Local demand fuels rise in urea import
Urea requirement for the country this Rabi is estimated at 140 lakh (14 million) tonnes, against an indigenous produce of 106 lakh (10.6 m) and an import of 35 lakh (3.5 m) tonne.
By TNN |
NEW DELHI: Urea requirement for the country this Rabi is estimated at 140 lakh (14 million) tonnes, against an indigenous produce of 106 lakh (10.6 m) and an import of 35 lakh (3.5 m) tonne. Urea imports into the country to meet heavy domestic demand have gone up steadily over the years. Imports were to the tune of 33.5 lakh-odd tonne in kharif 2007-08, bringing up the total imports this year to a whopping 68.8 lakh (6.6 m ) tonne of urea for the entire year. In comparison, imports in all of 2006-07 were to the tune of 47.18 lakh (4.7 m) tonne.
Acknowledging that the country’s urea imports would go up by 1.5 lakh tonne this year compared to the 2007-08 kharif season, minister of state for chemicals & fertilisers B K. Handique told the Lok Sabha here on Thursday in a written reply: “Urea is imported as and when there is a gap between the requirement and the indigenous production”.
Significantly, urea imports into the country to meet domestic demand for all of ‘05-06 was only 20. 57 lakh (2.05m) tonnes. But that was a quantum jump from the 6.41 lakh tonne imported in ‘04-05. The country, in comparison, only imported 2.10 lakh tonne of urea in ‘01-02 but for the next two years, India remained self sufficient and did not import any of the commodity.
Indigenous demand of urea has been growing in a marked manner since ‘01-02. From only 213 lakh tonne in ‘01-02, demand within the coutnry for urea went up to 234. 25 lakh tonne in ‘05-06, to 249.46 lakh tonne in ‘06-07 and a whopping 271 lakh tonne-odd this year, inclusive of both Rabi and Kharif needs.
Indigenous production in these years, however, has been flagging due to a plethora of reasons including higher intermediary and raw material costs and tighter feedstock supply. In ‘05-06, domestic urea production stood at 202.97 lakh tonne but it went up to 203.07 lakh a tonne the next year. In 2007-08, the total domestic production of urea has gone up only marginally to 204.88 lakh tonne against the estimated dmeand of 271 lakh tonne-odd.
Meanwhile, the demand for di-ammonium phosphate (DAP), the second-most used fertiliser, stood at 4.91 million tonnes, while muriate of potash (MOP) demand was projected at 1.96 million tonnes. The indigenous production of urea and DAP during the season was estimated to be about 10.69 million tonnes and 2.61 million tonnes, respectively.
The requirement of MOP is totally met from imports as it is not produced in India.
Acknowledging that the country’s urea imports would go up by 1.5 lakh tonne this year compared to the 2007-08 kharif season, minister of state for chemicals & fertilisers B K. Handique told the Lok Sabha here on Thursday in a written reply: “Urea is imported as and when there is a gap between the requirement and the indigenous production”.
Significantly, urea imports into the country to meet domestic demand for all of ‘05-06 was only 20. 57 lakh (2.05m) tonnes. But that was a quantum jump from the 6.41 lakh tonne imported in ‘04-05. The country, in comparison, only imported 2.10 lakh tonne of urea in ‘01-02 but for the next two years, India remained self sufficient and did not import any of the commodity.
Indigenous demand of urea has been growing in a marked manner since ‘01-02. From only 213 lakh tonne in ‘01-02, demand within the coutnry for urea went up to 234. 25 lakh tonne in ‘05-06, to 249.46 lakh tonne in ‘06-07 and a whopping 271 lakh tonne-odd this year, inclusive of both Rabi and Kharif needs.
Indigenous production in these years, however, has been flagging due to a plethora of reasons including higher intermediary and raw material costs and tighter feedstock supply. In ‘05-06, domestic urea production stood at 202.97 lakh tonne but it went up to 203.07 lakh a tonne the next year. In 2007-08, the total domestic production of urea has gone up only marginally to 204.88 lakh tonne against the estimated dmeand of 271 lakh tonne-odd.
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Meanwhile, the demand for di-ammonium phosphate (DAP), the second-most used fertiliser, stood at 4.91 million tonnes, while muriate of potash (MOP) demand was projected at 1.96 million tonnes. The indigenous production of urea and DAP during the season was estimated to be about 10.69 million tonnes and 2.61 million tonnes, respectively.
The requirement of MOP is totally met from imports as it is not produced in India.
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