India Reduces the Urea Import

May 10th, 2017

India is re-entering the world urea market and becomes a significant player in this business sector. This is due to the government’s decision to reduce the import of urea over the next 5 years. Moreover, on achieving the year 2022, Indian producers will completely refuse foreign fertiliser supplies.

India has actively been developing domestic production of nitrogen fertilisers for the last two years. The production increase is primarily the construction of new plants, modernization of the old facilities and equipment. The officials of the Ministry of Indian chemical industry have announced the restart of production sites, restoration of the old and expansion of already existing plants. The main focus of the government is given to the development of unprofitable enterprises. Currently, the specialists are developing recovery strategies for the Fertilisers & Chemicals Travancore Ltd. and Madras Fertilizers Ltd. But still there are tens of national plants that strongly need business strategy development and financial support from the state. In the near term, the government intends to run 5 idle factories. NTPC Ltd Oil Corp. and Coal India Ltd are the state companies that have invested 180 billion Indian rupees in the rehabilitation of three national carbamide enterprises.

However, the government makes special emphasis on the expansion and development of already operating companies. Brahmaputra Valley Fertilizer Corp, the largest nitrogen company in the country, increases the production of urea by half due to the start-up of new units which is 850 tonnes of urea. Notably, the modernization of the new units will allow the producers not to increase the gas flow rate.

The major steps of the state towards the development of the fertilisers industry will enhance the opportunities of the Indian producers on the global market of fertilisers. Two years ago, India bought 8.5 million tonnes of urea while last year the import of fertilisers amounted to 5.5 million tonnes. The ongoing projects make it possible for India to stop urea import within a short period.