Scenario of fertilizers industry sectors in india

1. AN OVERVIEW OF FERTILIZERINDUSTRYSTATUS ININDIA
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 Travancoreof India Ltd.
(FACT) in Kerala and the Fertilizers Corporation of India (FCI) in Bihar. This was
during the forties and the fifties.
India witnessed significantgrowth 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
phosphatefertilizers, the Indian fertilizer industry is the 3rd largest producer in
the world. Oneof 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-operativesectors and this
propelled the growth of the Indian fertilizer industry.
SIZEOF THE INDUSTRY: Indian Fertilizer industry today has succeeded in
meeting the demand of all chemical fertilizers over the years. Thefirst
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 gavea positive boostto this
particular sector. The industry of Fertilizer experienced a faster growth rate
and presently India is the third largest fertilizer producer in the world.

2. According to Statistics,
total capacity of the
industry as in .2003 has
reached a level of 121.10
lakh MT of nitrogen
(inclusiveof an installed
capacity of 208.42 lakh
MT of urea after
reassessmentof 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:
• BharatFertilizer Industries Limited, Mumbai
• ChambalFertilizers & Chemicals Limited, New Delhi

3. • CoromandalFertilizers Limited, Secunderabad
• Deepak Fertilizer and Petrochemicals Corporation Limited, Pune
• Fertilizers & Chemicals TravancoreLimited, Kochi
• GodavariFertilizers & Chemical Limited, Secunderabad
• GujaratNarmada Valley Fertilizer Co. Limited, Bharuch
• GujaratState Fertilizers & Chemicals Ltd., Vadodara
• Hindustan Fertilizer Corporation Limited, New Delhi
• Indian Farmers Fertilizer Co-op Ltd., Bangalore
Types of Fertilizers:
STATEWISEPRODUCTIONOF FERTILIZER
 A modestbeginning with respectto 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-Independencephenomena.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:

4.  Gujarat is the largest producerof 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-Sindriand Вaraum, Jharkhand-Jamshedpurand 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

5. Table:Consumption,ProductionandImportsofFertilizersfrom2000-2013(thousandtonsofnutrients)
Year Consumption Production Imports
N P K TOT
AL
N P K TOT
AL
N P K TOT
AL
2000-
01
10
9.
2
42.
2
15.
67
167 109
.6
37.
43
- 147 1.5
4
3.9
6
15.
41
20.91
2001-
02
11
3.
1
43.
8
16.
67
173.6 107
.7
38.
6
- 146.3 2.6
9
4.2
9
17.
01
23.99
2002-
03
10
4.
7
40.
2
16.
01
160.9 105
.6
39.
04
- 144.7 0.6
7
1.7 15.
2
17.57
2003-
04
11
0.
8
41.
2
15.
98
168 106
.3
36.
32
- 142.7 1.3
2
3.3
8
15.
48
20.18
2004-
05
11
7.
1
46.
2
20.
61
184 113
.4
40.
64
- 154 4.1
1
2.9
6
20.
45
27.52
12
7.
2
52 24.
13
203.4 113
.5
42.
21
- 155.8 13.
9
11.
2
27.
47
52.53
2006-
07
13
7.
7
55.
4
23.
35
216.5 115
.8
45.
18
- 161 26.
8
13.
1
20.
69
60.58
2007-
08
14
4.
2
55.
2
26.
36
225.7 109 38.
07
- 147.1 36.
8
13.
9
26.
53
77.21
010
C…

6. 09 0.
9
1 13 .7 64 4 3 8
2009-
10
15
5.
8
72.
7
36.
32
264.9 119 43.
21
- 162.2 34.
5
27.
6
29.
45
91.48
2010-
11
16
5.
6
80.
5
35.
14
281.2 121
.6
42.
23
- 163.8 44.
9
38 40.
69
123.6
2011-
12
17
3
79.
1
26.
76
277.9 122
.6
41.
04
- 163.6 52.
4
44.
3
33.
35
130
2012-
13
16
8.
2
66.
5
20.
62
255.4 121
.9
35.
41
- 157.4 35.
1
26.
3
11.
78
73.08
Source: Departmentof 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