 0.7 111.7
Bangladesh 106.0 19.4 15.2 140.5
China 164.3 17.6 24.8 256.7
Egypt 295.2 35.2 6.8 337.2
Japan 97.0 114.6 77.9 289.5
UK 204.5 58.5 67.4 330.4
Korea 236.1 98.4 123.0 457.6
India 56.0 21.1 8.4 85.5
Fertilizer Industry
• India is the 3rd largest producer & user in the world
• Installed capacity / production as on 1.04.2018:
•Nitrogen: 20.7 millionMT / 24.3 millionMT
•Phosphate: 8 millionMT / 8.7 millionMT (DAP+SSP)
•Potassic fertilizer is not manufactured in India; it is imported
• Urea imports: 6 millionMT
• Phosphate imports: 4.2 millionMT
• MOP (Muriate of Potash – KCl) imports: 4.7 millionMT
Fertilizer Industry
• 62 large sized units
•32 units produce urea
•21 units DAP and complex
•7 units low analysis straight nitrogen
•2 units produce ammonium-bi-sulphate as byproduct
• 110 small & medium sized companies producing single
super phosphate (SSP)
Fertilizer Industry
•Investment costs:
•Urea: Rs 2000 crores for 1 million ton capacity
•DAP: Rs 800 crores for I million ton capacity
•Feedstock:
•Urea:
•60% Natural gas
•30% Naptha
•Due to feedstock restrictions JVs in:
•Senegal by GOI+IFFCO+SPIC to produce Phosphoric acid and
Phosphates: 5.5 lakh tons
•Jordan by SPIC+IFFCO+Jordan Phosphate Mines+Arab Investment
Company– Phosphoric acid – 4.8 lakh tons
•Morocco by Chambal Fertilizer+Moroccan company- phosphoric acid
– 4.25 lakh tons
Fertilizer Industry
•Other JVs:
•Oman: IFFCO+KRIBHCO+Oman Oil – 16.5 LMT
urea + 2.5 LMT Ammonia
•Dubai: Spic (Mauritius)+MCN Investment Corpn
USA – 4 LMT Urea
•GOIndia+IFFCO+KRIBHCO+GOIran – 7.26 LMT
Urea and 0.74 LMT Ammonia
• Tunisia: GST (Tunisia)+GSFC+Chambal Fert –
3.6lakh tons of phosphoric fertilizers
Potassium Imports
• Imported as MOP – Mauriate of Potash
• 100% imported from
• Canada 23%
• Russia 22%
• CIS+Belauras 15%
• Israel 15%
• Jordan 11%
• Lithuania 10%
Agro-Chemicals
• India is 4th largest producer of agro-chemicals in
the world at Rs50000 crores
• India is the largest exporters of agro-chemicals at
$ 2.2billion
• Crop protection:
• Insecticides (53%), herbicides (24%), fungicides (19%) and
rodenticides & others (4%)
Marketing Agro-chemicals
Regionwise proportion of area and agro-
Classification: Chemicals consumption
Insecticides (53%) Region Proportion of Proportion of
Fungicides (19%) Area to total consumption
Rodenticides area (%) to total
Herbicides (24%) consumption
Fumigants (%)
There are 50 South 21 50
manufacturers
10 manufacturers West 30 20
account for 80% sales
North 32 15
AP, WB, UP, TN, Mah,
Punjab & Guj account East 17 15
for 70% sales..AP 25%
Marketing Agro-chemicals
Usage pattern: Crop % Area %
Under the consumption
Distribution: crop
Company Cotton 5.0 52.5