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  3. Fertilizer demand likely to surge by 4% in FY13

Fertilizer demand likely to surge by 4% in FY13

10 May 2012 Evaluate

The demand for fertilisers is likely to increase and reach at 61.27 million tonne in 2012-13, higher by 4% over last year, Minister of State for Chemicals and Fertilisers, Srikant Jena said. The retail prices of fertilisers, which have stabilized since Q3 of 2011-12 fiscal, are likely to remain steady in the ongoing fiscal (2012-13).

This year, urea demand is likely to be 32 million tonne, di-ammonium phosphate (DAP) is at 13.24 million tonne, potash at 4.69 million tonne and complex nutrients at 11.25 million tonne. In the previous year, urea demand stood at 30.51 million tonne, DAP was at 12.61 million tonne, potash at 4.82 million tonne and complexes at 10.73 million tonne.

However, country's production of urea declined below the set target of 18.93 lakh metric tonne (MT) in March, as per the data released by the government. In March 2012, the estimated urea production stood at 17.28 lakh MT. However, production of Diammonium phosphate (DAP) was 0.07 lakh MT higher to 3.10 lakh MT as against the target of 3.03 lakh MT.

India's domestic fertilisers’ production stood at 37.12 million tonnes in 2011-12 financial year and the country imported 22.29 million tonne of nutrients. The indigenous fertiliser production is almost at the equal level from 2009-10 to 2011-12. However, there is uninterrupted rise of imports of fertilisers mainly on the back of the higher demand projected by the states.

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