India's Fertilizer Demand Rising

NEW DELHI - Dec 15/06 - SNS -- Demand for fertilizer by India's farmers has risen steadily the past two years, reports the country's Minister of State in the Ministry of Chemicals & Fertilzers, Shri B.K. Handique.

The production of urea in the country is around 20 million metric tons (MT) as against the assessed demand of around 24 million MT during the current year. Import of urea is made on Government account to bridge the gap between assessed demand and estimated production.

Fertilizers other than Urea are imported under Open General Licence (OGL). The production of DAP is estimated at 5 million MT during the year 2006-07 whereas the assessed demand is 8.025 million MT. The balance requirement is met through imports. Government is also maintaining Buffer Stock of DAP at various locations in the country through its Buffer stocking agency to meet the sudden spurt in demand.

The country is fully dependent on imports to meet its requirement of potash as there are no exploitable reserves of potash in the country. Urea imports totalled 1.214 million MT under Long Term Agreement from Sur and Oman during the current financial year till October. A total of 3.164 million MT (approximately) of urea has been contracted for imports during 2006-07 from other sources of which 1.878 million MT have been imported till October. 2.509 million MT of DAP and 2.168 million MT of MOP have also been imported till end of October this year.