India heads for self-sufficiency in urea, next target may be export

With the government set to commission three near-revived urea production units, the apparent target is a graduation from reduction in import dependency by 80 per cent towards exporting the surplus as experts see a reduction in consumption following introduction of nano urea and promotion of natural farming.

The Gorakhpur plant (Uttar Pradesh), which was commissioned in December last year by Prime Minister Narendra Modi, is likely to start producing full capacity of 1.27 million tonnes (mt) per annum in next couple of months while the Ramagundam plant (Telangana) may be operational to its full capacity (1.27 mt) around June, depending on gas supply.

Two other plants – one at Sindri (Jharkhand) and another at Barauni (Bihar) – each having 1.27 mt capacity – may also be commissioned by June as 94 per cent of the projects have been completed until January.

There are two other plants in the private sector already commissioned – one at Kota (Rajasthan) by Chambal Fertilisers and Chemicals and another at Panagarh (West Bengal) – adding 2.6 mt to the country’s urea capacity.

“By June-end, we are expecting the production to increase to 31.8 mt as against 24 mt in 2018-19 whereas the demand is around 33 mt. So, when two other units will be commissioned, one at Talcher (Odisha) and another at Namrup (Assam), the country will achieve self-sufficiency as production will exceed 34 mt,” said an official.

Nano-urea adoption

However, some experts have said the country should be prepared to export in future as with 100 per cent capacity utilisation, there could be surplus once nano-urea’s adoption increases and campaign on natural farming gains momentum.

“Nano urea will substantially bring down current usage of urea in bags. The government has also talked about green ammonia which is the next thing to help reduce urea. As dosage will be very low leading to surplus and also helping balanced use of fertiliser, the government should simultaneously prepare to capture the market vacated by China,” said Vijay Sardana, an agriculture and food policy expert.

China last year banned export of urea to meet domestic demand, as a result global prices flared up to record high. Recently Russia also restricted outbound shipments amid the war in Ukraine and subsequent sanctions by US and European Union,

Bharat Urea

Meanwhile, the government has been toying with the idea to roll out one brand of urea – Bharat Urea – at least for the imported fertiliser if not possible for domestically produced crop nutrient. Last week, it discussed with industry representatives the pros and cons of such an initiative under a proposed scheme Pradhan Mantri Bhartiya Jan-Urea Pariyojana, sources said.

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