FACTS ABOUT INDIA FERTILIZER INDUSTRY
India eased controls on several fertilisers and raised prices of the popular
urea nutrient by 10 percent. The decision is expected to help improve
India's fertiliser mix, which is heavily skewed in favour of urea, that
attracts the biggest subsidies.
Here are some key facts about India's fertiliser sector :
• India has so far imposed tight controls on fertiliser prices, to help
• India's fertiliser subsidy bill in 2008/09 amounted to 758.49 billion
rupees ($16.4 billion).
• Small and marginal farmers account for 82 percent of rural land
holders, making fertiliser subsidy a sensitive political issue.
• There has been no significant investment to raise fertiliser capacity
in India in the last 10 years because of tight government controls
and policy uncertainty.
• In 2008/09 India imported 21 percent of the urea it used, 67 percent of
diammonium phosphate (DAP), and 100 percent of muriate of potash (MOP).
• Nitrogenbased urea accounts for more than half of India's fertiliser consumption
because of heavy government subsidy on this nutrient
• Phosphate fertilisers account for a fifth of Indian demand, while
potash accounts for 8 percent.
• Excessive use of certain fertilisers and inadequate use of other
nutrients has reduced India's fertiliser response ratio, which
indicates how much a crop gains by using one kg of fertiliser.
• The ratio has fallen from 13.4 kg in 1970 to 3.7 kg in recent years,
indicating diminishing returns from fertiliser use.
• A government research body found that most soil samples in India
were deficient in many nutrients.