The Hindu Business Line : Fertiliser supply gap may hit kharif output in TN

Chennai May 24 Crop output in the coming kharif season in Tamil Nadu is likely to be affected with the shortfall in availability of phosphatic fertilisers.

In Tamil Nadu, the summer season paddy crop is just around the corner, apart from the standing crop of sugarcane. Other major crops including cotton could feel the pinch of di-ammonium phosphate (DAP) short supply.

According to industry estimates, just half the quantity of the estimated requirment of 1.75 lakh tonnes of DAP is available in the market. DAP is a major source of phosphate nutrients for the crop, and is one of the basic nutrients along with nitrogenous and potassic fertilisers.

SPIC shutdown

The reason for the short supply is that Southern Petrochemicals Industries Corporation Ltd (SPIC), which supplies more than 50 per cent of the State's requirement of DAP, is out of production and alternative arrangements have not been finalised.

SPIC, which had shutdown production in March for maintenance activity was expected to restart in April-end. However, the company has informed the stock exchange that two of its working capital lending banks have raised claims in the Debt Recovery Tribunal. So, the opening of letters of credit is delayed and the company is taking steps to restart production.

The significance of phosphatic fertilisers is that it is needed for the crop to take up the other nutrients. If the farmers use less phosphatic fertilisers, the use of other fertilisers also have to be brought down proportionately. So fertiliser use and overall crop output would be affected, say industry sources.

Aggravating the situation further, production constraints are expected to hit the possible substitute for DAP — single super phosphate (SSP). The raw materials, rock phosphate and sulphuric acid need to be imported and their prices in the international markets have increased by about 30 - 35 per cent, according to industry sources.

Urea situation

With SPIC out of the market, urea supplies could also have been affected.

However, IFFCO and KRIBHCO have stepped in to plug the gap with imports from their joint ventures in the Middle East. The monthly requirement is about 65,000-70,000 tonnes, representing a total of about 4,29,000 tonnes, which is likely to be met, sources said.

DAP supplies are a cause of concern to other manufacturers. Tamil Nadu is not a priority market because of the transportation costs. Also, the States in which the production facilities are located would push for their own requirements being met first.

Supply chart

According to the supply plan for the kharif 2007 season, DAP supplies between April and September should have been about 1,75,000 tonnes with a monthly supply ranging around 30,000 tonnes. But between April and June supplies have ranged around 50 per cent or less.

The situation is expected to worsen in the coming months. Of the planned supply, SPIC was expected to supply about 97,000 tonnes of DAP but except for about 1,200 tonnes in April, supplies are down to zero in May. Industry sources say no supplies are expected from the company for the rest of the season.

According to farmers' representatives, the State Government should look at alternative sources of phosphate nutrient. But with SSP also expected to be hit the options are limited.

About 2,27,000 tonnes of Muriate of Potash, the other major input, would be needed and the required quantities have to be entirely imported. The Government needs to finalise the import policies soon, industry sources said.

More Stories on : Cultivation | Fertilisers | Tamil Nadu

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