Page 171 - CW E-Magazine (23-4-2024)

Special Report Special Report

Fertiliser and agriculture sectors in 2023-24 in Kharif 2023, while in rabi 2023- ever, additional subsidy on DAP of
24, it may come down to 5.9%. DAP
Rs. 4,500 per tonne notifi ed for rabi
ndia is now the largest populated other major fertilisers, including urea to February 2024 was 2.91-mt, up by and NP/NPK consumption was 21.8% 2023-24 has been withdrawn. There-
country in the world, surpassing (10.7%), DAP (2.5%) and NP/NPKs 64.2% compared to the corresponding and 25.0% higher during kharif 2023, fore, there will be reduction in subsidy
IChina. Population of the country (1.3%) showed an increase. period of the previous year. respectively, over kharif 2022, but the on DAP in kharif 2024 compared to
will continue to rise. Nearly 50% of the same may decrease by 13.1% and 4.1% rabi 2023-24 by 3.8%.
population directly or indirectly depends It is estimated that production of For the year as a whole, import during rabi 2023-24 over rabi 2022-23.
on agriculture for its livelihood. It urea may be around 31.3-mt in 2023-24, of urea, DAP, MoP and NPKs may SSP sales are most affected in rabi Funds availability
has always been in the agenda of the 9.8% higher than in 2022-23. Three be around 6.8-mt, 5.4-mt, 3.0-mt and 2023-24, and may show a decline of Government of India has been pro-
Government to ensure food and nutritional urea plants, which were commissioned 2.2-mt, respectively, during 2023-24, 27.8% over rabi 2022-23 while in kharif viding suffi cient funds for fertiliser
security to the teeming population. in 2022-23, contributed partially to the against 7.6-mt, 6.6-mt, 1.9-mt and 2.8-mt, 2023, it showed an increase of 9.8% subsidy for last couple of years. Dur-
increased production of urea. These respectively, in 2022-23. over kharif 2022. MoP sales during ing 2022-23, the Government had bud-
Indian agriculture depends on vaga- plants may produce about 3.5-mt in kharif 2023 was up by 8.6%, while it geted Rs.1,05,22-crore for fertiliser
ries of weather, and nearly 75% of total 2023- 24, an increase of 2.3-mt over Consumption may decline by 6.7% in rabi. subsidy. However, an unusual spike
rainfall is generally received during the 2022-23. Consumption (Direct Benefi t Trans- in international prices caused disrup-
South-West monsoon period from June fer, DBT, sale) of urea and MoP from Agricultural output tion in the availability and prices of
to September. There has been inter- Production of DAP and NP/NPKs is April 2023 to February 2024 was During the current year, cumulative duction of urea is imported. More than raw materials and fi nished fertilisers.
month, inter-area and inter-State varia- expected to be 4.4-mt and 9.4-mt res- 34.21-mt and 1.52-mt, respectively – rains received during South-West mon- 90% of phosphatic fertilisers is met This led to a huge increase in subsidy
tions in this rainfall pattern. A challenge pectively, which is higher by 2.3% and more or less at the same levels of the soon was 94% of long period average by imports, either in the form of raw requirement to insulate the farmers and
for sustainable agriculture is also being 1.3%, respectively during 2023-24 over corresponding period of previous year. (LPA). However, in August 2023, it materials or fi nished products, and 100% agriculture from skyrocketing fertiliser
witnessed due to climate change. Agri- 2022-23. However, consumption of DAP and was 36% below LPA. demand of MoP is met by import. prices. The total subsidy on fertilisers
culture is the mainstay of Indian eco- NP/NPKs at 10.48-mt and 10.63-mt was increased to Rs. 2,51,340-crore
nomy and contributes about 18% to GDP. However, production of SSP is showed an increase of 4.4% and 10.5%, The quarterly estimate of Gross Policy measures for 2022-23. Similarly, the budget
expected to decline by 18.7% during respectively, over the corresponding Value Added (GVA) for third quarter The Nutrient-Based Subsidy (NBS) allocation for fertiliser subsidy was
Fertiliser is an integral component the period. period of the previous year. (Oct-Dec, 2023) for agriculture has rates for phosphatic and potassic ferti- Rs. 1,75,103-crore during 2023-24, which
of agricultural development, be it in been reported to be a contraction by lisers were notifi ed by the Department has been revised to Rs. 1,88,902-crore
India or any country of the world. India Imports Consumption of urea and MoP is 0.8% against positive growth of 6.5% of Fertilisers, Government of India on due to price volatility of fertilisers and
is progressing well in agriculture as Import of urea, DAP and NP/NPKs expected to be 35.77-mt and 1.63-mt for all sectors as per National Statistical 1st March, 2024. Timely announcement raw materials in the international mar-
well as fertiliser sector fronts. was lower by 9.9%, 13.6% and 18.0% during 2023-24, i.e., at the same Offi ce. of rates will help the fertiliser industry ket during the year.
from April 2023 to February 2024, levels of 2022-23. However, consumption to plan their business strategies related
Production compared to the corresponding period of of DAP and NP/NPKs may be around As per 2nd Advance Estimates to production, import, movement/logis- The budget allocation for fertiliser
Production of major fertilisers from the previous year. The absolute import 10.86-mt and 11.09-mt during 2023-24 released by the Ministry of Agriculture tics and sale of fertilisers to the farmers. subsidy has been kept at Rs.1,64,103-
April 2023 to February 2024 showed volumes for 2023-24 (up to February compared to 10.42-mt and 10.07-mt, and Farmers Welfare, production of crore for the year 2024-25, out of
an increase of 4.5% compared to cor- 2024) for urea, DAP and NP/NPKs during 2022-23 respectively. In case of food grain during kharif 2023 is esti- Three new grades of fertilisers have which urea and P&K subsidy is at
responding period of previous year. are 6.7-mt, 5.3-mt and 2.0-mt, respec- SSP, consumption has come down to mated at 154.2-mt, showing a fall of been included in NBS scheme with Rs. 1,19,000-crore and Rs. 45,000-crore,
Except production of SSP (-20.3%), tively. Import of MoP from April 2023 4.40-mt during April-February 2023-24, 1% compared to kharif 2022. Produc- effect from 1st April, 2024: respectively. Adequacy of allocation

as against 4.80-mt during April- tion during rabi 2023-24 is estimated at  11-30-14 fortifi ed with magnesium, will depend on the international prices
February 2022-23, showing a decline 155.2-mt, a decline by 1.7% compared zinc, boron and sulphur; of energy, fertilisers and raw materials

of 8.4% during the period. to rabi 2022-23. Production of wheat  Urea-SSP-complex (5-15-0- 10); and during the year.
will depend on temperature to remain  SSP (0-16-0-11) fortifi ed with mag-

Season-wise consumption congenial for grain formation. There nesium, zinc and boron. Fertiliser industry has always been
Comparing season-wise consump- has been incidences of hailstorms in working in tandem with the Govern-
tion of fertiliser products in 2023-24, certain areas, which may affect the pro- Fortifi ed fertilisers will also be ment to make fertilisers available to
it is observed that all products have shown duction of wheat in such areas. eligible for additional subsidy for farmers across the country as per their
higher consumption during kharif 2023 fortifi cation with zinc (Rs. 500 per demand through meticulous planning
compared to kharif 2022. However, in International markets tonne) and boron (Rs. 300 per tonne). of production, import, and logistics.
rabi 2023-24, consumption of all ferti- The international market is quite up to the last mile delivery and will
lisers has been showing a downward volatile and ups and downs in prices of Keeping the same rates of subsidy continue to do so.
trend compared to rabi 2022-23. raw materials and fi nished products are on N, K and S, the rate on P O has
2
5
observed from time to time. About 80% been increased by 37.9% for kharif [Reproduced from Indian Journal of
Urea consumption was 6.6% higher of feedstock, i.e., natural gas, for pro- 2024 compared to rabi 2023-24. How- Fertilisers, 20 (3): 214-215, March, 2024]
170 Chemical Weekly April 23, 2024 Chemical Weekly April 23, 2024 171

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