AN OVERVIEW OF FERTILIZER INDUSTRY STATUS IN INDIA

INTRODUCTION:

The Indian fertilizer industry has come a long way since the setting up of the

manufacturing unit of Single Super phosphate (SSP) near Chennai in 1906 A

new impetus to the growth of Indian Fertilizer industry was provided by the set

up the two fertilizer plants- Fertilizer & Chemicals Travancore of India Ltd.

(FACT) in Kerala and the Fertilizers Corporation of India (FCI) in Bihar. This was

during the forties and the fifties.

India witnessed significant growth of the fertilizer industry during the sixties

and the seventies. By 2003, India had an installed capacity of 12.11 million MT

of nitrogen and 5.36 million MT of phosphate. Today, with 57 large sized

fertilizer plants manufacturing a wide variety of the nitrogenous, complex and

phosphate fertilizers, the Indian fertilizer industry is the 3rd largest producer in

the world. One of the major factors that have led to the rapid increase in the

production capacity of fertilizers in India is the policy environment. With the

formulation and implementation of investor friendly policies, large

investments poured into the private, public and co-operative sectors and this

propelled the growth of the Indian fertilizer industry.

SIZE OF THE INDUSTRY: Indian Fertilizer industry today has succeeded in

meeting the demand of all chemical fertilizers over the years. The first

manufacturing unit was started by the Indian Fertilizer Industry which was of

Single Super Phosphate (SSP) in Ranipet near Chennai with a capacity of 6000

MT a year. India's green revolution in 60's gave a positive boost to this

particular sector. The industry of Fertilizer experienced a faster growth rate

and presently India is the third largest fertilizer producer in the world.

According to Statistics,

total capacity of the

industry as in .2003 has

reached a level of 121.10

lakh MT of nitrogen

(inclusive of an installed

capacity of 208.42 lakh MT

of urea after reassessment

of capacity) and 53.60 lakh MT of phosphatic nutrient

1). Top Players In Indian Fertilizer Industry

Fertilizer industry in India began in 1906 by the establishment of first manufacturing unit of Single Super Phosphate (SSP) with an annual capacity of 6000MT. It was set up in Ranipet near Chennai. However, The Fertilizer & Chemicals Travancore of India Ltd (FACT) was the first large sized fertilizer plant established at Cochin (Kerala) in 1943. FACT started production of Ammonium Sulphate in 1947 with an installed capacity of 50,000 MT per annum. Presently there are approximately 57 large fertilizers plants producing Urea, DAP, Complex fertilizer, Ammonium Sulphate (AS) and Calcium Ammonium Nitrate (CAN). Below is the list of some leading public and private sector companies representing Indian fertilizerindustry:

• Bharat Fertilizer Industries Limited, Mumbai

• Chambal Fertilizers & Chemicals Limited, New Delhi

• Coromandal Fertilizers Limited, Secunderabad

• Deepak Fertilizer and Petrochemicals Corporation Limited, Pune

• Fertilizers & Chemicals Travancore Limited, Kochi

• Godavari Fertilizers & Chemical Limited, Secunderabad

• Gujarat Narmada Valley Fertilizer Co. Limited, Bharuch

• Gujarat State Fertilizers & Chemicals Ltd., Vadodara

• Hindustan Fertilizer Corporation Limited, New Delhi

• Indian Farmers Fertilizer Co-op Ltd., Bangalore

Types of Fertilizers:

STATE WISE PRODUCTION OF FERTILIZER A modest beginning with respect to manufacturing of chemcial fertilizers

was made in 1906 when the first super-phosphate factory was set up at Ranipet in Tamil Nadu. The actual growth of fertilizer indsutry is mainly a post-Independence phenomena. The setting up of the Sindri plant by the Fertilizer Corporation of India Ltd. (FCI) in 1951 was a turning point and this industry did not look back after that. 1. Gujarat:

Gujarat is the largest producer of fertilizers in India and accounts for more than one- fourth of the total production of nitrogenous as well as phosphatic fertilizers of the country. This state has more than 14% of the country’s total installed capacity.

2. Tamil Nadu: This state accounts for about 11 per cent of the country’s installed

capacity. . 3. Uttar Pradesh: accounts for about 9 per cent of the country’s

total installed capacity. 4. Maharashtra: accounts for over 11 per cent of the nitrogenous

and about 7 per cent of the phosphatic fertilizers. 5. Andhra Pradesh:

This state accounts for about 7 per cent of the total installed capacity and produces about 11 per cent of the phosphate and 3.5 per cent of nitrogenous fertilizers of India.

6. Orissa: accounts 6 per cent of the total installed capacity. The industry is located at Rourkela, Talcher, and Paradwip.

7. Kerala: accounts for 6 per cent of the total installed capacity. 8. Rajasthan: 5 per cent of the country’s total installed capacity Bihar-Sindri and Вaraum, Jharkhand-Jamshedpur and Dhanbad,

Punjab-Nangal and Bhatinda, West Bengal-Bumpur, Durgapur, Chhattisgarh-Bhilai, Kumhari and Korba, Assam- Namrup and Chadrapur, Karnataka -Mangalore, Hubli, Mandya, Belagota and Munirchad, Haryana-Panipat, Goa- Sancoale (near Vasco) are other centres. DCM plant at Delhi produces phosphates

Global demand for Indian fertilizer has been on steady rise and so has been its demand for fertilizer imports. India at present holds the fourth position as an exporter of fertilizer in the global

market .But its own demand for fertilizer almost equals its exporting capacity .The

Table: Consumption, Production and Imports of Fertilizers from 2000-2013 (thousand tons of nutrients) Year   Consumption Production Imports

N P K TOTAL

N P K TOTAL

N P K TOTAL

2000-01

109.2

42.2

15.67

167 109.6

37.43

- 147 1.54

3.96

15.41

20.91

2001-02

113.1

43.8

16.67

173.6 107.7

38.6

- 146.3 2.69

4.29

17.01

23.99

2002-03

104.7

40.2

16.01

160.9 105.6

39.04

- 144.7 0.67

1.7 15.2

17.57

2003-04

110.8

41.2

15.98

168 106.3

36.32

- 142.7 1.32

3.38

15.48

20.18

2004-05

117.1

46.2

20.61

184 113.4

40.64

- 154 4.11

2.96

20.45

27.52

0Series 1

Series 2

Series 3 12

7.2

52 24.13

203.4 113.5

42.21

- 155.8 13.9

11.2

27.47

52.53

2006- 13 55. 23. 216.5 115 45. - 161 26. 13. 20. 60.58

07 7.7

4 35 .8 18 8 1 69

2007-08

144.2

55.2

26.36

225.7 109 38.07

- 147.1 36.8

13.9

26.53

77.21

2008-09

150.9

65.1

33.13

249.1 108.7

34.64

- 143.3 38.4

29.3

33.8

101.5

2009-10

155.8

72.7

36.32

264.9 119 43.21

- 162.2 34.5

27.6

29.45

91.48

2010-11

165.6

80.5

35.14

281.2 121.6

42.23

- 163.8 44.9

38 40.69

123.6

2011-12

173

79.1

26.76

277.9 122.6

41.04

- 163.6 52.4

44.3

33.35

130  

2012-13

168.2

66.5

20.62

255.4 121.9

35.41

- 157.4 35.1

26.3

11.78

73.08

Source: Department of Fertilizers

With limited land availability, productivity growth has remained an important driver for India in achieving growth in the foodgrain production. Although India ranks first in productivity of grapes, banana, cassava, peas, and papaya, the productivity levels of Indian agriculture particularly in key food grains is way below global standards. Constraints on procuring additional farmland make it critical for the farmers to use high-quality inputs, fertilisers and agrochemicals to improve productivity and yield, which would be the major focus area going forward. Further, demand for agro commodities are increasing due to

increasing population, improved prosperity and increasing MSPs to make farming more lucrative opens up opportunities for Indian agri-input manufacturers. Hence, the demand outlook for agri-input producers remains favourable over the medium term to long term