Nov. 13, 2019
The fertilizer production is predicted to grow in the country as the Rabi season approaches, and with the current pricing of Sulphur, Ammonia, and Phosphoric Acid, the prices are set to tumble between 6-17%. These plunging will only be observed for the NPK based fertilizer, though, as the prices of state-controlled Urea have stayed fairly steady at Rs. 265/45 kg bag.
The current global prices of major fertilizers are about 20% less than that of the Kharif season in 2019, the major reason being of the incessant rains that have destroyed the Kharif crops in the majority of the country which has lead to subdued demand. The supply stream staying stable has thus ensured a drop in the prices of the raw material falling globally and that of the finished product, also seeing the lights of red.
The chemical and fertilizer industry of India has been the only one growing in these crunch economic times, with it being the lone sector they grew for the month of September, as the industry prepares to deliver to the crores of farmers in the subcontinent for their needs during the season. The WTO's Agreement on Agriculture has prevented India from issuing excessive subsidies on agriculture and agricultural produce, but the Amber box allocation has saved the Indian farmers from suffering the same plight as some of the nations in the developing category whose domestic markets have been poached and ruined by westerner powers.
The growth mechanism in the industry is not just to be compliant for the needs of the farmers but a lot of pro-active work has been put to make sure that the right soil gets the right amount of fertilizer so as to maintain the health of the soil and help farmers extract maximum revenue per hectare at the same time saving the health of their fields for further cropping cycles. The soil health card initiative taken by the government is one of the biggest in terms of coverage in the world as it covers about 30 crore farmers of India.