Urea imports decline by 36 per cent to 32.26 lakh tonnes in April-October period

NEW DELHI: Urea imports have decreased by 36 per cent to 32.26 lakh tonnes (LT) in the first seven months of 2014-15 owing to carry-over stocks and a fall in sowing during this kharif season.

Urea imports stood at 50.38 LT in the April-October period of 2013-14, according to official data.

"Urea imports have come down this year so far mainly due to carry-over stocks from last year and farmers sowing crops in lesser area compared to last year," a Fertilizer Ministry official said.

Sowing of kharif crop begins with the onset of southwest monsoon in June and farmers normally start preparing fields before the arrival of rains.

Urea is imported by three STEs (state trading enterprises) -- Indian Potash Ltd (IPL), MMTC and STC on behalf of the government to meet domestic shortfall. The country produces about 22 million tonnes (MT) against an annual domestic demand of 30 MT.

Besides, these three STEs, the government imports urea through OMIFCO, which is a joint venture project of IFFCO and Kribhco, with an offtake agreement.

India's urea imports have decreased 12 per cent to 7.08 MT in 2013-14, due to carry-over stocks from the previous year. The country had imported 8.04 MT of urea in the entire 2012--13 fiscal.

Urea is provided to farmers at a fixed subsidised maximum retail price (MRP) of Rs 5,360 per tonne. The difference between the cost of production and MRP of urea is provided as subsidy to manufacturers.