Govt assures timely supply of fertilizers to companies amid raw materials' price hike

To review the availability of fertilizers during the Kharif season, Union Minister of Chemicals and Fertilizers D. V. Sadananda Gowda and Minister of State Mansukh L. Mandaviya recently held a meeting with leading manufacturers/importers.

The meeting, held on Monday, was also attended by senior officials of the department of fertilizers. The target indigenous production and anticipated import of various fertilizers/raw material as indicated by various compes were discussed in detail, as per a government media release.

With regard to Urea availability in the country, the industry appreciated the efforts of the government in terms of the revival of the various Urea units that will reduce the import dependency in times to come. Secretary (Fertilizers) indicated a comfortable Urea availability across all the states during the ongoing Kharif 2021 season.

To ensure that the P&K fertilizers are made available to the farmers timely and adequately during the Kharif 2021 season, the preparedness of each company was assessed.

During the meeting, the compes highlighted the various issues like global trends of price increase of raw material and finished fertilizers and informed about their strategy in getting the best deal for the country.

With regard to the issue of increase in prices of Phosphatic fertilizers by IFFCO vide its notification dated April 7, there was discussion in length. The concerns of the compes with regard to the increase in prices of raw materials globally were understood.

Compes highlighted that in the last three to four months, international prices of raw material and finished products have witnessed a sharp increase due to competing demand from major fertilizer-consuming markets like USA, Brazil and China.

The compes informed that with the imposition of countervailing duty by USA on imports from Morocco and Russia, there is a realignment of the supply chain with the middle east diverting the supplies to the USA.

China's active domestic season and reduced exports impacted supplies to the Indian subcontinent with global players seeking higher DAP prices prevailing in Europe and USA markets. The compes requested for government's intervention through the diplomatic channel to convince the suppliers to keep the pipeline smooth with regard to supplies and prices at reasonable rates.

The Minister and MoS acknowledged the ongoing efforts of the industry in ensuring timely availability and supply of various fertilizers. The industry leaders were assured that government will take all necessary steps which will support their efforts in the present scenario.

The necessary interventions through the diplomatic channels will be made so as to get the timely supply of raw material, finished fertilizer from international sources. The ministers also assured that all the states/UTs will be sensitised through the topmost levels so that there is no black marketing, hoarding, tagging of fertilizers.

( With inputs from ANI )