Indian Fertilizer Industry – Problems And Prospects

Fertilizers play a vital role in self sufficiency in food production. The industry however is fraught with problems, related to feedstocks and administered pricing which has led to stagnation in indigenous capacity during the last decade, leading to huge volumes of imports of fertilizers. Dependence on naphtha and unremunerative price concession schemes (subsidies) are adversely affecting the economics of operations. The recent gas finds in the KG basin and plans for a natural gas grid as well as refinery-integrated fertilizer plants could change the scenario.