![]() Financial Daily from THE HINDU group of publications Wednesday, Aug 07, 2002 |
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Industry & Economy
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Fertilisers Drought to hit fertiliser sector Our Bureau
BANGALORE, Aug. 6 KARNATAKA, which is one of the major States affected by drought due to truant monsoon in most parts of State, is likely to see a scaled down consumption of fertiliser. Though the State administration is still grappling with the situation, having already declared that 143 taluks out of 172 were affected by drought, a concrete step to tackle the situation has yet to be taken in terms of alternative strategy to avert any major setback. No estimate has been made so far about the likely reduction in the offtake of fertilisers in the coming two months, which is the usual peak period when farmers use nutrients to nurse crops after sowing. However, with sparse rains in most parts, sowing had been affected, even while the standing crops in some parts were starving for the crucial rains fro moisture before harvest. A quick approximation of the fall out of the drought-like situation on the fertilisers consumption has indicated that about 30 to 50 per cent of allocation of controlled fertilizers such as urea for the State for kharif season could remain unutilised. The estimated allocation for urea alone for the kharif season is about 72,000 tonnes. The State, which has lately picked up in its consumption of fertilisers had recorded a sales of more than 78,000 tonnes. But this acceleration in sales is expected to face a setback, says an industry source. Karnataka had registered a cumulative sale of 1.2 lakh tonnes of urea between April to June 2002. The State holds a stock of over 1.6 lakh tonnes as on July 1, which had been allocated to over half a dozen fertilisers companies such as MCF, FACT, IFFCO, NFCL. Besides, the State had also been showing an upward trend in the consumption of decontrolled fertilisers such as ammonia sulphate, rock phosphates, DAP and rock phosphate. It was only recently that even the IFFCO, the largest fertiliser co-operative company has been able to increase its sales volume to 1.09 lakh tonnes of NPK/DAP and urea. But the spectre of drought appears to have come as a disappointment. The fertilisers PSU is likely to face a scaled down distribution of its fertilisers during the kharif season for which it had been allocated about 56,000 tonnes. "We have yet to assess the situation," said a senior official IFFCO adding that the next two months are crucial for farmers to decide on the alternative cropping plans to stem the sever impact of agricultural produce. Even while the fertiliser companies are watching the situation to plan their next step, farming labourers have started migrating to towns and cities in search of gainful employment, according to officials.
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