India’s fertiliser requirement may go up this year with an anticipated 5-6 per cent growth in the applied fertiliser consumption, thanks to the good monsoon forecast.

However, the emerging situation warrants more fertiliser imports given the full capacity utilisation in the existing plants even after retrofits and revamp to realise its maximum output.

As the setting up of new plants is time consuming, the current situation favour imports in the near term. Hence, import of fertiliser raw materials, intermediates and finished products would expect to increase, a paper presented at the just concluded Asian Fertiliser Conference held in Beijing said.

Presenting the paper, MP Sukumaran Nair, fertiliser industry expert and former Special Secretary to Kerala Chief Minister, pointed out that the adoption of nutrient-based pricing strategy in the phosphate and potash fertilisers has led to large-scale increase in product price in the domestic markets. Over the years, import of raw materials such as rock phosphate and sulphur has gone up considerably and consequently, the operating margins started declining. The situation is no different in the case of potash where the whole requirement is met by imports.

Given such scenario, Nair suggested Indian manufacturers to enter into long-term contracts with overseas suppliers, operate joint venture facilities in countries, where raw material is available, or acquire fertiliser assets abroad to ensure a steady availability of plant nutrients to farmers.

In his paper – Outlook for Fertiliser Consumption in India: Future Demand and Import dependency – he blamed the meddled fertiliser policy in the last one and a half decade for fading away investors’ confidence in setting up fertiliser manufacturing plants. However, he was of the view, that a speedy decision making process vis-à-vis policy and projects together with mandatory guidelines for diligent use and a balanced import strategy will revitalise the domestic fertiliser production in a big way.

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