HEADLINES:  

India is the second biggest consumer of fertilizer in the world next only to China. The Indian Fertilizer companies produced around 37.6 million tonnes of fertilizer in the year 2012-13 with a 9% rise in comparison to 34.6 million tonnes of last year ( 2011-12 ) production.

However, the total availability was short of demand and was met through imports. Of total fertiliser production, urea output increased to 23.3 million tonnes in FY12-13 from 21.8 million tonnes in FY11-12 due to better capacity utilization.

While production of di-ammonium phosphate (DAP) may touch 4.3 million tonne from 3.6 million tones this year, output of NPK (nitrogen, phosphate and potassium) could rise to 10 million tonnes from 9.2 million tonnes in the current period.

The entire requirement of around five million tonnes of potassic fertilisers would be met through imports as India does not have commercially viable sources of potash. With a view to make the nation self-sufficient in urea fertiliser, the Fertiliser Ministry has moved a proposal to boost investment in the sector.


The fertilizer subsidy bill for FY 2012-13 is expected to increase by Rs 10,000 crore in respect of the budgeted estimates. In current financial year FY 2012-13 the subsidy bill would reach to Rs 70,974 crore while it was estimated as Rs 60,974 crore in the budget.

The government planned to contain subsidy within 2% of the GDP in FY 2012-13 but due to international conditions like depreciating Rupee and oil prices subsidies rose to 2.6 % of GDP. The Kelkar Committee has proposed certain initiatives to whittle down subsidies to 2 per cent in FY 2013-14 and 1.8 % in FY 2014-15.

  INDIAN fertilizer INDUSTRY AT A Glance IN 2011 - 2012

  Fertilizers Association of India

  INDIAN FARMERS FERTILIZERS COOPERATIVE LIMITED (IFFCO)

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