Govt measures to ensure availability of fertilizer during Kharif 2021 season
To review the availability of fertilizers during the Kharif 2021 season, the Union Minister (C&F) Sh. D. V. Sadananda Gowda and theMinister of State (C&F) ShriMansukh L. Mandaviya held a meeting with leading manufacturers/importers at 04.00 PM on 12.04.2021. The meeting was also attended by senior officials of Department of Fertilizers. The target indigenous production and anticipated import of various fertilizers/raw material as indicated by various companies was discussed in details.
With regard to Urea availability in the country, the industry appreciated the efforts of the Government in terms of the revival of the various Urea units that will reduce the import dependency in times to come. Secretary (Fertilizers) indicated a comfortable Urea availability across all the states during the ongoing Kharif 2021 season.
To ensure that the P&K fertilizers are made available to the farmers timely and adequately during the Kharif 2021 season, the preparedness of each company was assessed. The companies highlighted the various issues like global trends of price increase of raw material and finished fertilizers and informed about their strategy in getting the best deal for the country. DG, Fertilizer Association of India (FAI) Sh. Satish Chandra presented before the Honble Ministers the comfortable level of stocks of various fertilizers and raw materials to address the field demand for the first three months of Kharif 2021 season.
With regard to the issue of increase in prices of Phosphatic fertilizers by IFFCO vide its notification dated 07.04.2021, there was discussion in length. The concerns of the companies with regard to the increase in prices of raw material globally were understood. Companies highlighted that in last three to four months, International prices of raw material and finished products have witnessed a sharp increase due to competing demand from major fertilizer consuming markets like USA, Brazil and China.
The companies informed that with the imposition of countervailing duty by USA on imports from Morocco and Russia, there is a realignment of the supply chain with the middle east diverting the supplies to the USA. Chinas active domestic season and reduced exports impacted supplies to Indian subcontinent with global players seeking higher DAP prices prevailing in Europe and USA markets. The companies requested for Governments intervention through the diplomatic channel to convince the suppliers to keep the pipeline smooth with regard to supplies and prices at reasonable rates.
Secretary (Fertilizers) presented the requirement scenario of various fertilizers for the various states and the companies were advised to ensure timely supplies of various fertilizers. The companies were forthcoming and assured that during the days to come, the fertilizers will be made available to the farmers timely, adequately and at affordable prices. All the major companies clarified that the existing inventory lying at retail points, wholesale points, rake points, warehouses etc. will be made available at the older rates. The MOS (C&F) advised all the companies that before changing any price of P&K fertilizers, the Department of Fertilizers shall be consulted upon.
Further, the companies along with the FAI assured that they will be negotiating hard with the International suppliers as one team and a united strategy will be adopted to get the best deal in terms of raw material and finished products in case of P&K fertilizers.
The Minister and MOS acknowledged the ongoing efforts of the industry in ensuring timely availability and supply of various fertilizers. The industry leaders were assured that Government will take all necessary steps which will support their efforts in the present scenario. The necessary interventions through the diplomatic channels will be made so as to get the timely supply of raw material, finished fertilizer from the International sources. The Ministers also assured that all the States/UTs will be sensitized through the topmost levels so that there is no black marketing, hoarding, tagging of fertilizers.
The meeting ended on a note that during Kharif 2021 season, the fertilizer availability will remain comfortable and all the required concerted efforts in this regard will be made.