Business Daily from THE HINDU group of publications Saturday, Dec 15, 2007 ePaper | Mobile/PDA Version |
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Industry & Economy
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Fertilisers States - Kerala ‘Ensure sulphur supply for fertiliser factories’ G.K. Nair Kochi, Dec. 14 Given the continuous rise in the prices of imported sulphur and the consequent crisis in the fertiliser industry, the Centre’s intervention has been sought to ensure availability of this raw material to enable fertiliser plants to sustain their operations. Speaking to Business Line, Mr K. Chandran Pillai, a senior CITU leader and Member of Rajya Sabha, said “aggressive mobilisation is required for the survival of a number of fertiliser units in the country and that is possible only by a direct intervention of the government through MMTC, STC and IPL which could import sulphur and make it available to the plants”. At this juncture there are two options before the government. The Union Fertiliser Ministry could either come out with an administrative price mechanism for sulphur or provide price compensation by providing subsidy, said Mr Pillai, who was part of a delegation of MPs from Kerala which apprised the Prime Minister of the issue recently. ‘Bad economics’Resorting to import substitution in the case of fertiliser is “bad economics,” Mr Pillai pointed out, adding it would result in idling of a number of plants and consequently losing employment. Besides, non-utilisation of our resources would lead to heavy losses and it would result in huge forex outflow, he said. According to Mr Pillai, recent studies have shown that the soil in south India is heavily depleted of sulphur and hence application of sulphur containing fertiliser is on the rise. Therefore, the main product of the Fertilisers and Chemicals Travancore Ltd (FACT) is factamphos, he said.FACT’s annual requirement of this raw material is 22 lakh tonne. It now imports 15,000 tonne from West Asia at $389.01 a tonne and that might go for only 22 days. “What would happen thereafter is uncertain.” . Considering that sulphur containing fertiliser is vital for agriculture in the entire south India, where its depletion is caused mainly by intensive farming of oil bearing crops, intervention of the Government is necessary , he said. More Stories on : Fertilisers | Metals | Kerala
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