Indian government says there is no shortage of fertilizers in country

LONDON (ICIS)–The Indian fertilizer ministry has said there is no shortage of fertilizers – particularly urea – in the country, according to a press release issued late on Monday.

The Ministry of Chemicals and Fertilizers statement comes after media reports that Indian farmers have been severely affected by a shortage of urea during the Rabi or winter season of November to April.

The ministry adds that it made more urea available to farmers than was required so far this year. In January 2015, 3.2m tonnes of urea was made available – 10% more than the monthly requirement of 2.9m tonnes, the release stated.

In February 2015, against a requirement of 1.7m tonnes of urea, a plan to supply 3m tonnes is under way, of which 1.5m tonnes has already been made available as of 15 February, the ministry said.

The alleged scarcity of urea has largely been attributed to delayed imports in the first six months of the fiscal year – April to September 2014 – given the prospect of a drought and as some naphtha-based urea plants were shut down due to higher costs, sources said. Also, urea demand was higher towards the end of 2014, as farmers delayed sowing crops.

Domestic urea sales hit 3.6m tonnes in the peak consumption month of December 2014.

Indian imports of urea have been at a record level this fiscal year (April 2014 – March 2015). Some 7.3m tonnes of urea was imported from April 2014 to January 2015, while another 1.2m tonnes will be delivered in February and March 2015, taking Indian imports this fiscal year to a record 8.5m tonnes, the ministry said.

In the previous fiscal year Indian urea imports were at 7.1m tonnes, down by 20% from this year’s levels.

The ministry also said it floated a purchase tender through the Metals and Minerals Trading Corporation of India (MMTC) in January, under which it will procure another 1.05m tonnes of urea to be delivered in April, to ensure adequate availability of urea during the Kharif season of July to October this year.

India imports urea primarily from China through three companies: the State Trading Corporation of India, MMTC and Indian Potash Limited. The country also produces about 22m tonnes of urea, all of which is consumed domestically.