Imfg Fertilizer - Nutrient Based Subsidy and Generic Overview


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INDIA MANUFACTURING CORPORATION has been established at New Delhi, primarily with the objective of Import, Export, Distribution and Manufacturing of Fertilizers and Steel, to cater to the needs of the expanding Indian market.

The team behind India Manufacturing Corporation (IMFG) has over 2 decades of experience in dealing with various Government agencies in connection with its businesses, and the group is extremely well versed with Government regulatory rules, contracts and tenders.


With extensive experience and knowledge of import and export policy, sales tax and other regulatory rules and laws, IMFG offers an ideal platform for leading international fertilizer manufacturers and traders to get associated with India, and supply at mutually beneficial terms. IMFG has complete information related to Fertilizer Statistics in india, and has access to all the latest trends and policies which shape the Fertilizer industry in India. We are in a strong position to leverage this knowledge to benefit the international fertilizer manufacturers and traders. IMFG assures end-to-end services in the Fertilizer domain, such as:

* Handling shipments, and smooth handling of vessels at ports
* Financial and Legal help to aid in Contracts
* Complete and updated statistics related to Demand and Supply side, including region-wise consumption and future prospects, and the impact of policy changes on fertilizer market in India
* Knowledge of fertilizer plants, in terms of production processes, machinery,. raw material requirements, subsidies and other parameters
* Access to Government agencies dealing with fertilizers in India

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  • Imfg Fertilizer - Nutrient Based Subsidy and Generic Overview

    1. 1. India Manufacturing Corp. Pvt. Ltd. Fertilizers
    2. 2. Nutrient-Based Subsidy <ul><li>Govt. of India has decided to free prices of non-urea fertilisers and fix subsidy on these based on their nutrient content from April 2010. </li></ul><ul><li>Reform would give fertiliser companies the freedom to set farmgate prices of fertilisers other than urea, allow them to offer innovative nutrient combinations, improve the fertiliser balance, soil health and yields. </li></ul><ul><li>Bolder reforms are needed in the domestic fertiliser industry that has seen virtually no investment in the last decade. The final target must be to dismantle price control on urea as well, reimburse the farmer his extra expenditure through better prices, shorten and modernise the supply chain to minimise the impact on retail prices and transfer whatever producer subsidy is deemed fit directly to the farmer and let markets determine all fertiliser prices. </li></ul><ul><li>The fertiliser industry has given an assurance that it will maintain the current price line in decontrolled fertilisers in 2010. </li></ul><ul><li>From April this year, fertiliser subsidy will shift from per tonne of a product to its nutrient content. Eventually, the government should directly pay the subsidy to the farmer. This will be the mother of all reforms in the fertiliser sector. </li></ul>
    3. 3. Nutrient-Based Subsidy <ul><li>Deregulation of fertiliser prices in the new NBS regime would be only to the extent that the cost farmers incur doesn’t rise beyond a band. Government may control prices, in case of steep increases in initial months of the new regime </li></ul><ul><li>Of course, subsidy adjustments will be the first choice of the government to reign in any sharp rise in prices of phosphorous and potash-based fertilisers after their deregulation from April 1. Tweaking of subsidy amounts, along with occasional price adjustments of phosphorous and potash, are expected to reduce any likely pain to the farmer from deregulation, as the wild fluctuations in the global prices of the two fertilisers cannot be ruled out. </li></ul><ul><li>The Fertiliser (Control) Order (FCO) gives the government power to fix retail prices and revoke the licence given to producers and dealers for certain violations such as selling sub-standard or adulterated products, giving false claims about nutrients and selling fertilisers without showing the minimum guaranteed nutrient as a fraction of the total weight. FCO also allows the government to fix different retail prices for selling the same product in different locations or to different classes of buyers. </li></ul><ul><li>After giving producers the freedom to fix retail prices of potash and phosphorous from April, the government’s main concerns are in these areas — non-supply to far flung areas, escalation in international price being passed to the local consumer, sale of products beyond printed price and selling poor quality fertilisers. </li></ul>
    4. 4. Requirement, Production & Import <ul><li> * This is inclusive of quantities imported for industrial purpose for which no subsidy is paid. </li></ul><ul><li>Figures are in Lakh MT </li></ul><ul><li>No new capacity added in last few years. In Urea, availability of gas major constraint and P&K sector depend on imported raw materials </li></ul><ul><li>100% import dependence in Potash & 90% import dependence in Phosphate </li></ul>
    5. 5. Assessed requirement: 2009-10 <ul><li>Figures are in Lakh MT </li></ul><ul><li>No new capacity added in last few years. In Urea, availability of gas major constraint and P&K sector depend on imported raw materials </li></ul><ul><li>As per government’s projections, the urea imports are likely to touch 10 mt by 2011. </li></ul><ul><li>Success of OMIFCO, Oman. The only successful Urea JV. IFFCO and KRIBHCO are each 25% equity partners </li></ul>
    6. 6. Urea Production <ul><li>NFL in collaboration with M/s KRIBHCO & RCF has formed a JV company named as Uravarak Videsh Limited (UVL) to explore investment opportunities abroad and within country in NPK sectors and to render consultancy services for setting up Projects in India & Abroad </li></ul>
    7. 7. Subsidy: Details of expenditure <ul><li>Figures are in Rs. Crores </li></ul><ul><li>Subsidy transferred in the form of subsidized MRP. Subsidy is released to companies on confirmation of receipt of subsidized fertilizers by State Govt. </li></ul><ul><li>Per Hectare consumption of Fertilizers is max. in AP, Punjab & TN, and lowest in NE States, Rajasthan, Orissa, Jharkhand & MP </li></ul>
    8. 8. Top Producers in India (PSUs) Complete List, with contact details, is available Neyveli Lignite Corporation Hindustan Copper Ltd. The Dharamsi Morarji Chemicals Co. Ltd. Indian Farmers Fertilizers Coop Public Sector National Fertilizers Ltd. (NFL) Fertilizer Corp. of India (FCI) Paradeep Phosphates Ltd. (PPL) Fertilizers & Chemicals Travancore (FACT) Hindustan Fertilizer Corp. Ltd. (HFC) FCI Aravali Gypsum & Minerals Ltd. Pyrites, Phosphates & Chemicals (PPCL) RCF Madras Fertilizers Ltd. Indian Potash Ltd. (IPL) Projects & Development India (PDIL) SAIL Cooperatives IFFCO KRIBHCO
    9. 9. Top Producers in India (Private) Maharashtra Agro Industrial Development Corp. Shri Amba Fertilizers Ajay Farm-Chem Bajaj Fertilizers BEC Fertilizers Khaitan Chemical & Fertilizers Rallis India Ltd. Indo-Gulf Fertlizers & Chemicals Corpn. Ltd. Private Sector Gujarat State Fertilizer Company Limited Godavari Fertilisers & Chemical Ltd. Coromandal Fertilisers Ltd. Nagarjuna Fertilizers & Chemicals Limited Shriram Fertilisers & Chemicals Chambal Fertilizers & Chemicals Ltd. Zuari Agro Chemicals Ltd. Tata Chemicals Limited Southern Petrochemical Ind. Corp. Ltd. (SPIC) Oswal Chemicals & Fertilizers Limited Mangalore Chemicals & Fertilizers Limited Basant Agro Tech Ltd. Gujarat Narmada Valley Fertilisers Co. Ltd. Bharat Fertilizer Industries Ltd. Duncans Industries Limited EID Parry (I) Ltd. Deepak Fertilizer and Petrochemicals Corpn. Ltd. Raashi Fertilizers Ltd.
    10. 10. Joint Ventures <ul><li>JORDAN . SPIC, Jordan Phosphates Mines Company Ltd. (JPMC) and Arab Invest. Company (AIC) have setup a JV in Jordan to produce 2.24 L tons of phosphoric acid pa </li></ul><ul><li>MOROCCO . A JV IMACID (Indo Moroc Phosphore SA) between Office Cherifien Des Phosphates (OCP), Morocco and Chambal (CFCL) to produce 3.30 L tons of phosphoric acid pa commissioned in Morocco in October 1999. </li></ul><ul><li>OMAN . OMIFCO. 16.5 LMT of urea & 2.5 LMT of surplus ammonia pa </li></ul><ul><li>UAE . SPIC in process of setting up a gas-based nitro. Fert. plant at Dubai to produce 4 LMT of urea pa at estimated cost of US$ 170 mn </li></ul><ul><li>EGYPT . IFFCO & El Nasr Mining Co. (ENMC) have formed a JV, the Indo Egyptian Fertiliser Company in 2005 for setting up a Phosphoric Acid plant in Edfu, Egypt with installed cap. of 0.5 million tones of P205 pa. </li></ul><ul><li>TUNISIA . GSFC & CFL alongwith Group Chimique Tunisien (GCT) & M/s Compagnie Des Phosphates De Gafsa (CPG) setting up a JV in Tunisia for prodn. of 3.6 LMTs of Phosphoric Acid per annum </li></ul>
    11. 11. Future JVs <ul><li>Import dependence for availability of urea and phosphatic fertilizers & DAP has been increasing over the last few yrs. </li></ul><ul><li>Govt. exploring possibility of setting up JV urea projects in countries abroad having rich gas resources. Specially Middle East like Saudi Arabia, Kuwait & Qatar & in African nations like Nigeria, Egypt and Mozambique. </li></ul><ul><li>Govt. also setting up JV projects for phosphatic rich countries like Tunisia, Algeria, Morocco & Jordan so that supplies of raw material, intermediates and finished fertilizers are ensured in future </li></ul><ul><li>GoI in talks with Qatar for setting up 1.6-mn ton fert plant with a buyback arrangement to import urea at a fixed price to augment its domestic supply, like OMIFCO </li></ul>
    12. 12. Other JVs <ul><li>Israel Chemicals Ltd. has formed a JV with Zuari to produce and distribute water-soluble NPK fert. in India thru a 10000 MT plant. ICL is a leading supplier of fert in Europe and a key player in the specialty fertilizer market </li></ul><ul><li>Yara International ASA & Kribhco to establish a JV for prodn. & mktg. of mineral fertilizer. Indian prodn. base by acquiring existing prodn. facilities & import. Foreign prodn. base in areas with well priced raw materials (2007) </li></ul><ul><li>Deepak Fert to establish JV with Yara for prodn & mkt of ammonium nitrate and specialty fertilizers in India. </li></ul>
    13. 13. SSP Plants Chittorgarh Udaipur Nanded Akola, Wardha, Amravati Raisen / Sagar Thane, Raigad Vizag Khargone, Dewas, Indore, Dhar
    14. 14. SSP Plants
    15. 15. SSP Plants
    16. 16. SSP Plants
    17. 17. SSP Plants
    18. 18. World’s Leading Manufacturers
    19. 19. Thank You Puneet Goyal, Business Head India Mfg. Corp. Pvt. Ltd. ; [email_address] 99905 50666