Fertiliser demand likely to rise by over 4%: Govt

The demand for fertilisers is on the rise and is expected to be 61.27 million tonne in 2012—13, up 4 per cent over last year, Parliament was informed on Friday.

Retail prices of fertilisers, which have stabilised since third quarter of 2011—12 fiscal, are expected to remain stable in 2012—13, Minister of State for Chemicals and Fertilisers, Mr Srikant Jena, said in a written reply to the Rajya Sabha.

The minister said, “The demand of fertilisers in the country is on the rise” and the total requirement is expected to touch 61.27 million tonne in 2012—13, as against 58.69 million tonne last year.

This year, urea demand is expected to be 32 million tonne, di—ammonium phosphate (DAP) — 13.24 million tonne, potash — 4.69 million tonne and complex nutrients — 11.25 million tonne, he said.

Last year, urea demand stood at 30.51 million tonne, DAP — 12.61 million tonne, potash — 4.82 million tonne and complexes — 10.73 million tonne, he added.

Replying to a separate query, Mr Jena said, the country is fully dependent on imports to meet the requirements of phosphatic (P) and potassic (K) fertilisers.

India’s domestic fertilisers production stood at 37.12 million tonnes in 2011—12 fiscal and the country imported 22.29 million tonne of nutrients, he said.

The indigenous fertiliser production from 2009—10 to 2011—12 is almost at the same level. However, there is continuous increase of imports of fertilisers because of higher demand projected by the states, he explained.

Replying to another query, Mr Jena said that the rate of increase in consumption of urea is slightly more than that of P&K fertiliser after the implementation of Nutrient Based Subsidy policy in April 2010.

Retail prices of DAP and complexes rose substantially during 2011—12. In spite of price increase, the consumption of DAP remained at the 2010—11 level but consumption of complexes increased, he said.

However, prices have stabilised since third quarter of 2011—12 fiscal and “are expected to remain stable during 2012—13,” he said replying to another question.

Nevertheless, the government has taken steps to encourage indigenous production of P&K fertilisers by allowing import parity price to the domestic makers. The government has also reduced custom duty on phosphoric acid from 5 per cent to 2 per cent, he said.

He further said the government is encouraging private and public sector companies to explore the possibilities for joint ventures abroad to ensure uninterrupted supply of fertilisers P and K inputs.

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