During the Kharif season of 2021, the government has taken several major steps to ensure availability of fertilizer.
During Rabi (winter crop) 2020-21, its availability across the country has been satisfactory.
To review the availability of fertilizers during the Kharif season of 2021, Union Minister (Chemicals and Fertilizers) DV Sadanand Gowda and Minister of State (Chemicals and Fertilizers) Mansukh L Mandavia on 12.04.2021 at 04.00 pm for major manufacturers / Had a meeting with the importers. Senior officers of the Department of Fertilizers also took part in the meeting. Targeted indigenous production and anticipated import of various fertilizers / raw materials mentioned by various companies were discussed in detail.
The government gave important information about urea
Regarding the availability of urea in the country, the industry appreciated the efforts of the government for the revival of various urea units which would reduce the dependence on imports in the coming years. Secretary (Fertilizer) indicated adequate availability of urea in all states during the current Kharif 2021 season.
To ensure that phosphatic and potassic fertilizers are provided on time and sufficiently to the farmers during the 2021 kharif season, the preparations of every company were reviewed.
The companies highlighted various issues such as global trends in the price rise of raw materials and finished fertilizers and explained their strategy to get the best deal for the country.
Director General of the Fertilizer Association of India (FAI) Satish Chandra told the Hon’ble Ministers that various fertilizers and raw material reserves are present at sufficient levels to meet the demand for the first three months of the 2021 kharif season.
Through the notification of IFFCO dated 07.04.2021, the issue of increase in the prices of phosphatic fertilizers was discussed in detail. Concerns of companies related to the rise in raw material prices were understood at the global level.
Companies said that in the last three to four months, international prices of raw materials and finished products have risen sharply due to competition from demand from fertilizer consumption major markets such as America, Brazil and China.
The companies reported that there was a change in the supply chain with the US imposing countervailing duty on imports from Morocco and Russia, and with West Asia turning supplies to the US.
China’s active domestic weather and reduced exports have affected supply in the Indian subcontinent, and global companies are demanding DAP prices similar to the higher DAP (on-the-spot supply) prices found in the European and American markets.
Companies requested the government to intervene through diplomatic channels to convince suppliers to keep the process smooth with regard to supply and prices at reasonable rates.
Secretary (Fertilizer) presented the scenario of the need of different fertilizers for different states and companies were advised to ensure timely supply of various fertilizers. The companies directly assured that in the coming days, farmers will be provided fertilizers on time, adequately and at affordable prices.
All the major companies made it clear that the existing stores available at retail centers, wholesale centers, store centers, warehouses etc. will be made available at the old rates.
The Minister of State for Chemicals and Fertilizers advised all companies to consult the Department of Fertilizers before changing any prices of phosphatic and potassic fertilizers.
In addition, the companies and FAI assured that they would negotiate a price with international suppliers as a team and to get the best deal in terms of raw materials and finished products with respect to phosphatic and potassic fertilizers. A joint strategy will be adopted.
The Minister and the Minister of State appreciated the efforts being made by the industry to ensure timely availability and supply of various fertilizers. Industry leaders were assured that the government would take all necessary steps to help their efforts in the present scenario.
Due to timely supply of raw materials, finished fertilizers from international sources, necessary intervention will be done through diplomatic channels.
The Ministers also assured that all the States / UTs will be sensitized through the highest levels so that there is no black marketing, hoarding, tagging of fertilizers.
The meeting ended on the assumption that during the Kharif season of 2021, adequate availability of fertilizer will be maintained and all necessary efforts will be made in this regard.
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