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1. INDUSTRY PROFILE
Fertilizer refers to any material switch supplies nutrients to plants in fields, which can be readily absorbed by them. Since the essential physiological attribute of seeds in their ability to convert a great deal of nutrients into again. The spread of this variety lead for greater consumption fertilizers simultaneously with increasing demographic pressure on the agricultural productivity has assumed more importance. This also contributed to the rising demand for fertilizers. The fertilizers are most widely used. They are classified as under basing the nutrients available. The most widely nutrients are nitrogen, phosphorus and potash.
Straight nitrogenous fertilizers (UREA,A.S.CAN)
Straight phosphoric fertilizers (SSP,ROCK,PHO)
NP fertilizers (dap,20:20:0,28:28:0)
Straight potash fertilizers (MOP,SOP)
NPK fertilizers (NPK,7:17:17 etc )
Other fertilizers (ZS etc).
Consequently fertilizers have become a key agricultural input so that the existence domestic fertilizer industry is crucial to ensure the regular supply of fertilizer and attain goals self –food security accordingly government policy has also encouraged the industry by giving several benefits. India has made great studies in the development of fertilizers industry and rank as the fourth largest producer in the world during 1991-92
Conception of fertilizers has gone up marginally to 12 million tones in1991-1992 on the recommendations of joint parliamentary committee on fertilizers pricing and in order to encourage indigenous manufactures of die- ammonium phosphate to complete with the imported D.A.P. The customs duty on import of phosphoric acid and ammonia was abolished.
PRODUCTION
Prior to 1960/61, India produced only straight nitrogenous fertilizers [ammonium sulphate (AS), urea, calcium ammonium nitrate (CAN), ammonium chloride and single superphosphate (SSP)]. The production of NP complex fertilizers commenced in 1960/61. Currently, India produces a large number of grades of NP / NPK complex fertilizer. These include 16–20–20, 20–20–0, 28– 28–0, 15–15–15, 17–17–17, 19–19–19, 10–26–26, 12–32–16, 14–28–14, 14–35–14 and 19–19– 19. In addition, India produces various grades of simple and granulated mixtures.
The domestic production of N and P2O5 was 29 000 and 10 000 tonnes, respectively, in 1951/52. By 1973/74, this had increased to 1.05 million tonnes N and 0.325 million tones P2O5. As a result of the oil crisis in the mid-1970s and the consequent sharp increase in the international prices of fertilizers, the Government of India encouraged investment in domestic fertilizer production plants in order to reduce dependence on imports. It introduced a “retention price” subsidy in 1975/76. The scheme led to a sharp increase in domestic capacity and production between the mid-1970s and the early 1990s. The total production of N and P2O5 rose from 1.51 million and 0.32 million tonnes respectively in 1975/76 to 7.30 million and 2.56 million tonnes in 1991/92. In 1992/93, phosphatic and potassic fertilizers were decontrolled. As a consequence, the rate of growth in the demand for these products slowed. The total production of N reached 10.6 million tones and that of P2O5 reached 3.6 million tonnes in 2003/04.
There has been a shift in the product pattern over the years. SSP and AS dominated fertilizer production before the 1960s whereas urea and DAP dominate production at present. In 2003/04, urea accounted for 84.6 percent of total N production and di-ammonium phosphate (DAP) accounted for 59.9 percent of total P2O5 production (Table 7).
IMPORTS
India imports mainly urea, DAP and potassium chloride (MOP). The country has almost reached self-sufficiency in urea production. As regards DAP, the level of imports was between 1.5 and 2 million tonnes in the 1980s and 1990s. A great deal of DAP capacity came on stream in the early 2000s. Consequently, the importation of DAP fell to less than 1 million tonnes after 2000/01. In 2003/04, DAP imports were 0.73 million tonnes. Imports meet the entire MOP requirement as there are no known natural potash deposits in the country. In 2003/04, MOP imports were 2.58 million tonnes In addition, India also imports a small quantity of mono-ammonium phosphate (MAP) and potassium sulphate (SOP) (65 000 and 10 500 tonnes, respectively, in 2003/04).
CONSUMPTION
Fertilizer consumption was less than 1 million tonnes before the mid-1960s. With the introduction of high-yielding variety (HYV) seeds, there was acceleration in the growth of fertilizer consumption. It reached 12.73 million tonnes in 1991/92 as against 0.78 million tonnes in 1965/66. After the decontrol of P and K fertilizers the growth in consumption slowed. The highest consumption was recorded in 1999/2000 (18.07 million tonnes of nutrients). Since then, the growth in consumption has been erratic. In 2003/04, total nutrient consumption was 16.8 million tonnes. The consumption of N, P2O5 and K2O was 11.08, 4.12 and 1.60 million tones, respectively. Table 8 shows the production, importation and consumption of N, P2O5 and K2O from 1999/2000 to 2003/04.
CONSUMPTION AT STATE LEVEL
The consumption of fertilizers varies significantly from state to state. The all-India per-hectare consumption of total nutrients was 89.8 kg in 2003/04. While the North and South zones have a consumption of more than 100 kg/ha, in the East and West zones the consumption is lower than 80 kg/ha. Among the major states, the per-hectare consumption is more than 100 kg in West Bengal (122 kg), Haryana (167 kg), Punjab (184 kg), Uttar Pradesh and Uttaranchal (127 kg), Andhra Pradesh (138 kg) and Tamil Nadu (112 kg). In the remaining states, the consumption per hectare is lower than the all-India average. Table 9 shows fertilizer consumption per hectare of the gross cropped area in the major states.