1.
FERTILISER INDUSTRY OF
INDIA

2.
 Fertilizers(American English) or fertilisers (British
English) are compounds given to plants with the
intention of promoting growth.
 Applied either via the soil, for uptake by plant roots, or
by foliar feeding, for uptake through leaves.
 Organic (composed of organic matter, i.e. carbon
based), or inorganic (containing simple, inorganic
chemicals).
 Naturally-occurring compds such as peat, or made
through natural processes (such as composting) or
chemical processes (such as the Haber process).

3.
 Fertilizers typically provide, the three major
plant nutrients (nitrogen, phosphorus, and
potassium).
 Secondary plant nutrients (calcium, sulfur,
magnesium).
 Trace elements (or micronutrients) with a role in
plant nutrition: boron, chlorine, manganese, iron,
zinc, copper and molybdenum.

4.
Presentation outline
 Introduction
 Global production and consumption of fertilizers
 Indian fertilizer industry
 Indian production ,consumption & import trend.
 Major companies
 Policies (subsidies & regulations)
 Strategies for industry expansion

5.
INTRODUCTION
 India is the third largest producer and consumer of
fertilizer in the world.
 Indian fertilizer industry started in 1906 with SSP
production facility at Ranipet near Chennai
 Started operating in a big scale since 1940s, when the
Fertilizer & Chemicals Travancore of India Ltd. and the
Fertilizers Corporation of India were set up in Kerala and
Bihar
 The private sector produced 44.73 % of nitrogenous
fertilizers and 62.08 % of phosphatic fertilizers in 2006-
07.
 Total production of fertilizers in india-206.5mt .

6.
Contd….
 The production of urea in India has reached
near self-sufficiency. The requirement of the
nitrogenous fertilizers is met through the
indigenous industry
 In the case of phosphatic fertilizers, the raw
materials and intermediates are imported in
large scale.
 . The requirement of potash (K) is met entirely
through imports. No fertilizer unit of India has
any reserve of potash.

7.
Global production &
consumption of fertilizers

8.
Indian fertilizer industry
 65 large-sized fertilizer plants in India .
 32 units-urea
 20 units-DAP & complex fertilizers
 13 units-ammonium phosphate & CAN
 Nitrogenous fertilizers-88% urea ,10%
DAP & 2% ammonium fertilizers.

9.
co2 emmission from fertilizers
0.7, 42%
0.95, 58%
india
global average

10.
Indian production,
consumption & import
trend

11.
Fertilizer use and crop production
in India
24%
8%
3%
9%
5%
3%
4%
2.00%
5%
Rice 37%
Wheat 24%
Food Grains 8%
Pulses 3%
Oil Seeds 9%
Sugarcane 5%
Cotton 3%
Vegetables 4%
Figure 2: Crops wise consumption of Fertilizer in India
Rice
37%
Wheat
24%
Food Grains
8%
Pulses
3%
Oil Seeds
9%
Sugarcane
5%
Cotton
3%
Vegetables
4%
Fruits
2%
Others
5%
Rice
Wheat
Food Grains
Pulses
Oil Seeds
Sugarcane
Cotton
Vegetables
Fruits
Others

12.
PRODUCTION AND IMPORT OF FERTILISERS(IN '000'T)
0
2000
4000
6000
8000
10000
12000
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
YEARS
PRODUCTIONANDIMPORT(IN
'000TONNES)
N Production
N Imports
P2O2 Production
P2O2 Import
K2O Production
K2O Import

13.
CONSUMPTION OF CHEMICAL FERTILISER( LAKH TON)
0
20
40
60
80
100
120
140
160
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
YEAR
CONSUMPTIONINLAKH
TON
Nitrogenous(N)
Phosphatic(P)
Potassic(K)

14.
"N" consumption
0
500
1000
1500
2000
2500
3000
states
andhra
pradesh
punjabtam
ilnadu
haryana
uttarpradesh
biharkarnataka
m
aharashtra
gujrat
m
adhyapradeshrajasthan
w
estbengal
states
"000"tonnes
2006-07
2007-08

15.
p consumption
0
100
200
300
400
500
600
700
800
900
andhrapradesh
punjabtam
ilnadu
haryana
uttarpradesh
biharkarnataka
maharashtra
gujrat
madhyapradeshrajasthanwestbengal
assam
states
pconsumption(000tonnes)
p2o5(2006-07)
P2O5(2007-08)

16.
"k" fertilizer consumption
0
100
200
300
400
500
600
700
800
900
andhra
pradeshpunjabtam
ilnaduharyana
uttarpradesh
bihar
karnataka
m
aharashtra
gujrat
m
adhyapradeshrajasthan
westbengalassam
states
"000"tonnes
2006-07
2007-08

17.
consumption of N,P,K(kg/ha)
0
20
40
60
80
100
120
140
1951-52
1957-58
1961-62
1965-66
1969-70
1973-74
1977-78
1981-82
1985-86
1989-90
1993-94
1997-98
2001-02
2005-06(P)
years
consumptionof
N,P,K(kg/ha)
consumption of N,P,K(kg/ha)

18.
% shares of consumption of fertilizers in 2006-07
12%
8%
6%
6%
19%
5%
7%
11%
7%
6%
5%
7%
1%
andhra pradesh
punjab
tamilnadu
haryana
uttar pradesh
bihar
karnataka
maharashtra
gujrat
madhyapradesh
rajasthan
west bengal
assam
% shares of states in fertilizer consumption in 2007-08
13%
8%
5%
6%
17%
6%
7%
11%
8%
6%
5%
7% 1%
andhra pradesh 2667.58
punjab 1697.76
tamilnadu 1075.65
haryana 1230.36
uttar pradesh 3755.92
bihar 1205.64
karnataka 1507.38
maharashtra 2325.85
gujrat 1623.26
madhyapradesh 1301.7
rajasthan 986.7
west bengal 1374.74
assam 213.94

19.
MAJOR PLAYERS:
 The public sector companies in Indian fertilizer market are
listed below:
 · Fertilizer Corporation of India Limited (FCIL)
 · Hindustan Fertilizer Corporation Limited (HFC)
 · Pyrites, Phosphates & Chemicals Limited
 · Rashtriya Chemicals and Fertilizers Limited (RCF)
 · National Fertilizers Limited (NFL)
 · Projects &Development India Limited (PDIL)
 · The Fertilizers and Chemicals Travancore Limited (FACT)
 · Madras Fertilizers Limited (MFL)
 · FCI Aravali Gypsum & Minerals India Limited, Jodhpur

20.
Some Private fertilizer Companies
 The Scientific Fertilizer Co Pvt Ltd
 Coromandel Fertilizers
 Deepak Fertilizers and Petrochemicals Corporation Limited
 Apratim International
 Aries AgroVet
 Devidayal Agro Chemicals
 DSCL
 Gujarat State Fertilizers &Chemicals Limited
 Tata Chemicals Limited
 Chambal Fertilizers
 Nagarjuna Fertilizers and chemicals limited
 Godavari Fertilizers and Chemicals limited
 Zuari Industries limited

21.
CHALLENGES IN FERTILISER
INDUSTRY
 Gap between demand and supply
 Greater dependency of country on imports( also
feedstock)
 Unable reduce burden of government in
subsidiary rates
 Infrastructural bottlenecks
 Uncertainties in government policies
 Small size of older plants

22.
CURRENT SCENERIO
 Most companies are expecting approval for their
huge capital expenditure plans from department
of fertilizer and industry
 Indian fertilizer companies joined hands with
Jordan, Senegal, Oman, Morocco, Egypt etc
 The demand for fertilizer has increased by 5%
(21 June 2010, Rashtriya Chemicals and
fertilizer)
 10% increase in Urea price in April 2010
 Fertilizer subsidy has taken largest share for
58.7% of total subsidies in 2008-09

23.
projected production of urea
0
10
20
30
40
2008-092010-112012-132014-152016-172018-192020-212022-232024-252026-272028-29
years
productionMT/annum
production million MT/annum

24.
Fertilizer subsidy
 In both developed and developing countries.
 Objectives-
 Self sufficiency
 making available fertilizers to farmers at
affordable prices and to promote balanced
application of three main fertilizer nutrients viz.
nitrogen, phosphorus and potash.
 To encourage domestic production by allowing
fertilizer producer a reasonable returns.

25.
Trends in fertilizer subsidies
 Retention price cum subsidy scheme
 Fertilizer control order,1985
 Nov 1977-nitrogenous fertilizers
 Feb 1979-complex fertilizers
 To encourage green revolution
 Subsidy=retention price*-notified sale price
 Retention price-normative cost of production of
the urea as determined by the Government plus
12 per-cent post tax return on net worth.
 Freight subsidy

26.
 Farm gate price of urea is amongst the lowest in
the region and is heavily subsidised.
 Retention price of controlled fertilizers is fixed in
every 3 years.
 1992-govt. decontrolled import of complex
fertilizers (DAP & MOP).
 For each decontrolled fertilizer, the Maximum
Retail Price (MRP) is indicated by Central
Government except for Single Super Phosphate,
the MRP of which is indicated by each State/UT
Government.

27.
New fertilizer pricing policy
 Started from 1 April 2003
 Objective-encouraging efficiency based fertilizer pricing
 High Powered Fertilizer Pricing Policy Review
Committee (HPC)
 At present, the maximum retail price (MRP) of urea is
Rs. 483 a quintal, while DAP costs Rs. 935 a quintal and
MOP Rs. 445.50 a quintal.
 First 2 stages-prices was decided on the basis of energy
consumption
 Third stage(2006-10)-conversion of all farms into natural
feed stock.

28.
LIST OF RECENT POLICIES
1. concession scheme for SSP,DAP,MOP,SSP,TSP &
indigenous Ammonium Sulphate.
2. Policy for encouraging production and availability of
fortified and coated fertilizers.
3. Nutrient based pricing of subsidized fertilizers
4. Policy on P & K fertilizers
5. Policy for uniform freight subsidy on all fertilizers
6. Policy for new investments in urea sector and long term
off take of urea from joint ventures abroad

29.
NUTRIENT BASED SUBSIDY
 NBS policy on decontrolled Phosphoric and Potassic
fertilizer w.e.f 1st April ,2010.
 Fix subsidy on N,P,K,S for 2010-11
 Additional per ton subsidy for subsidized fertilizer
carrying other secondary nutrients and micronutrients.eg
in Zn,Boron.
 Constitute an Inter Ministerial Committee under
chairmanship of Secretary of fertilizer.
 Retail prices fixed by companies at farm gate level
 10% increase in price of urea (Rs 4830 to Rs 5310)

30.
 source-government of India
% shares of major states in total fertilizer subsidy in
india
0
5
10
15
20
25
uttarpradesh
andhrapradesh
m
aharashtra
m
adhya
pradeshpunjabgujarat
karnataka
w
estbengalbiharharyana
tam
ilnadurajasthanorissaassam
keralaothers
jam
m
u
kashm
ir
him
achalpradesh
states
%sharesinfertilizersubsidy
1992-93
1999-00
2007-08

31.
state wise fertilizer use /ha ofgrosscropped area by size ofholding,2001-02
0
20
40
60
80
100
120
140
160
180
punjab madhya
pradesh
maharashtra rajasthan westbengal A.P.
major states
fertilizeruse/haofgross
croppedarea
marginal
small
semimedium
medium
large
allhousehold

32.
concentration of fertilizer subsidy on major crops in
india
0
5000
10000
15000
20000
paddywheat
sugarcane
cotton
ground
nut
jowar
bajra
m
aizeothersallcrops
major crops
totalfertilizer
used(000
tonnes)
total fertilizer use

33.
% share in total subsidy
32%
20%6%
6%
3%
3%
2%
2%
26%
paddy
wheat
sugarcane
cotton
ground nut
jowar
bajra
maize
others

34.
 Source-department of
fertilizers (government of
India)
subsidies on indegenous and imported fertilizers
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000year1986-871988-891990-911992-931994-951996-971998-992000-2001
years
subsidiesincrorerupees
Total Subsidy Subsidy on
Indigenous fertilizers
Total Subsidy subsidy on
imported fertilizers

35.
Total Subsidy on fertilizers
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
year1985-861986-871987-881988-891989-901990-911991-921992-931993-941994-951995-961996-971997-981998-99
1999-2000
2000-2001
years
susidyincrorerupees
Total Subsidy

36.
Fertilizer regulations:

37.
Fertilizer control order
 Compulsory registration of fertilizer makers, importers
and sellers.
 Specifications for all fertilizers produced, imported or
sold in India.
 A set of regulations on the manufacture of fertilizer
mixtures.
 Packing and labelling of fertilizer bags.
 Appointment of enforcement agencies and creation of
quality control laboratories.
 Banning of the manufacture or import and sale of non-
standard, spurious or adulterated fertilizers.

38.
Central fertilizer quality control and
training institute
 Undertaking inspection and analysis of imported
and indigenous fertilizers
 Standardization and development of method of
analysis
 Training of fertilizer enforcement officers and
analysts.
 Acting as a referee laboratory
 Providing technical guidance to the Central and
State governments on Fertilizer Quality Control
Laboratories.
 Fertilizer movement control order(1973)

39.
STRATEGIES FOR INDUSTRY
EXPANSION
 Modernization and revamping of existing
fertilizer units.
 Reviving some of the closed fertilizer units
 Alternative sources for urea production
 Establishment of joint ventures where
cheaper raw materials can be procured
 Joint ventures for phosphoric acid
procurement