c
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   :

  
 
 Fertilizers have been key input for realizing yield potential of responsive, high-
yielding crop varieties. The NPK consumption increased from 1.1 million tonnes in 1966-67, the year preceding
Green Revolution to 23 million tonnes in 2007-08.

The fertilizer industry in India shows an upward rising trend that would challenge the broader market in future
years. With an outstanding investment of Rs. 20, 677 Crore in the September, 2007 quarter, the sector will witness
burgeoning production that will reach new heights in the coming years. Most of the companies are expecting an
approval for their huge capital expenditure plans from the Department of Fertilizers in India. The flourishing
industry will fill in the gap between demand and supply of fertilizers in India.

The nitrogenous fertilizer segment is regulated through price controls. The government fixes two prices: the price
at which the manufacturers should sell to the farmers and the retention price, which the manufacturer should
have received from the farmer. The government reimburses the difference in the selling price and the retention
price in the form of a subsidy.

Sl. No Sector Capacity (LMT) Percentage Share

N P N P
1 Private Sector 53.94 35.13 44.73 62.08
2 Public Sector 34.98 4.33 29.0 7.65
3 Cooperative Sector 31.69 17.13 26.27 30.27
Total 120.61 56.59 100.0 100.0


    India at present the second largest producer of fertilizer-nitrogen in the world,
and third position for phosphate fertilizers. And potash is totally imported.

As per Fertilizer Association of India import of fertilizer products 1980-2009.

Year Ammonium Urea CAN DAP TSP MOP SOP N P K Total

Sulphate (46% (26%) (18- (0- (60% (50%
(20.6% N) N) 46-0) 46-0) K2O) K2O)
1980 20.0 2848.0 73.5 982.8 -- 1309.8 21.8 1510.2 452.1 796.8 2759.1

1990 -- --- --- 2815 -- 2082 25 523 1311.3 1278.1 3112.5

2000 -- -- -- 861 -- 2646 12.8 163.6 436.7 1594 2194.3

2009 23 5667 2.5 6191.7 173.1 5671.7 27.3 3756 3066.6 3416.7 10239.3
˜
: The government has established nine public sector undertakings in the Indian
fertilizer market and one cooperative society, known as the Krishak Bharati Cooperative Limited
(KRIBHCO) that functions under the supervision of the Department of Fertilizers in India. There
are 63 large units dedicated to the production of fertilizers. Among these, 9 units produce
ammonium sulphate while 38 units produce urea. There are 79 small and medium scale units
producing single superphosphate.





    
   

!

R| Fertilizer Corporation of India Limited (FCIL)

R| Hindustan Fertilizer Corporation Limited (HFC)
R| Pyrites, Phosphates & Chemicals Limited
R| Rashtriya Chemicals and Fertilizers Limited (RCF)
R| National Fertilizers Limited (NFL)
R| Projects &Development India Limited (PDIL)
R| The Fertilizers and Chemicals Travancore Limited (FACT)
R| Madras Fertilizers Limited (MFL)
R| IFFCO
R| FCI Aravali Gypsum & Minerals India Limited, Jodhpur

 " 
    

   

!

R| Khaitan Chemicals and Fertilizers Limited,

R| Managalore Chemicals,
R| Nagarjuna Fertilizers,
R| Aauri Chambal,
R| BEC Fertilizers 
R| Gujarat State Fertilizers &Chemicals Limited.

 
   The fertilizer plant was established in 1906 in Tamil Nadu. The growth of the fertilizer
industry began in 1951 with plant establishment by Fertilizer Corporation of India. The constant demand
of fertilizer resulted in Green Revolution and lead to spreading of industry in industry in several parts of
India. Today, Tamil Nadu, Uttar Pradesh, Gujarat, Kerala and Punjab produce over half of the total
produce of fertilizer required in India. Apart from them, Andhra Pradesh, Rajasthan, Orissa, Bihar,
Assam, Maharashtra, Rajasthan, West Bengal, Madhya Pradesh, Delhi, Goa and Karnataka are also
important producers of fertilizers. The ease of obtainability of natural gas resulted in the wide spread of
the fertilizer industry. India produces nitrogenous nearly 11 million tones, phosphate 4 million tones and
potash fertilizers to 1.7 million tones. The country imports potassium from abroad.

#

    " The recent decision by the central government on fertilizer
policy are historical. These include: (i) nutrient