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
Naturally-occurring compds such as peat, or made
through natural processes (such as composting) or
chemical processes (such as the Haber process).
Fertilizers typically provide, the three major
plant nutrients (nitrogen, phosphorus, and
Secondary plant nutrients (calcium, sulfur,
Trace elements (or micronutrients) with a role in
plant nutrition: boron, chlorine, manganese, iron,
zinc, copper and molybdenum.
Global production and consumption of fertilizers
Indian fertilizer industry
Indian production ,consumption & import trend.
Policies (subsidies & regulations)
Strategies for industry expansion
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
The private sector produced 44.73 % of nitrogenous
fertilizers and 62.08 % of phosphatic fertilizers in 2006-
Total production of fertilizers in india-206.5mt .
The production of urea in India has reached
near self-sufficiency. The requirement of the
nitrogenous fertilizers is met through the
In the case of phosphatic fertilizers, the raw
materials and intermediates are imported in
. The requirement of potash (K) is met entirely
through imports. No fertilizer unit of India has
any reserve of potash.
Global production &
consumption of fertilizers
Indian fertilizer industry
65 large-sized fertilizer plants in India .
20 units-DAP & complex fertilizers
13 units-ammonium phosphate & CAN
Nitrogenous fertilizers-88% urea ,10%
DAP & 2% ammonium fertilizers.
co2 emmission from fertilizers
Fertilizer use and crop production
Food Grains 8%
Oil Seeds 9%
Figure 2: Crops wise consumption of Fertilizer in India
PRODUCTION AND IMPORT OF FERTILISERS(IN '000'T)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
CONSUMPTION OF CHEMICAL FERTILISER( LAKH TON)
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
% shares of consumption of fertilizers in 2006-07
% shares of states in fertilizer consumption in 2007-08
andhra pradesh 2667.58
uttar pradesh 3755.92
west bengal 1374.74
The public sector companies in Indian fertilizer market are
· 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
Some Private fertilizer Companies
The Scientific Fertilizer Co Pvt Ltd
Deepak Fertilizers and Petrochemicals Corporation Limited
Devidayal Agro Chemicals
Gujarat State Fertilizers &Chemicals Limited
Tata Chemicals Limited
Nagarjuna Fertilizers and chemicals limited
Godavari Fertilizers and Chemicals limited
Zuari Industries limited
CHALLENGES IN FERTILISER
Gap between demand and supply
Greater dependency of country on imports( also
Unable reduce burden of government in
Uncertainties in government policies
Small size of older plants
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
10% increase in Urea price in April 2010
Fertilizer subsidy has taken largest share for
58.7% of total subsidies in 2008-09
projected production of urea
production million MT/annum
In both developed and developing countries.
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.
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.
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
New fertilizer pricing policy
Started from 1 April 2003
Objective-encouraging efficiency based fertilizer pricing
High Powered Fertilizer Pricing Policy Review
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
Third stage(2006-10)-conversion of all farms into natural
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
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
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)
source-government of India
% shares of major states in total fertilizer subsidy in
state wise fertilizer use /ha ofgrosscropped area by size ofholding,2001-02
maharashtra rajasthan westbengal A.P.
concentration of fertilizer subsidy on major crops in
total fertilizer use
fertilizers (government of
subsidies on indegenous and imported fertilizers
Total Subsidy Subsidy on
Total Subsidy subsidy on
Total Subsidy on fertilizers
Fertilizer control order
Compulsory registration of fertilizer makers, importers
Specifications for all fertilizers produced, imported or
sold in India.
A set of regulations on the manufacture of fertilizer
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.
Central fertilizer quality control and
Undertaking inspection and analysis of imported
and indigenous fertilizers
Standardization and development of method of
Training of fertilizer enforcement officers and
Acting as a referee laboratory
Providing technical guidance to the Central and
State governments on Fertilizer Quality Control
Fertilizer movement control order(1973)
STRATEGIES FOR INDUSTRY
Modernization and revamping of existing
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