The document discusses India's chemical fertilizer industry and consumption trends. It notes that India is the third largest producer and second largest consumer of chemical fertilizers globally. While domestic production meets some of the demand, India still imports significant quantities of urea and DAP each year to meet consumption needs. The use of chemical fertilizers has increased dramatically over time and supported rising food grain production in the country.

1. Seminar Teacher
Dr. B.M.
Shashidhara
Major Advisor
Dr. P.K.
Mandanna
1
Prasoon Mishra
MBAL 1020
10/19/2013

2. Scientist view
 The
2
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 production
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3. Introduction
 India is the third largest producer and second largest
3
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.
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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
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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
5
(FACT)
 Madras Fertilizers Limited(MFL)
 FCI Aravali Gypsum & Minerals India Limited,
Jodhpur
Source: www.fert.nic.in
10/19/2013

6. Some Private Fertilizer Companies
 The Scientific Fertilizer Corporation Pvt. Ltd
 Coromandel Fertilizer
 Deepak Fertilizer and Petrochemicals Corporation








6
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 limited
Source: www.fert.nic.in
10/19/2013

7. Some Co-operative sector fertilizer
companies
 Indian Farmers Fertilizer Cooperative Limited(IFFCO)
 Krishak Bharati Co-operative Limited (KRIBHCO)
7
Source: www.fert.nic.in
10/19/2013

8. Joint venture
 OMFICO- Oman- ( KRIBHCO, IFFCO , Oman oil






8
company)
ICS Senegal (IFFCO,GOI,SPIC)
IJC Jordan
IMACID Morocco
JIFCO Jordan
TIFERT Tunisia
Corporation with Syria, Russia, Indonesia,
Australia, Ghana
Source: GOI(2010), “Indian Fertilizer Scenario”, DepartmentOctober 19, 2013
of
fertilizers, Ministry of Chemical and Fertilizer, Govt. of India,

9. Foodgrain Production
Area under Foodgrains
250
128
212.5
190.6
200
126.9
127
125
150
million ha
million tonnes
126
151.2
100
124
122.9
123
122
121.1
121
50
120
119
0
118
1981-82 to 1990- 1991-92 to 2000- 2001-02 to 201091
01
11
1981-82 to 1990-91
1991-92 to 2000-01
2001-02 to 2010-11
Foodgrains yield
tonnes/ha
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
1.75
1.55
1.19
There is
Inverse
relation-ship
between
foodgrains
production and
area under
foodgrains.
1981-82 to 1990-91
1991-92 to 2000-01
2001-02 to 2010-11
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9
Source :www.Indiastat.com

10. 1974-75
1975-76
1976-77
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
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
'000 tonnes
Trend of Fertilizer Consumption (N,P and K ) in India: 1974-75 to
2010-11
18000
16000
14000
12000
8800MT
10000
8000
6000 MT
6000
10
Source : Fertilizer Association of India,2011
N
P
K
4000
2000
0
10/19/2013

11. Share of Primary Nutrients (N,P and K ) in Total
Consumption of Chemical Fertilizers
120
100
10.1
%
80
60
11.4
10.2
8.5
24.1
23.6
21.4
20.6
68.6
67.9
65.7
67.9
11.5
25.6
K
P
62.9
N
40
20
0
1960s
11
1970s
1980s
1990s
2000s
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Source :www.Indiastat.com and Fertiliser Association of India

12. Growth Rate in Chemical Fertilizer Consumption and
Foodgrains
Production
Growth rate in fertilizer
consumption (%)
Period
Growth rate in
foodgrains(%)
Total
Per ha.
Production
Yield
19.41
18.11
3.56
3.45
8.75
8.49
2.65
2.53
9.9
9.29
2.27
1.87
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
Pre-green revolution period
(1950-51 to 1966-67)
Post-green revolution period
Phase I (1967-68 – 1980-81)
Phase II (1981-82– 1991-92)
Rate of consumption of fertiliser is directly proportional to growth rate in production.
13
Source: Fertiliser Association of India (2010)
10/19/2013

13. Trends in Consumption of Plant Nutrients (N,P and K) Per
Hectare
of Gross Cropped Area in India: 1951 to 2009-10
Year 201011
144 kg/ha
84 kg/ha
31 kg/ha
22 kg/ha
14
10/19/2013
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 Scientist
15
10/19/2013
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
Consumption
P Production
8
P
Consumption
6
4
2
0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Year
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16
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
a 100
2009-10
2010-11
50
0
10/19/2013
17
Source: www.indiastat.com

17. Kg/ha
Per Hactere Consumption of Chemical Fertilizers
in India
160
140
120
100
96.59
80 91.1384.4988.19
60
144.14
135.76
126.22
118.56
105.5 110.3
40
20
0
18
Source: www.indiastat.com
10/19/2013

18. Classification of Districts According to Ranges of
% in
Bracket
Chemical Fertilizer Consumption (N + P + K)
Consumptio
n kg/ha
1989-90
1993-94
1996-97
1999-00
2002-03
2009-10
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
20
1986-87
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.
10/19/2013
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
2%
4%
Others
Cotton
5%
3%
Rice
Wheat
Sugarcane
5%
Food Grains
Rice
37%
Pulses
Oil Seeds
Oil Seeds
9%
Sugarcane
Cotton
Vegetables
Pulses
3%
other
Food Grains
8%
Fruits
Others
Wheat
24%
61%
October 19, 2013
21
Source: Food and Agriculture Organization, 2011

20. Million Tonnes
Consumption of Major Chemical Fertilizer Products in India
30
25
20
Urea
DAP
MOP
15
10
5
0
10/19/2013
22
Source: www.indiastat.com

21. Share of Major Fertilizer Products in Total Consumption of N, P
and K Nutrients : 2005-06 to 2009-10
Year
Share of Urea in
Total N
Share of DAP in Share of SSP in Share of MOP in
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
71.271429
10/19/2013
23
Source: www.indiastat.com

22. 24
October 19, 2013
Source: Fertilizer Association of India , Annual Report 2011

23. Trends in Actual and Estimated Consumption of Fertilizer
Nutrients in India: 1976-77 to 2009-10
25
10/19/2013
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
26
tonnes where as consumption is 28.2 million
tonnes in 2010-11, so 6.4 million tonnes of urea
is imported by India in 2010-11.
10/19/2013
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.
10/19/2013
27
Source: www.

26. Fertilizer Regulation
28
10/19/2013

27. Central Fertilizer Quality Control and
Training Institute
 Undertaking inspection and analysis of imported and





29
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, Kalyani
10/19/2013
(Kolkata) ).

28. Fertilizer Control Order
 Fertiliser Control Order (1985) was promulgated under






30
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 non10/19/2013
standard, spurious or adulterated fertilizers.

29. Strategies for Industry Expansion
 Modernization and revamping of existing fertilizer





31
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.
10/19/2013

30. Some Closed Plants
32
Source :- GOI(2010), “Indian Fertilizer Scenario”.
October 19, 2013

31. Summery and Conclusion
 India’s fertilizer consumption is consistently
33
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.
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 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
10/19/2013

33. References
 GOI(2010), “Indian Fertilizer




35
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.in
10/19/2013

34. Questions?????
36
10/19/2013