Urea production falls as naphtha-based units in the South remain shut

The closure of three naphtha-based private urea manufacturing units in southern India has led to a production loss of more than 1 lakh tonnes, according to an office-bearer of a workers’ union at one of the companies.

Mangalore Chemicals and Fertilizers (MCF), SPIC and MFL have stopped producing urea at their naphtha-based plants in Mangalore, Tuticorin and Chennai, respectively, as these are not eligible for subsidies after October 1.

The Union Government had asked naphtha-based units to switch over to natural gas as the feedstock before September 30.

The Government had stated that those who continue with naptha for production of ammonia and urea would not be eligible for subsidy after that.

As a result, MCF had stopped the operations at its urea plant in Mangalore from October 1.

KN Suryanarayana, president of MCF Mangala Workers’ Union, told BusinessLine that the factory suffered a production loss of around 40,000 tonnes in the last 21 days.

Stating that SPIC and MFL have also stopped their operations, he said the total production loss from these three companies is more than 1 lakh tonnes in the last 21 days.

Suryanarayana said farmers in some parts of Tamil Nadu and Andhra Pradesh are now buying urea in the black market by paying extra.

MCF Mangala Workers’ Union had organised protests on October 1 and 7 in Mangalore urging the Government to take steps to operate the plant.

Since there was no response for their demands, the workers’ union organised another protest in Mangalore on Tuesday.

Farmers and representatives from SPIC and MFL workers also participated in the protest, he said.

Stating that the Mangalore plant is capable of producing fertiliser with natural gas as the feedstock, he demanded the Union Government ensure enough supply of natural gas to the plant.

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