Professional Documents
Culture Documents
Presentation On Fertiliser Industry of India
Presentation On Fertiliser Industry of India
Presentation On Fertiliser Industry of India
INDUSTRY OF INDIA
Presentation outline
Introduction
Global production and consumption of fertilizers
Indian fertilizer industry
Indian production ,consumption & import trend.
Major companies
Policies (subsidies & regulations)
Strategies for industry expansion
INTRODUCTION
India is the third largest producer and consumer of fertilizer in
the world.
0.7, 42%
india
global average
0.95, 58%
Indian
production,
consumption & import
trend
Fertilizer use and crop production
in India
Figure 2: Crops wise consumption of Fertilizer in India
Others
24% 5%
8%
Fruits
3%
2%
9%
5%
Vegetables
3%4%
4%
Cotton Rice
2.00%3%
5% Wheat
Sugarcane Food Grains
Rice
5%
37% Pulses
Oil Seeds
Oil Seeds
9% Sugarcane
Cotton
Rice 37%
Puls es Vegetables
Wheat 24%
3% Fruits
Food Grains 8%
Pulses Food Grains
3% Others
8%
Oil Seeds 9%
Sugarcane 5%
Wheat
Cotton 3%
24%
Vegetables 4%
PRODUCTION AND IMPORT OF FERTILISERS(IN '000'T)
PRODUCTION AND IMPORT(IN
12000
10000
N Production
'000 TONNES)
8000 N Imports
P2O2 Production
6000
P2O2 Import
4000 K2O Production
K2O Import
2000
0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
YEARS
CONSUMPTION OF CHEMICAL FERTILISER( LAKH TON)
160
CONSUMPTION IN LAKH
140
120
100 Nitrogenous(N)
TON
80 Phosphatic(P)
60 Potassic(K)
40
20
0
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
YEAR
"000" tonnes
an
1000
1500
2000
2500
3000
0
500
dh st
ra at
es
pr
ad
es
h
pu
nj
ta ab
m
iln
ad
u
ha
ut ry
ta an
rp a
ra
de
sh
bi
ka har
r
m nat
a
states
ah
ar ka
as
ht
ra
m
"N" consumption
ad
hy guj
ap ra
ra t
de
ra sh
ja
w st
es han
tb
en
ga
l
2007-08
2006-07
p consumption
900
800
p consumption (000 tonnes)
700
600
500 p2o5(2006-07)
400 P2O5(2007-08)
300
200
100
0
states
"k" fertilizer consumption
900
800
700
"000" tonnes
600
500 2006-07
400
300 2007-08
200
100
0
states
consumption of
N,P,K(kg/ha)
100
120
140
0
20
40
60
80
1951-52
1957-58
1961-62
1965-66
1969-70
1973-74
1977-78
1981-82
years
1985-86
1989-90
1993-94
1997-98
2001-02
2005-06 (P)
consumption of N,P,K(kg/ha)
consumption of N,P,K(kg/ha)
andhra pradesh
% shares of consumption of fertilizers in 2006-07
punjab
tamilnadu
7%
1% 12% haryana
5%
uttar pradesh
6% 8% bihar
7% karnataka
6%
maharashtra
6% gujrat
11%
madhyapradesh
7% 19% rajasthan
5%
west bengal
assam
30
20 production million MT/annum
10
0
years
Fertilizer subsidy
In both developed and developing countries.
Objectives-
Self sufficiency
making available fertilizers to farmers at affordable
prices and to promote balanced application of
three main fertilizer nutrients viz. nitrogen,
phosphorus and potash.
To encourage domestic production by allowing
fertilizer producer a reasonable returns.
Trends in fertilizer subsidies
Retention price cum subsidy scheme
Fertilizer control order,1985
Nov 1977-nitrogenous fertilizers
Feb 1979-complex fertilizers
To encourage green revolution
Subsidy=retention price*-notified sale price
Retention price-normative cost of production of
the urea as determined by the Government plus
12 per-cent post tax return on net worth.
Freight subsidy
Farm gate price of urea is amongst the lowest in
the region and is heavily subsidised.
Retention price of controlled fertilizers is fixed in
every 3 years.
1992-govt. decontrolled import of complex
fertilizers (DAP & MOP).
For each decontrolled fertilizer, the Maximum
Retail Price (MRP) is indicated by Central
Government except for Single Super Phosphate,
the MRP of which is indicated by each State/UT
Government.
New fertilizer pricing policy
Started from 1 April 2003
Objective-encouraging efficiency based fertilizer pricing
High Powered Fertilizer Pricing Policy Review
Committee (HPC)
At present, the maximum retail price (MRP) of urea is
Rs. 483 a quintal, while DAP costs Rs. 935 a quintal and
MOP Rs. 445.50 a quintal.
First 2 stages-prices was decided on the basis of energy
consumption
Third stage(2006-10)-conversion of all farms into natural
feed stock.
LIST OF RECENT POLICIES
25
% shares in fertilizer subsidy
20
15 1992-93
1999-00
10 2007-08
0
l r
e sh esh tr a esh jab r at ka ga har ana adu han sa am ala ers mi esh
h a a i s r h
r ad rad ras rad pun guj nat ben b ary iln jast ori ass ke oth as rad
r p rap aha a p kar est h am ra
t u
k lp
t a h m hy m ch a
ut nd w m
a ad ja ima
m h
source-government of India
states
state wise fertilizer use /ha of gross cropped area by size of holding,2001-02
180
160
140
120 marginal
100
small
edarea
ross
80
aofg
semi medium
60
cropp
se/h
40 medium
fertilizeru
20 large
0 all household
punjab madhya maharashtra rajasthan west bengal A.P.
pradesh
major states
concentration of fertilizer subsidy on major crops in
20000
india
total fertilizer
15000
used(000
tonnes)
10000
5000
total fertilizer use
0
major crops
% share in total subsidy
paddy
26% wheat
32% sugarcane
cotton
ground nut
2%
2% jowar
3%
3% bajra
6% maize
6% 20%
others
subsidies in crore rupees subsidies on indegenous and imported fertilizers
10000
9000
8000
7000 Total Subsidy Subsidy on
6000 Indigenous fertilizers
5000
4000 Total Subsidy subsidy on
3000 imported fertilizers
2000
1000
0
ar
19 1
19 3
19 5
19 7
00 9
19 7
19 9
1
8
-8
-9
-9
-9
-9
-9
00
ye
6-
88
90
92
94
96
98
-2
8
19
20
years
Source-department of
fertilizers (government of
India)
Total Subsidy on fertilizers
10000
9000
susidy in crore rupees
8000
7000
6000
5000 Total Subsidy
4000
3000
2000
1000
0
e ar -86 -87 -88 -89 -90 -91 -92 -93 -94 -95 -96 -97 -98 -99 00 01
y 85 86 87 88 89 90 91 92 93 94 95 96 97 98 20 20
- -
19 19 19 19 19 19 19 19 19 19 19 19 19 19 999 000
1 2
years
Fertilizer regulations:
Fertilizer control order
Compulsory registration of fertilizer makers, importers
and sellers.
Specifications for all fertilizers produced, imported or
sold in India.
A set of regulations on the manufacture of fertilizer
mixtures.
Packing and labelling of fertilizer bags.
Appointment of enforcement agencies and creation of
quality control laboratories.
Banning of the manufacture or import and sale of non-
standard, spurious or adulterated fertilizers.
Central fertilizer quality control and
training institute
Undertaking inspection and analysis of imported
and indigenous fertilizers
Standardization and development of method of
analysis
Training of fertilizer enforcement officers and
analysts.
Acting as a referee laboratory
Providing technical guidance to the Central and
State governments on Fertilizer Quality Control
Laboratories.
Fertilizer movement control order(1973)
STRATEGIES FOR INDUSTRY
EXPANSION
Modernization and revamping of existing
fertilizer units.
Reviving some of the closed fertilizer units
Alternative sources for urea production
Establishment of joint ventures where
cheaper raw materials can be procured
Joint ventures for phosphoric acid
procurement
THANK YOU