Name of presentation 2004 C o mpany name Fertilizer Demand and Supply - India

Rank of India in World Consumption of Fertilizer Nutrients (N+P+K) 2002-03

Location of Fertilizer Companies in India

Consumption

Consumption

DEMAND FACTORS Price factors Non -price factors Input prices: • Fertiliser • Other inputs Output prices: • Crop prices • Weather • Irrigation • HYV seeds • Availability of Fertilizers • Credit • Promotion & Awarness

SUPPLY CONSTRAINTS Production Imports • Technical / equipment problems • Feedstock / raw material shortage • Power problem • Marketing problem • Labour problem • Govt policies • High international prices • Low exportable surplus

CONSEQUENCE OF UNREALISTIC DEMAND AND PRODUCTIN FORECAST Scarcity Glut High Inventory - Leading to: - High inventory carrying cost - Liquidity crunch - Deterioration in quality of fertilisers due to long period of storage Higher Import - Leading to: -High international price - Addl burden on exchequer Non-availability of Ferts in time – resulting in : - Less farm yield

Forecast of Demand, Supply Balance of Fert nutrients – (‘000 tonnes) 3,238 -2,374 4,795 7,169 -795 15,146 15,941 2011-12 3,075 -2,075 4,795 6,870 -370 15,146 15,516 2010-11 2,917 -1,893 4,693 6,586 -1,666 13,422 15,088 2009-10 2,762 -1,755 4,538 6,293 -1,223 13,403 14,626 2008-09 2,621 -1,616 4,387 6,003 -1,404 12,728 14,132 2007-08 2,482 -1,428 4,253 5,681 -1,049 12,507 13,556 2006-07 Demand Surplus(+)/Deficit(-) Supply Demand Surplus(+)/Deficit(-) Supply Demand Year K2O P2O5 N

Demand - Supply Balance of N ( Nitrogen)

Demand - Supply Balance of P 2 O 5 (Phosphate)

Imports of Fertilizers 194640 Petroleum crude and products 19621.61 Iron and Steel 16693.4 Metalliferrous ores and metal scrap 8157.3 Non-ferrous Metals 1813.79 Crude rubber 1915.35 Newsprint 4347.77 Paper board and mfrs. 2471.43 Pulp and waste paper 651.8 Sugar 8716.32 Edible Oil 9158.94 Fertilisers 154.47 Cereals&preparations 268342.19 A. Bulk Imports 2005-06 Commodities

The value of urea imported in Government account during the last five year is as under:- 2054.94 155.09 13.25 2005-06 (From Oman under long Term Urea Off Take Agreement) 1890.07 258.56 7.31 2005-06 1524.83 237.88 6.41 2004-05 0.00 0.00 0.00 2003-04 0.00 0.00 0.00 2002-03 235.51 107.05 2.20 2001-02 Value in lakh US $ Weighted average price (US $ PMT) Qty. in Lakh MT Year