NEW DELHI, Dec 28: Looking for a better New Year ahead, fertiliser sector expects the output to rise by over 2 million tonnes in 2016, which can help lessen the dependence on imports and also lower the subsidies by up to Rs 10,000 crore.
In 2015, major initiatives in fertiliser space included mandatory neem-coating of urea and revival of closed plants to make the country self-sufficient in urea production.
However, huge subsidy arrears, which may touch Rs 45,000 crore by March, 2016, remain a big concern.
The government this year also announced the new urea policy and gas pooling to make the sector energy-efficient and smoothen the process of gas availability and supply.
Banking on these initiatives, Fertiliser Minister Ananth Kumar is confident of making India a net exporter of urea in the coming years.
“During the year, we decided for mandatory neem-coating of the total 100 per cent urea produced in the country or imported. And we achieved it in record time of 166 days. It is a silent urea revolution which has created win-win situation for the farmers and for the health of soil,” Fertiliser Minister Ananth Kumar told PTI.
He further said that the government has introduced the new urea policy this year, which incentivises the energy efficiency in the sector and would help boost urea production.
“The government has already started the process for revival of the closed urea plants and to establish new urea plants which will transform India from net importer of urea to its net exporter in coming years,” the minister said.
Fertiliser Secretary Anuj Kumar Bishnoi said the country’s “urea production could reach record 25 million tonnes in the next financial year.
“At the same time, imports could also come down by 1.5 to 2 million tonnes with the help of policy initiatives like neem coating of urea and new urea policy,” he added.
With these initiatives, Bishnoi said the fertiliser subsidy bill can come down by Rs 5,000-10,000 crore.
India produces about 22 million tonnes of urea annually but has to import 7-8 million tonnes a year to meet the domestic demand.
The government has fixed the maximum retail price (MRP) of urea at Rs 5,360 per tonne and the difference between the cost of production and the MRP is reimbursed to the manufacturers. In case of uera, the subsidy constitutes more than 75 per cent of the cost of production. (PTI)
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