The Union Government has assured that there are sufficient stocks of urea and diammonium phosphate (DAP) in India as the Kharif season approaches, despite facing temporary production disruptions due to regional tensions in West Asia. At a recent inter-ministerial press briefing in New Delhi, Aparna S Sharma, Joint Secretary of the Department of Fertilisers, highlighted that urea is being sold at a regulated price of Rs 266 for a 45 kg bag, while DAP is available at Rs 1,350 for a 50 kg bag.

Global Market Price Surge Impacting Domestic Production Costs

Sharma noted a significant increase in global fertiliser prices, attributing these rises to escalating freight and related costs precipitated by the ongoing international situation. Furthermore, Sharma underscored the importance of essential feedstocks such as ammonia, sulfur, and sulfuric acid, whose availability has also been impacted. This disruption has led to an estimated decline in domestic urea production by approximately 30,000 to 35,000 tonnes per day.

Stock Levels and Production Requirements for Kharif Season

According to projections by the Department of Agriculture, the anticipated urea requirement for the upcoming Kharif season is expected to be 390 lakh tonnes. In comparison, actual sales during the last Kharif season totalled 361 lakh tonnes. Sharma stated that current stock levels are satisfactory, with existing reserves standing at 180 lakh metric tonnes, up from 147 lakh tonnes in the previous year. This indicates a healthy stock position going into the season.

Recovery of Gas Supply Contributing to Production

Sharma elaborated on the recovery of gas supply, which had previously been curtailed to 60 percent. The supply is now gradually increasing, having moved to 65 percent and currently reaching 80 percent, which will positively affect domestic urea production capabilities. The official emphasized the importance of maintaining supply chain continuity, mentioning regular communication with major suppliers of both urea and DAP to ensure consistent availability of these crucial fertilisers.

Diversifying Sourcing Channels to Reduce Reliance

As part of efforts to mitigate dependency on imports from the Gulf region, Sharma revealed that steps are being taken to diversify sourcing options. This includes establishing supply channels with various countries such as Russia, Morocco, Australia, Indonesia, Malaysia, Jordan, Canada, Algeria, Egypt, and Togo. The Department of Fertilisers is actively coordinating with Indian diplomatic missions abroad to secure alternative supply sources, indicating a proactive approach to ensure a steady supply of essential fertilisers.

Long or Short, get news the way you like. No ads. No redirections. Download Newspin and Stay Alert, The CSR Journal Mobile app, for fast, crisp, clean updates!

App Store –  https://apps.apple.com/in/app/newspin/id6746449540 

Google Play Store – https://play.google.com/store/apps/details?id=com.inventifweb.newspin&pcampaignid=web_share