NEW DELHI, June 26: The gap in demand and supply of urea – a key fertiliser – is projected to rise to 11 million tonnes (MT) by the 2016-17 fiscal, industry body Fertiliser Association of India (FAI) has said.
The country produces around 22 MT of the important nitrogenous fertiliser, while consumption is around 28 MT. The shortfall of 6 MT covered through imports.
“There is an urgent need for construction of new urea projects to fill the projected consumption and production gap of 11 million tonnes by the year 2016-17,” FAI Director General Satish Chander told.
India was self-sufficient in urea till 2001-02 but with rising consumption and lack of major investments, production could not catch up with the increasing demand, he added.
Emphasising upon the need for more investments in the urea sector, Chander said that in view of high capital costs, there has to be a conducive policy for investments in new projects.
“The government should come out with the new investment policy for urea. The industry is ready,” he added.
According to a report of the Working Group set up by the Planning Commission for the 12th Five Year Plan (2012-17), India needs to invest Rs 40,000 crore in the fertiliser sector to increase the country’s urea production capacity to 33.7 million tonnes (MT) by the end of the 12th Five Year Plan.
Investments in the sector by end of 2010-11 stood at Rs 27,247 crore, the report said. (PTI)
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