Indian Fertilizer consumption (1975 2012))
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Indian Fertilizer consumption (1975 2012))

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  • 1. Major Advisor Seminar TeacherDr. P.K. Dr. B.M.Mandanna Shashidhara Prasoon Mishra1 MBAL 1020 2/26/2013
  • 2. Scientist view  The role of chemical fertilisers for increased agricultural production, in particular in developing countries, is well established. Some Scientist argue that-  Acc. to Tomich et. al. (1995), fertiliser was as important as seed in the Green Revolution.  Acc. FAO (1998) and Hopper (1993), Fertilizer is contributing as much as 50 percent of the yield growth in Asia.  Acc. Bumb (1995), one-third of the cereal production world-wide is due to the use of fertiliser and related factors of production2 2/26/2013
  • 3. Introduction  India is the third largest producer and second largest consumer of Chemical fertilizer in the world.  Indian Chemical fertilizer industry started in 1906 with SSP production facility at Ranipet near Chennai  Started Operation in a big scale since 1940s, when the Fertilizer &Chemicals Travancore of India Ltd. and the Fertilizer Corporation of India, in India were set up in Kerala and Bihar.  Indian population continues to increase and the provision of adequate supply of food remains a challenge. This can be achieved only through further increases in yield, involving the enhanced use of fertilizers.3 2/26/2013
  • 4. Cont… The total production of N and P2O5 in India was 12.16 million tonnes and 4.36 million tonnes in 2010/11. However the consumption of N, P2O5 and K2O was 16.85, 8.04 and 3.4 million tones, respectively in 2010/11. India imports mainly urea, DAP and potassium chloride (MOP). Imports meet the entire MOP requirement as there are no known natural potash deposits in the country. In 2010/11, MOP imports was 3.34 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 2010/11).4 2/26/2013
  • 5. 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 & Fertilizers Limited  Rashtriya Chemicals and Fertilizers Limited (RCF)  National Fertilizers Limited (NFL)  The Fertilizers and Chemicals Travancore Limited (FACT)  Madras Fertilizers Limited(MFL)  FCI Aravali Gypsum & Minerals India Limited,5 Jodhpur 2/26/2013 Source: www.fert.nic.in
  • 6. Some Private Fertilizer Companies  The Scientific Fertilizer Corporation Pvt. Ltd  Coromandel Fertilizer  Deepak Fertilizer and Petrochemicals Corporation Limited  Apratim International  Devidayal Agro Chemicals  Gujatat State Fertilizer & Chemical limited  Tata Chemical and Fertilizer limited  Chambal Fertilizers  Nagarjuna Fertilizer and Chemical limited  Godavari Fertilizers and Chemical limited  Zuari Industries limited6 2/26/2013 Source: www.fert.nic.in
  • 7. Some Co-operative sector fertilizer companies  Indian Farmers Fertilizer Cooperative Limited(IFFCO)  Krishak Bharati Co-operative Limited (KRIBHCO)7 2/26/2013 Source: www.fert.nic.in
  • 8. Joint venture  OMFICO- Oman- ( KRIBHCO, IFFCO , Oman oil company)  ICS Senegal (IFFCO,GOI,SPIC)  IJC Jordan  IMACID Morocco  JIFCO Jordan  TIFERT Tunisia  Corporation with Syria, Russia, Indonesia, Australia, Ghana8 Source: GOI(2010), “Indian Fertilizer Scenario”, Department of February 26, 2013 fertilizers, Ministry of Chemical and Fertilizer, Govt. of India,
  • 9. Foodgrain Production Area under Foodgrains 250 212.5 128 190.6 127 126.9 200 126 151.2million tonnes 150 125 million ha 124 123 122.9 100 122 121 121.1 50 120 119 0 118 1981-82 to 1990- 1991-92 to 2000- 2001-02 to 2010- 91 01 11 1981-82 to 1990-91 1991-92 to 2000-01 2001-02 to 2010-11 Foodgrains yield There is 2 1.8 1.75 Inverse 1.55 1.6 relation-ship 1.4 1.19 between tonnes/ha 1.2 1 foodgrains 0.8 production and 0.6 area under 0.4 0.2 foodgrains. 0 1981-82 to 1990-91 1991-92 to 2000-01 2001-02 to 2010-119 2/26/2013 Source :www.Indiastat.com
  • 10. 10 000 tonnes 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 1974-75 1975-76 1976-77 2010-11 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05Source : Fertilizer Association of India,2011 2005-06 6000 MT 2006-07 2007-08 2008-09 2009-10 2010-11 Trend of Fertilizer Consumption (N,P and K ) in India: 1974-75 to 2/26/2013 P K N 8800MT
  • 11. Share of Primary Nutrients (N,P and K ) in Total Consumption of Chemical Fertilizers 120 100 10.1 11.4 10.2 8.5 11.5 24.1 23.6 21.4 20.6 25.6 80 68.6 K 67.9 67.9 % 60 65.7 P 62.9 N 40 20 0 1960s 1970s 1980s 1990s 2000s11 2/26/2013 Source :www.Indiastat.com and Fertiliser Association of India
  • 12. Growth Rate in Chemical Fertilizer Consumption and Foodgrains Production Growth rate in fertilizer Growth rate in consumption (%) foodgrains(%) Period Total Per ha. Production Yield Pre-green revolution period (1950-51 to 1966-67) 19.41 18.11 3.56 3.45 Post-green revolution period 8.75 8.49 2.65 2.53 Phase I (1967-68 – 1980-81) 9.9 9.29 2.27 1.87 Phase II (1981-82– 1991-92) 7.39 6.61 2.77 3.13 Post-reforms Period (1991-92 to 2009-10) 3.98 3.69 1.33 1.38 8th Five Year Plan 4.51 5.63 1.26 1.1 9th Five Year Plan 1.35 0.43 - 2.87 - 0.98 10th Five Year Plan 7.57 7.4 2.52 2.05 Rate of consumption of fertiliser is directly proportional to growth rate in production.13 Source: Fertiliser Association of India (2010) 2/26/2013
  • 13. Trends in Consumption of Plant Nutrients (N,P and K) Per Hectare of Gross Cropped Area in India: 1951 to 2009-10 Year 2010- 11 144 kg/ha 84 kg/ha 31 kg/ha 22 kg/ha14 2/26/2013 Source: Fertilizer Association of India Annual Report 2011
  • 14. Intensity of Chemical Fertilizer Use by Regions: 1971-72 to 2009-10 Indian is planning for II Second Green Revolution especially focusing on oilseed, pulse and foodgrains production in eastern and western region. By Sreekumar Raghavan , ICAR Scientist15 2/26/2013 Source: Fertilizer Association of India Annual Report 2011
  • 15. Million TonnesProduction and Consumption of N, P & K in India 18 16 14 12 N Production 10 N 8 Consumption P Production 6 P Consumption 4 2 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Year16 2/26/2013 Source: www.indiastat.com
  • 16. Per Hectare Chemical Fertilizer Consumption in States (kg/ha): 2009-10 and 2010-11 300 250 200 k g 150 / h 2009-10 a 100 2010-11 50 017 2/26/2013 Source: www.indiastat.com
  • 17. Per Hactere Consumption of Chemical Fertilizers in India Kg/ha 160 140 144.14 135.76 120 126.22 118.56 100 105.5 110.3 96.59 80 91.1384.4988.19 60 40 20 018 2/26/2013 Source: www.indiastat.com
  • 18. Classification of Districts According to Ranges of Chemical Fertilizer Consumption (N + P + K) % in Bracket Consumptio 1986-87 1989-90 1993-94 1996-97 1999-00 2002-03 2009-10 n kg/ha Above 200 3(0.9) 5(1.4) 9(2.3) 13(3.1) 31(6.6) 36(7.5) 112(20.77) 150-200 12(3.4) 21(5.7) 29(7.4) 36(8.6) 45(9.6) 47(9.7) 76(14.20) 100-150 32(9.2) 42 (11.4) 59 (15.1) 60(14.4) 94 (20.0) 92 (19.0) 105(19.47) 75-100 34(9.7) 46 (12.5) 56 (14.4) 59(14.1) 62 (13.2) 61 (12.6) 64(11.84) 50-75 55 (15.8) 70 (19.0) 77 (19.7) 73(17.5) 78 (16.6) 79 (16.4) 63(11.72) 25-50 92 (26.4) 85 (23.1) 79 (20.3) 93(22.2) 80 (17.1) 97 (20.1) 66(12.28) <25 121(34.7) 99 (26.9) 81 (20.8) 84(20.1) 79 (16.8) 71 (14.7) 52(9.73) Total 349(100) 368 (100.0) 390 (100.0) 418(100.0) 469(100.0) 483(100.0 538(100.0) Number of district, using fertilizer more than avg. consumption of India is consistently increasing.20 2/26/2013 Source: Fertiliser Association of India (2010)
  • 19. Crops wise consumption of Chemical Fertilizer in India Crops wise consumption of Chemical Fertilizer in India Vegetables Fruits 4% 2% Cotton Others 5% Rice 3% Wheat Sugarcane 5% Food Grains Rice Pulses 37% Oil Seeds Oil Seeds Sugarcane 9% Cotton Vegetables Pulses other 3% Fruits Food Grains 8% Others Wheat 61% 24%21 February 26, 2013 Source: Food and Agriculture Organization, 2011
  • 20. Million Tonnes Consumption of Major Chemical Fertilizer Products in India 30 25 20 15 Urea DAP 10 MOP 5 022 2/26/2013 Source: www.indiastat.com
  • 21. Share of Major Fertilizer Products in Total Consumption of N, P and K Nutrients : 2005-06 to 2009-10 Share of Urea in Share of DAP in Share of SSP in Share of MOP in Year Total N Total P Total P Total K 2005-06 80.6 59.8 8.5 67.9 2006-07 81.3 61.2 8.4 66.4 2007-08 82.8 63 7 65.6 2008-09 81.2 65.3 6.4 73.9 2009-10 78.8 66 6 76.5 2010-11 84.3 67.6 6.7 75 2011-12 86.5 70 7.1 73.6 Average 82.28571 64.7 7.157143 71.27142923 2/26/2013 Source: www.indiastat.com
  • 22. 24 February 26, 2013 Source: Fertilizer Association of India , Annual Report 2011
  • 23. Trends in Actual and Estimated Consumption of Fertilizer Nutrients in India: 1976-77 to 2009-1025 2/26/2013 Source: Fertilizer Association of India Annual Report 2011
  • 24. Current Scenario  Most companies are expecting approval for the huge capital expenditure plans form department of fertilizer and industry.  Indian fertilizer companies joined hands with Jordan, Senegal, Oman, Morocco, Egypt etc.  In India production of urea was 21.8 million tonnes where as consumption is 28.2 million tonnes in 2010-11, so 6.4 million tonnes of urea26 is imported by India in 2010-11. 2/26/2013 Source: www.
  • 25. Current Scenario  In same way production of DAP in India was 7.76 million tonnes where as the consumption was 11.4 million tonnes in 2010-11, so 3.64 million tonnes of DAP is imported by India in 2010-11  Fertilizer subsidy has taken largest share for 35.9% (62301/173420 Crore) of total subsidies in 2010-11  The demand of Chemical fertilizer is expected to increase by 4% in 2012-13.27 2/26/2013 Source: www.
  • 26. Fertilizer Regulation28 2/26/2013
  • 27. 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 government on Fertilizer Quality Control Laboratories.  There are 67 Fertilizer Quality Control Laboratories in the Country which includes 4 set up by Central Government as CFQC&TI, Faridabad and its three Regional Laboratories (Chennai, Mumbai, Kalyani29 (Kolkata) ). 2/26/2013
  • 28. Fertilizer Control Order  Fertiliser Control Order (1985) was promulgated under Section 3 of Essential Commodities Act,1955  Compulsory registration of fertilizer makers, importer and sellers.  Specifications for all fertilizer produced, imported or sold in India.  A set of regulations on the manufacture of fertilizer mixtures.  Packing and labeling of fertilizer bags.  Appointment of enforcement agencies and creation of quality control laboratories.  Banning of the manufacture or import and sale of non-30 2/26/2013 standard, spurious or adulterated fertilizers.
  • 29. Strategies for Industry Expansion  Modernization and revamping of existing fertilizer units.  Reviving some 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.  In the case of phosphatic fertilizer, the raw materials and intermediates are imported in large scale.31 2/26/2013
  • 30. Some Closed Plants32 February 26, 2013 Source :- GOI(2010), “Indian Fertilizer Scenario”.
  • 31. Summery and Conclusion  India’s fertilizer consumption is consistently increasing, while the total area under foodgrains is decreasing.  Intensity of per hectare fertilizer consumption of fertilizer is more in northern(91.5 kg/ha avg.) and southern (85.3 kg/ha avg.) region and lower in eastern (44.7 kg/ha avg.)and western(40.7 kg/ha avg.) region.  More than half of the total consumption of fertilizer is consumed by only two crops i.e. rice and wheat.33 2/26/2013  By 2020, fertilizer demand in country is projected
  • 32. Summery and Conclusion  Indian imports, which were about 2 million tonnes in early part of 2000, increased to 11.69 million tonnes of fertilizer in 2010-11.  The intensity of fertilizer use varied greatly from about 55 kg per hectare in Rajasthan to as high as 254 kg per hectare in Andhra Pradesh.  In 2009-10, 112 out of 538 district (20.8%) consumed more than 200 kg fertilizer per hectare.  Overall, availability of raw material, capital resources and price incentives will play critical role in meeting the fertilizer requirement in the country.34 2/26/2013
  • 33. References  GOI(2010), “Indian Fertilizer Scenario”, Department of fertilizers, Ministry of Chemical and Fertilizer, Govt. of India, New Delhi.  FAO(2011), “Fertilizer Used by Crops in India”, Food and Agriculture Organization of the United Nation, Rome.  FAI(2010-11), “ Indian Fertilizer Industry Annual Repot”, Fertilizer Association of India.  www.indiastat.com  www.fert.nic.in35 2/26/2013
  • 34. Questions?????36 2/26/2013