Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.

Tough times for fertilizer industry


  1. In absence of a well-planned Govt. policy, top fertilizer manufacturers like Tata and Birla are mulling upon exiting the industry.
  2. Major reasons are excess focus and usage of urea, delayed subsidy payments, non-availability of domestic natural gas and inconsistent Govt. policy.
  3. Urea is highly subsidized which makes the prices of decontrolled NPK fertilizers 3-4 times higher, thereby, decreasing their consumption.
  4. Though the Govt. allowed gas pooling recently, but the entire benefit goes to urea industry and not to NPK manufacturers.
  5. Without a developed fertilizer industry, schemes like Soil Health Cards, Second Green Revolution etc. will remain only paper schemes.
  6. Subsidy of more than Rs. 30,000 crores is outstanding to manufacturers some of which dates back to 2008.

 

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