India has sufficient fertilizer inventory to satisfy rabi requirement: Centre

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India has enough fertilizer stock to meet rabi requirement: Centre

2022-11-27 00:53:07

Union Fertilizers Secretary Arun Singhal during an Interview with The Hindu in New Delhi on November 24, 2022..

Union Fertilizers Secretary Arun Singhal throughout an Interview with The Hindu in New Delhi on November 24, 2022..
| Photograph Credit score: R. V. Moorthy

Because the sowing for rabi season is at its peak, the demand for fertilizers may also improve. The nation wants 650 lakh metric tonnes (LMT) of fertilizers yearly, virtually two LMT per day. Nonetheless, in the course of the peak of the season, it should go as much as 4 LMT per day. Union Fertilizers Secretary Arun Singhal makes use of the Built-in Fertilizer Administration System, an in-house software program to watch the provision and provide of fertilizers. Speaking to The Hindu amid experiences of a provide crunch and rise in costs of each the fertilizers and their elements globally as a result of Ukraine-Russia battle, Mr. Singhal stated the nation has ample shares to satisfy the rabi requirement. Excerpts from the interview:

Q /
Has the Ukraine-Russia battle impacted the provision of fertilizers in India?

A /
Our commerce, quite the opposite, with Russia has gone up. It has gone up many instances as a result of fertilizer is just not a sanctioned merchandise. Fertilizer commerce between corporations is on. We are able to make funds by way of telegraphic switch mode. After they submit proof of dispatch, switch is constructed from right here. That’s working properly and our imports from Russia has gone up. [Besides]…we go to many international locations for our provides. We aren’t depending on one nation. The fundamental factor we do to protect towards such conditions is to broad-base our sources or provides. As of now, we import potassic fertilizers fully as we shouldn’t have potash within the nation. So Muriate of Potash (MOP) is fully imported. We manufacture about 40 LMT of Di-ammonium Phosphate (DAP )and import 80 LMT. There’s a heavy import dependence there. For nitrogen (N), phosphorus (P) and potassium (Ok), we manufacture round 100 LMT and import round 10-15 LMT. So, in NPK, we manufacture all the necessities right here within the nation. Equally, Single Tremendous Phosphate (SSP) we manufacture fully. As an example, we require about 40 LMT of MOP yearly. We’ve a long-term settlement with Canada for 15 LMT for 3 years. We’ve MoUs with Israel for seven LMT, with Jordan for two.75 LMT and with Germany for 1.05 LMT. Lately, we signed an settlement with Russia for 10 LMT. So, towards the requirement of 40 LMT, we’ve got long-term MoUs for about 35 LMT. After all, we buy as it’s accessible wherever else on the earth. Lately, Belarus was not capable of provide to us due to the battle. However we absorbed that shock as a result of there have been such MoUs. So once you broad-base your sources, you’re considerably insulated from such shocks.

Q /
The rabi season is at its peak. What’s your assurance to farmers?

A /
There is no such thing as a scarcity of any fertilizers within the nation at present. For instance, for urea, the entire requirement of the season is 180 LMT. We began the season with a gap inventory 55 LMT. We’ve already offered 50 LMT of the demand. So 130 LMT stays to be offered within the subsequent 4 months. As of now, we’ve got a inventory of 58 LMT. We produce 23 LMT each month. So there isn’t a scarcity. For DAP, the requirement is 55 LMT for the complete season. We already offered virtually 29 LMT. Greater than half of the demand has already been met. We’ve a inventory of 17.72 LMT. We’re producing and importing DAP, which fits on all through the season. The place is snug. By the top of December, we are going to meet the demand for DAP for rabi. Then, from January onwards, we are going to begin stocking DAP for kharif. We wish to go together with snug opening shares of at the least 30% requirement of all of the fertilizers for kharif, the following crop season. On NPK, the demand was 57 LMT. We’ve offered 19 LMT up to now. We’ve shares of 29.78 LMT now. We carry on including each month. Equally, MOP requirement was 14.34 LMT. We’ve offered 3.58 LMT up to now. Present inventory is 7.60 LMT. So, for all of the 4 main fertilizers, there was no scarcity in any respect. Through the peak of the season, hundreds of vans and rail rakes can be shifting daily. Typically, there could possibly be some bottlenecks and hiccups, which may create a quick provide scarcity. However total, there isn’t a scarcity. The costs are additionally secure. It’s for the State governments to take motion on problems with black advertising. Our job is to ship fertilizers to shares.

Q /
Is the Centre growing public funding in fertilizers sector? Is it due to the worldwide state of affairs?

A /
Fertilizers are a non-strategic sector. So, all of the PSUs within the fertilizer sector should be disinvested. This can be a Cupboard resolution and it has nothing to do with revenue or loss. There is no such thing as a rethink in regards to the coverage. Each PSU within the fertilizer sector needs to be disinvested or closed. So far as the affect of Russia-Ukraine disaster is anxious, no fertilizer producer can survive with out authorities subsidy. There is no such thing as a purpose to fabricate within the authorities sector. The choice to revive 5 items has nothing to do with Russia Ukraine battle. The brand new items we arrange are similar to the perfect on the earth. These new vegetation may also be disinvested finally.

Q /
So, will the worldwide state of affairs improve the fertilizer subsidy?

A /
The fertilizer subsidy may go as much as ₹2.5 lakh crore. The worldwide state of affairs is the explanation. The worth of gasoline, an integral part of urea, has gone up. We are going to request the Finance Ministry to extend the subsidy this yr.

Q /
How do you see the demand for direct switch of fertilizer subsidy to farmers?

A /
A small farmer is just not a cash-rich particular person. For him to come back with the total price of fertilizers and get it reimbursed in a while is a painful factor. For one hectare, the non-subsidised price could be round ₹20,000. Even when we switch the subsidy inside a day, it’s tough for the farmer.

Q /
What was the logic behind One Nation One Fertilizer?

A /
It’s to avoid wasting on logistics. For instance, urea is a molecule. One can not produce a molecule of a distinct sort. If something is combined with urea, farmers will rapidly determine it. So, one can not say that one firm produces higher urea than one other firm. The product is standardised. Each firm has a compulsory lab to verify the standard of the product. Fascination over sure model is in-built such a fashion that the product needs to be despatched 2,000 kilometres away. If each manufacturing facility caters to the world round it, it should minimise the price of transportation and use of railway rakes. All fertilizers are basically the identical. So, there isn’t a have to have completely different manufacturers to confuse the farmer. So, we named the fertilizer Bharat and we are going to save ₹500 crore yearly.

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