Contact Your Financial Adviser Money Making MC
 |
FERTILIZER(The Total Investment & Insurance Solutions)
India’s
dependency on fertiliser imports will continue in the medium-term, though urea
imports are likely to decline as a new manufacturing capacity comes on-stream
under the New Investment Policy 2012, according to a report.
Returns from the new urea manufacturing
capacity coming on-stream are likely to be strong, subject to the timely
receipt of subsidy and offtake above 85 per cent, India Ratings and Research
(Ind-Ra) said in a report. Ind-Ra estimates urea imports to decline to nil by
FY21. The Total Investment &
Insurance Solutions
“We do not have domestic reserves of MOP and
hence will continue to import 100 per cent of potash. Globally, the potash
market is controlled by five companies, given their proximity to the raw
material. The usage of muriate of potash (MOP) in India largely depends on the
price payable by the end-user,” the report added.
Meanwhile, di-ammonium phosphate (DAP) is
produced either from rock phosphate (RP) or phosphoric acid (PA) domestically
or is imported directly. Given that India has limited resources of RP, with RP
mines in Rajasthan being owned by Rajasthan State Mines and Minerals, most of
the RP/PA is imported in the country. The
Total Investment & Insurance Solutions
Ind-Ra expects lower direct imports of DAP in
the country, but higher imports of RP/PA as more conversion facilities are set
up in the country, it added.
Apart from urea, DAP and MOP, fertiliser
companies are increasingly focusing on customised NPK fertilisers
(nitrogen-phosphorus-potassium), to address the specific agro-climatic needs of
farmers. This benefits not only the farmers but also the manufacturers, as they
earn better realisations and profitability on these customised products, it
said. The Total Investment &
Insurance Solutions
The country consumes 55 million tonne of
fertilisers annually, of which 72 per cent is domestically produced while the
rest is imported, India Ratings and Research (Ind-Ra) said in a report. Of the
15.5 million tonne of fertilisers imported, urea, DAP and MOP constituted 6
million tonne (39 per cent), 4.3 million tonne (28 per cent) and 4.7 million
tonne (31 per cent), respectively, during FY18.The Total Investment & Insurance Solutions
No comments:
Post a Comment