Introduction Production ,consumption and import of fertilizers Imbalance of fertilizers. Prices of NPK. Prices of NPK relative to MSP (rice & wheat) Speciality fertilizers and consumption after NBS Balanced Fertilization GST and fertilizers conclusion

1. Sunil kumar B.R
20637

2. Contents
• Introduction
• Production ,consumption and import of fertilizers
• Imbalance of fertilizers.
• Prices of NPK.
• Prices of NPK relative to MSP (rice & wheat)
• Speciality fertilizers and consumption after NBS
• Balanced Fertilization
• GST and fertilizers
• conclusion

3. 3
LOW
Medium
High
Nitrogen content in Indian soils
Source: IISS, Bhopal

4. 4
states Fertilizer
cost
Total cost Fertilizer share
in total cost
Total returns Fertilizer share
in gross returns
Andhra Pradesh 1181 6191 19.1 8482 13.92
Gujarat 476 2250 21.2 5773 8.25
Haryana 1025 6228 16.457 17144 5.98
Karnataka 821 2779 29.543 7908 10.38
Kerala 573 2270 25.242 5872 9.76
Madhya Pradesh 587 2284 25.700 6538 8.98
Maharashtra 835 2654 31.461 6675 12.51
Punjab 1765 11768 14.998 28117 6.28
Tamilnadu 642 2538 25.295 5012 12.81
Telangana 1141 4267 26.740 8666 13.17
Uttar Pradesh 459 1790 25.642 4912 9.34
All India 526 2129 24.706 5542 9.49
LION SHARE OF FERTILIZERS IN COST OF PRODUCTION
Based on Situation assessment survey, 2014

5. INTRODUCTION
• Fertilizer Contributing as much as 50 percent of the
yield growth in asia (hopper 1993 and fao 1998).
• Others have found that one-third of the cereal
production world-wide is due to the use of fertiliser
(bumb 1995)
• Fertiliser was as important as seed in the green
revolution (tomich et. Al. 1995)

6. Trend of Area ,production and yield of food
grain crop
0
500
1000
1500
2000
1985-1995 1995-2005 2005-2015
YIELD 1342.2 1626 1922
Kg/ha
YIELD
0
50
100
150
200
250
1985-1995 1995-2005 2005-2015
PRODUCTION 167.518 198.151 238.721
mt
PRODUCTION
120
122
124
126
1985-1995 1995-2005 2005-2015
AREA 124.881 121.793 123.42
000HA
AREA
43%
42%
source-Authors calculation
based on FAI 2014-2015.

7. Production of N and P (000 tonnes)
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
1985-86
1987-88
1989-90
1991-92
1993-94
1995-96
1997-98
1999-200
2001-02
2003-04
2005-06
2007-08
2009-10
2011-12
2013-14
PRODUCTION
"N"
PRODUCTION
"P"
4110
12435
India 3rd in production next to Chaina and USA. source-Authors calculation
based on FAI 2014-2015.

8. Trend of Fertilizer Consumption (N,P and
K ) in India:(000tonnes)
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
18,000.00
20,000.00
n
p
k
2532
6098
16945
INDIA 2nd in consumption after
chaina
source-Authors calculation based on
FAI 2014-2015.

9. Gap between consumption and production of
fertilizers(000tonnes)
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
total consumption
total production
total import(NPK)
16544
25576
9303
importing about 36%of total consumption and
56%of total production
Main causes for this stagnation in domestic production:
• Lack of raw material for potassic and phosphatic fertilisers.(Increase
price of gas for urea)
• Low investment in the fertiliser sector.
source-Authors calculation
based on FAI 2014-2015.

10. Indian share with world in consumption
and production(percentage)
8.62
11.04
9.13
0.00
13.54
15.16
13.98
7.00
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
TOTAL N P K
share of india with world production share of india with world consumption
source-Authors calculation based on FAI 2014-2015.

11. All India consumption of plant nutrients per
unit of gross cropped area
0
20
40
60
80
100
120
140
160
N
P
K
total
87.17
13.03
131.57
31.37
Kg/ha
source-Authors calculation based on FAI 2014-2015.

12. State wise consumption of plant nutrients per
unit of gross cropped area
2014-15
Total N P K
Andhra Pradesh 218.4 135.2 55.7 27.5
Punjab 218.3 171.8 41.7 4.8
telangana 206.45 145.3 47.1 14.05
Haryana 203.4 158.9 38.8 5.7
Tamil Nadu 197.4 117 43.4 37
Bihar 173.1 128.6 30.2 14.3
West Bengal 151.6 78.2 40.4 33
Gujarat 133.6 96.6 27.9 9.1
Maharashtra 128.6 70.4 34.8 23.4
Odisha 98.6 62 24.9 11.7
(Kg/ha)
source-Authors calculation based on FAI 2014-2015.

13. Consumption of plant nutrients per unit of
gross cropped area in region wise
76.9
133.3
87.2
109.1
59.5
27.3
36
31.4
44.6
25.5
19
6.8
13
26.7
8.8
0
20
40
60
80
100
120
140
EAST NORTH All India SOUTH WEST
N P K
source-Authors calculation based on FAI 2014-2015.

14. Imbalance in fertilizer consumption ratio
Year N P K Imbalance
2003-04 6.9 2.6 1.0 1.7
2004-05 5.7 2.2 1.0 1.0
2005-06 5.3 2.2 1.0 0.7
2006-07 5.9 2.4 1.0 1.1
2007-08 5.5 2.1 1.0 0.9
2008-09 4.6 2.0 1.0 0.3
2009-10 4.3 2.0 1.0 0.2
2010-11 4.7 2.3 1.0 0.4
2011-12 6.7 3.1 1.0 1.7
2012-13 8.2 3.2 1.0 2.5
2013-14 8.0 2.7 1.0 2.3
source-Authors calculation based on FAI 2014-2015

15. Imbalance in fertilizer consumption
imbalance index 2015
EAST 0.33
Bihar 2.88
Nagaland 0.79
Odisha 0.75
Tripura 1.07
West Bengal 1.04
NORTH 9.21
Haryana 14.06
Punjab 18.76
Uttar Pradesh 7.58
Uttarakhand 8.59
SOUTH 0.20
Andhra Pradesh 0.53
telangana 2.52
Karnataka 0.64
Tamil Nadu 0.68
Puducherry 0.64
A & N Islands 1.06
WEST 1.68
Gujarat 3.87
Chhattisgarh 1.60
Maharashtra 0.64
All India 1.58
I = √ {(Na- Nn)2+(Pa- Pn)2+(Ka- Kn)2}/3
Reasons for such imbalances are:-
1 Government’s steps to bring Urea (N) under price control
mechanism and make it very cheap compared to other kinds of
fertilizers.
2 Non-availability of sufficient P and K fertilizers in farmlands
across the country and higher prices when available has led to
reduced usage.
3 Lack of awareness among the farming community about the
dangers of fertilizer imbalance, and the harm it could cause to
the soil and future crop yield.
source-Authors calculation based on FAI 2014-2015.

16. All India Plant Nutrient Consumption Ratio
N P K
1991-92 5.91 2.44 1.00
1992-93 9.53 3.22 1.00
2000-01 6.97 2.69 1.00
2001-02 6.78 2.63 1.00
2010-11 4.71 2.29 1.00
2011-12 6.72 3.07 1.00
2013-14 7.98 2.68 1.00
2014-15 6.69 2.41 1.00
Partial decontrol of
Fertilizers in 1991-
92 and 2010-1 1
Causes
1.Deficiency of secondary and micro nutrients
2.Damages to environments (contaminate ground water,
health hazards)
3.Decrease crop to fertilizer response ratio
source-Authors calculation based on FAI 2014-2015.

17. Relatively Low Fertilizer Use in India
egypt chaina korea
bangal
adesh
pakista
n
india world canada s africa nepal
Series1 359 433 275 251 130 144 114 74 56 17
0
50
100
150
200
250
300
350
400
450
500
Kg/haofarablelandincludingpermanent
crops
REASON
Low Fertile Land And Loss Of Fertilizer
source-Authors calculation based on FAI 2014-2015.

18. Imbalances in fertiliser attributed to
• Price structure of fertiliser
• Variations in subsidies available on different types of
fertilizers.

19. Trend in price of Urea, DAP,MOP (Rs/kg)
0
5
10
15
20
25
30
35
40
45
50
N
K
P
twice P DAP
Annual growth rate NPK price 3.2:6.4:6.8 in %
source-Authors calculation based on FAI 2014-2015.
40%
RPS to NPS

20. Price per Kg of nutrients
UREA DAP MOP SSP
1985-1995 5.64 0 9.52 0 3.61 0 8.83
1995-2005 9.25 0 15.58 0 6.98 0 18.19
2005-2015 11 0 25.6 0 13.6 0 30.6
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
Rs/kg
Rs/kg
source-Authors calculation based on FAI 2014-2015.

21. Fertilizer & foodgrain prices
Intimatelyrelated
Price of
fertilizers &
price of MSP
affect
Fertilizer
Consumption
Byinfluencing
Input :Output
Relation
The Government efforts have been to regulate the
fertilizer and food grain prices in such a way that
the fertilizer use increases for increasing crop
production.

22. Trend in price of rice and wheat (Rs/kg)Percent increase in prices(1998-2015)
Pr 68% Pn 39%
Pw 62% Pp 62%
Pk 77%
0
2
4
6
8
10
12
14
16
1998-99
1999-200
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
price per kg(grain) Pr
price per kg(grain) Pw
source-Authors calculation based on FAI 2014-2015.

23. Prices of N, P and K relative to MSP of
paddy
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
Pn/Pr
Pp/Pr
Pk/Pr
source-Authors calculation based on FAI 2014-2015.

24. Prices of N, P and K relative to MSP of
wheat
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Pn/Pw
Pp/Pw
Pk/Pw
source-Authors calculation based on FAI 2014-2015.

25. Growth rates in prices of N,P and K
relative to MSP of wheat and paddy
Wheat Pn/Pw Pp/Pw Pk/Pw
1980-81 to 1990-91 -3.94 -3.95 -3.91
2005-06 to 2015-16 -4.87 0.80 7.98
1980-81 to 2015-16 -4.14 -1.30 -0.92
Rice Pn/Pr Pp/Pr Pk/Pr
1980-81 to 1990-91 -4.69 -4.71 -4.65
2005-06 to 2015-16 -7.49 -2.00 4.97
1980-81 to 2015-16 -4.17 -1.34 -0.95
source-Authors calculation based on FAI 2014-2015.

26. Comparison of MSP of rice & wheat to
urea price in selected countries.
Source: Agricultural Statistics at a Glance
2014 and Fertiliser Statistics 2012-13

27. Subsidy
• Total subsidy 2.41lakh crore 2015-16.
• For 3F’S 2.31lakh crore, fertilizer subsidy the third-
biggest share of India’s total subsidy .
• Today subsidy of fertilizer was 72 thousand crores.
• Urea(51000cr) is lion share in total fertilizer subsidy
(domestic>imported), followed by decontrolled
fertilizers(19000cr).

28. Increase in fertiliser
use
Increase in subsidy
content per unit of
fertiliser.
Increase in the world price of the fertilisers and inputs were
attributed by 94 per cent of the increase in subsidy while
only 6 per cent was due to increase in consumption which
contributed to fiscal deficit (ashok gulati).

29. Trend in fertilizer subsidy & food subsidy
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
total fertilizer
subsidy in
crores
total food
subsidy
Rs crore
source-Authors calculation based on FAI 2014-2015.

30. Previous Subsidy Policy's Made
• The subsidy burden of the government has been
increasing.
• Import dependency in the case of phosphatic and
potassic fertilisers.
• No much increase in price of domestic fertilizer.
To solve this issues NBS-2010, which consider
international prices, exchange rate, inventory level as
well as the existing MRP of DAP and MOP.(fixed
subsidy floating price)

31. NBS for nutrient N,P K,S(Rs per kg)
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
N 46.454 27.153 24 20.875 20.875 20.875
P 52 32.338 21.804 18.679 18.679 18.679
K 48.474 26.756 24 18.833 15.5 15.5
S 4 1.677 1.677 1.677 1.677 1.677
0
10
20
30
40
50
60
RS
source-Authors calculation based on FAI 2014-2015.

32. Before and after NBS
total FS
(Rs crs)
Consumption
(mt)
Production
(mt)
price
urea
(Rs)
price
DAP
(Rs)
price K
MOP
(Rs)
2004-2005 18460 18398 15343 10 16 7
2010-2011 62301 28122 16549 11.5 17.9 8.4
2014-2015 70967 25576 16544 11.6 44 26
source-Authors calculation based on FAI 2014-2015.

33. Scope for Specialty Fertilizers
Fertilizers applied in Special condition of Soil & plant
Fertilizers applied for Specialized action in plant.
Mainly production of high-value agricultural crops
• All Water soluble Fertilizers
• All Secondary & Micronutrients
• Slow & Controlled release fertilizers – NCU,
SCU, UDP etc.
• Area & Crop Specific Fertilizers- Customized
fertilizers, Fortified fertilizers

34. Water soluble Fertilizers(WSF)
Fertilizer Use efficiencies of conventional fertilizers
N- 30- 45%
P- 10-30%
K-50%
This leads to lower return on money spent on per unit of
fertilizer, along with increased soil salinity.
• FUE of WSF @ 80-85%
• 100% Water soluble fertilizers, with low salt ,
chloride content .

35. Consumption of WSF after NBS
0
20000
40000
60000
80000
100000
120000
140000
tonnes
increase
twice
source-Authors calculation based on FAI 2014-2015.

36. Consumption of S after NBS
• Also 45% growth in consumption of Zn , B, Fe &
Mn products
• 49% increase In production of customised fertilizers
Total 's' in tonnes
Average consumption
2001-02 to2008-09 643.9
2009-2010 to 2014-15 975.5
S' increased by 34 %
source-Authors calculation based on FAI 2014-2015.

37. Slow & Controlled release fertilizers
• Neem Coated Urea
• Sulphur Coated Urea
• Urea Deep Placement (UDP)
Neem coated urea is cheap and creates employment in
rural area.
Neem Coating of Urea fertilizers contain 1/5 to 1/3 of
its total N in insoluble or slow release form. This slow
release nitrogen is helps to
(1)decrease the number of applications
(2) reduce burn potential
(3) give uniform growth
(4) increase N efficiency by reducing leaching and
volatilization loss.
rice yields jump 9.6 per cent and wheat by 6.9 per
cent(anonymous)

38. Scope for NCU
• Neem Coating of Urea: 25th May, 2015.
• it has been made mandatory for all the indigenous
producers of urea to produce 100% of their total
production of subsidized urea as Neem Coated urea.
• the use of neem-coated urea could save the government
Rs 6,500 crores in subsidy annually(ministry).
• Since NCU cannot be used for industrial purposes,
illegal diversion of subsidized urea to non-agricultural
use would not be possible. the government aims to
prevent subsidy leakages.

39. Production of Neem coated urea after NBS
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
production tonnes
86% increase
NCU 60 lakh tonnes source-Authors calculation
based on FAI 2014-2015.

40. Imbalanced Use of Nutrients: Pre- & Post-NBS
Period
2010-11 2014-15
N P K N P K
Punjab 19.1 5.9 1 35.8 8.7 1
Haryana 20.5 7.1 1 27.9 6.8 1
Andhra Pradesh 3.9 2.1 1 4.9 2.0 1
Tamil Nadu 2.1 0.9 1 3.2 1.2 1
Bihar 5.8 1.9 1 9.0 2.1 1
West Bengal 2 1.4 1 2.4 1.2 1
Odisha 3.3 1.7 1 5.3 2.1 1
Gujarat 6.9 2.9 1 10.6 3.1 1
All India 4.7 2.3 1 6.7 2.4 1
source-Authors calculation based on FAI 2014-2015.

41. Balanced Fertilization
• Balanced fertilization means the application of all the
deficient plant nutrients in sufficient amounts, appropriate
forms and ratios.
• The soil test data arising out of soil tested laboratories help
in formulating recommendation for balanced fertilization.Balanced fertilization can be aimed:
• To ensure increased crop yields.
• To improve cost: benefit relationship.
• To improve quality of crops.
• To correct soil nutrient deficiency.
• To maintain or improve soil fertility.
• To avoid or check environmental/soil/underground water pollution.
• To restore soil fertility impaired through imbalanced fertilizer use

42. GST and fertilizers
• Fertiliser sector which is currently allowed a number of tax
concessions/exemptions both at input and output levels and there
is also heavy subsidy on sale of fertilisers from both central and
state.
Impact of proposed GST on fertiliser industry
• The combined impact of these exemptions or concessions has been
that the total incidence of tax on fertiliser products has been
reduced significantly and is about 5-10% of the value of products.
• GST at a level of 18%, the incidence of tax on fertilisers will
increase significantly. This made
Either to • Increase the retail prices of fertilisers
• Increase the fertiliser subsidy or both
Another issue
Before GST:- incidence of tax on inputs is higher than the
incidence of tax on finished fertilisers due to subsidy element.
After GST:- taxing the subsidy result in
accumulation of large amount of Unutilized input tax credit
blocking industry’s funds.
Another issue
Subsidy given almost to 70% of cost of urea This is not
taxed at present.
On introduction of DBT, the GST will also be levied on
70% subsidy. This will
increase the incidence of tax on the fertiliser products
Solution?
1.Zero rate GST
2.No increase in cost of production
directly/indirectly.

43. Agricultural subsidies (producer support
estimate) in selected countries(US $ million)
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
European union
Japan
India
USA
Turkey
Rep. of Korea
Canada
Switzerland
source-Authors calculation based on FAI 2014-2015.

44. Conclusion
• The increase in fertilizer prices gradually, which may be
commensurate with the support prices for food grain and
other agricultural commodities could be one way to check
the fertilizer subsidy.
• The most effective way could be to improve the fertilizer
use efficiency which would result into improved
profitability of the farmers by way of saving in fertilizer
use for a given land area and getting higher production per
unit.
 Fertiliser products are likely to suffer from higher
incidence of taxes with implementation of GST. There is a
need for the government to pay special attention to
fertiliser sector.

45. • Lack of scientific awareness amongst farmers. The farmers
are mostly illiterate. Farmers don't understand the
requirements of different types of fertilizer depending upon
soil type and geography.
• Govt. has shifted from urea to nutrient based subsidy. This
scheme provides for subsidy per unit of nutrient added in
the fertilizer. Thus the manufactures are now free to mix the
nutrients as per the soil requirement.
• Initiative like soil health card will ensure that the status of
nutrition of soil is regularly provided to the farmers and
strengthening the soil testing labs need.
• NCU helps in increase NUF , increase employment ,and
reduce the urea from non agricultural use, the government
aims to prevent subsidy leakages.