The Hindu Business Line : Kribhco plans to sell Omani granulated urea

KRIBHCO is planning to market granulated urea brought in from Oman for the first time in the country, with special focus on the South, according to Mr V.P Singh, Director (Marketing).

Mr Singh said the first shipment from Oman has come in; the vessel with 25,000 tonnes of granulated urea is being unloaded.

The second vessel with 20,500 tonnes would be received in Chennai port and the third with 30,000 tonnes here.

"The Union Government has allotted the two ports for bringing in urea from Oman. We are entitled to unload four lakh tonnes in Visakhapatnam and one lakh tonnes in Chennai," he said.

The granulated urea is manufactured at a plant in Oman set up at a cost of Rs 4,400 crore as a joint venture with three partners - Oman Oil Company with 50 per cent stake and Kribhco and Iffco holding 25 per cent stake apiece.

The plant has production capacity of 16.52 lakh tonnes a year and the entire quantity would be shipped to India as per the buyback clause in the 15-year agreement.

Mr Singh said that granulated urea was superior to ordinary urea as it facilitates slow release of nitrogen and helps increase yields by 20 per cent. It would be evenly distributed and there would be no price variation.

"Our focus is mainly on the southern States, especially Andhra Pradesh, where the estimated annual consumption is 20 lakh tonnes. Paddy is grown extensively in the coastal Andhra districts and we want to market and promote the product here."

Mr Singh also said that Kribhco's main urea plant at Hazira near Surat has annual capacity of 18 lakh tonnes, which would be expanded by 10.54 lakh tonnes at a cost of Rs 1,750 crore.

The expansion proposal is awaiting the clearance of the Union Cabinet.

During 2003-04, Kribhco produced 17.73 lakh tonnes of urea and earned a net profit of Rs 152.70 crore. It paid 18 per cent dividend to the shareholders.

To a question, Mr Singh said that organic farming had many advantages and it was quite desirable, but chemical fertilisers were essential to increase the yields and achieve food security. A certain balance would have to be struck, he added.

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