monthly j fertilizer u update n

Monthly FERTILIZERUpdate

JUN21

Port Anlaysis

Fertilizers Traffic At Indian Ports (Qty In Million Tonnes)

Fertilizers traffic at Indian Ports- March 2021 (Qty in Million Tonnes)

Major Country-wise Fertilizers Imports March 2021 (Qty in Million Tonnes)

MAJOR FERTILIZER IMPORTERS March 2021 (Qty in MILLION TONNES)

Market Overview And Trends

Highlights

Contents

Disclaimer: The information contained in this market update is drawn from wide range of newspapers, business and trade magazines,

government, company and industry association websites. While all possible care is taken to verify the correctness and authenticity of

information contained in this compilation, no claim to independent authorship of articles is implied or intended. Readers are expected

to make their own independent evaluation and verification of information for their use. While all information contained in this report

are believed to be correct, the editors of this compilation or J. M. Baxi & Co. do not guarantee the quotes or other data and the same is

provided only in good faith.

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3Jun 2021 | J. M. Baxi & Co. FERTILIZER Update

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J. M. Baxi & Co. FERTILIZER Update | Jun 20214

Fertilizers traffic at Indian Ports (Qty in Metric Tonnes)

PORT NAME APRIL - 21 APRIL - 20 VARIANCE Y - O - Y

BEDI 54343 0 54343

CHENNAI 36000 0 36000

DHAMRA 5500 0 5500

GANGAVARAM 52500 0 52500

HALDIA 17600 0 17600

HAZIRA 77960 0 77960

KAKINADA 53477 0 53477

KANDLA 202214 0 202214

KOLKATA 30000 0 30000

MANGALORE 63871 0 63870.58

MUMBAI 522 0 522

MUNDRA 95000 58920 36080

PARADIP 299392 56780 242612

TUNA 27028 0 27028

TUTICORIN 130469 0 130469

VISAKHAPATNAM 266661 0 266661

Grand Total 1412537 115700 1296837

MAGDALLA 0.044 0.044 0.000

MANGALORE 0.791 0.442 0.348

MORMUGAO 0.129 0.052 0.077

MUMBAI 0.431 0.174 0.257

MUNDRA 4.507 3.749 0.758

PARADIP 4.780 4.633 0.147

PIPAVAV 1.746 1.349 0.397

SANDHEADS 0.049 0.000 0.049

TUNA 0.788 0.633 0.155

TUTICORIN 1.219 0.868 0.351

VISAKHAPATNAM 3.097 3.143 -0.046

Grand Total 32.265 26.960 5.305

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Fertilizers traffic at Indian Ports May - 2021 (Qty in Metric Tonnes)

Port Cargo QTY IN MT

BEDISULPHUR 55000

UREA 47250

CHENNAI ROCK PHOSPHATE 14302

COCHINROCK PHOSPHATE 69850

SULPHUR 27500

DAHEJ ROCK PHOSPHATE 32999

DHAMRA AMMONIUM PHOSPHATE 71500

DHARAMTAR ROCK PHOSPHATE 36750

HALDIA

MURIATE OF POTASH 16500

ROCK PHOSPHATE 19300

SULPHUR 10608

HAZIRAROCK PHOSPHATE 196150

UREA 48000

JAIGAD UREA 48300

KAKINADA UREA 80350

KANDLA

DI AMMONIUM PHOSPHATE 58040


UREA 67560

KARAIKALPOLYSULPHATE 7854

UREA 58000

KRISHNAPATNAM UREA 52500

MANGALORE MURIATE OF POTASH 26000

MORMUGAO UREA 11000

MUMBAI

AMMONIUM SULPHATE 82000



MUNDRA



NITROGEN PHOSPHORUS POTASH 58900

UREA 98459

PARADIPROCK PHOSPHATE 162891

SULPHUR 46355


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COUNTRIES CARGO MAY - 2021

ALGERIA ROCK PHOSPHATE 70750

BANGLADESH POLYSULPHATE 7854

CHINADI AMMONIUM PHOSPHATE 118235

UREA 474859

EGYPT AMMONIUM NITRATE 7207

JORDANMURIATE OF POTASH 60000


LITHUANIA MURIATE OF POTASH 42500

MOROCCO ROCK PHOSPHATE 207635

OMAN SULPHUR 25108

QATARSULPHUR 73855

UREA 15000

RUSSIAAMMONIUM NITRATE 32299

NITROGEN PHOSPHORUS POTASH 58900

SAUDI ARABIA DI AMMONIUM PHOSPHATE 127802

SOUTH AFRICA AMMONIUM PHOSPHATE 71500

Major Country-wise Fertilizers Imports (Qty in Metric Tonnes) - May 2021


PIPAVAVDI AMMONIUM PHOSPHATE 45500

UREA 107099

TUNADI AMMONIUM PHOSPHATE 27508

UREA 49184

TUTICORIN ROCK PHOSPHATE 51000

VISAKHAPATNAM

AMMONIUM NITRATE 50933


MOLTEN SULPHUR 7000


SULPHUR 42500

UREA 52500

Grand Total 2573806

MAJOR FERTILIZER IMPORTERS (Qty in Metric TONNES) - May 2021

IMPORTERS Cargo May 2021

BHILAI ENGG. CORPN. SULPHUR 14500

BLACK DIAMOND AMMONIUM NITRATE 18634

CHAMBAL FERTILISERS AND CHEMICALS LTD. DI AMMONIUM PHOSPHATE 72735

COROMANDAL FERTLIZERS LTD.ROCK PHOSPHATE 24602

UREA 52500

COROMANDEL INTL. LTD.

MOLTEN SULPHUR 7000


UREA 15000

FERTILIZERS AND CHEMICALS TRAVACORE LTD.


SULPHUR 27500

GUJARAT STATE FERTILIZERS CO. LTD. UREA 47250

HINDALCO INDUSTRIES LTD. DI AMMONIUM PHOSPHATE 45500

IDL EXPLOSIVES LTD. AMMONIUM NITRATE 7022

INDIAN FARMERS FERTILISER COOP. LTD.


SULPHUR 46355

UREA 328908

INDIAN POTASH LTD.DI AMMONIUM PHOSPHATE 51977


INDORAMA INDIA PVT. LTD.

AMMONIUM PHOSPHATE 71500



SULPHUR 5030


TOGO ROCK PHOSPHATE 42950

TURKEY AMMONIUM NITRATE 11427

U.A.E.


MOLTEN SULPHUR 7000

SULPHUR 28000

UKRAINE UREA 54599

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KRISHAK BHARATI CO OP LTD.DI AMMONIUM PHOSPHATE 77802

NITROGEN PHOSPHORUS POT-ASH 58900

MANGALORE CHEMICAL AND FERTILIZERS LTD. MURIATE OF POTASH 26000

MOSAIC INDIA PVT. LTD. DI AMMONIUM PHOSPHATE 50000

NATIONAL FERTILIZERS CO. LTD. UREA 52500

PARADIP PHOSPHATES LTD.MURIATE OF POTASH 21500


SAI SULPHONATE PVT. LTD. SULPHUR 5578

SOLAR INDUSTRIES INDIA LTD. AMMONIUM NITRATE 25277

TAMILNADU NEWSPRINT AND PAPERS LTD. POLYSULPHATE 7854

ZUARI AGRO CHEMICALS LTD. UREA 11000

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11Jan 2020 | J. M. Baxi & Co. FERTILIZER Update

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J. M. Baxi & Co. FERTILIZER Update | Jan 202012 J. M. Baxi & Co. FERTILIZER Update | Jun 202112

HIGHLIGHTS

Cabinet approves sops to Ramagundam urea plant

How govt prevented a farming crisis by increasing DAP fertiliser subsidy as global prices soar

IFFCO unveils world’s first nano liquid urea

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IFFCO, the premier farmers’ cooperative, launched the world’s first nano urea liquid fertiliser, which is cheaper and easier to store and transport, said a company statement. The product, which would be priced at ₹240 / 500 ml bottle, was unveiled launched at IFFCO’s annual general body meeting held.

ProductionIt is said to be capable of replacing conventional urea and each 500 ml bottle contains 40,000 ppm (parts per million) nitrogen, which is equivalent of nitrogen nutrient provided by one bag of conventional urea. The production of liquid urea is expected to commence from next month and commercial rollout will follow after that, the statement said. IFFCO said that its Nano Urea Liquid is already included in Fertiliser Control Order (FCO, 1985) on the basis of multi-location and multi-crop trials undertaken under National Agriculture Research System (NARS) at 20 ICAR research institutes, State Agriculture Universities and KVKs, on 43 crops. To test its efficacy, 11,000

farmer field trials (FFTs) were also undertaken on more than 94 crops across the country recently. These trials demonstrated that there is an 8 per cent increase in yield with this nano liquid fertiliser, the statement said.

Soil health still far from ideal; excessive use of urea fertilisers continues More importantly, the use of this liquid fertiliser will not only boost balanced nutrition of crops, but also reduce the excess use of urea by farmers, which has been causing environmental pollution and harming soil health, making plants more susceptible to disease and insect infestation, said IFFCO. It will also be easy on the pocket of farmers and would effectively increase farmers’ income. A 500 ml bottle of IFFCO Nano Urea Liquid will replace at least one bag of conventional Urea. Hence, it will reduce the input cost to farmer. Due to the small size of Nano Urea Liquid, it can be kept in the pocket and will significantly bring down the cost of logistics and warehousing also, the firm said

Source: The Hindu Business Line

IFFCO unveils world’s first nano liquid urea01

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It is cheaper and easier to store and transport

“ “


All urea plants set up till 2019 will get several incentives

“ “

Source: The Hindu Business Line

The Cabinet Committee on Economic Affairs on Wednesday decided to provide benefits accruing from the New Investment Policy-2012 to Ramagundam Fertilisers and Chemicals Limited (RFCL) in Telangana, even though the project was commissioned only in 2021, an official statement said. As per the policy all urea plants set up till 2019 would get several incentives including a minimum post-tax return on capital investment. However, the Ministry of Chemicals and Fertilisers proposed to extend the same to RFCL too, which now received green nod from the Cabinet. RFCL is one of the largest fertiliser manufacturing units of South India RFCL is a joint venture Company consisting of National Fertilizers Limited (NFL), Engineers

India Limited (EIL) and Fertilizers Corporation of India Limited (FCIL) which was incorporated in 2015. RFCL is reviving the erstwhile Ramagundam Unit of FCIL by setting up a new gas-based green field neem coated urea plant with the installed capacity of 12.7 lakh tonne per annum. The cost of the RFCL urea project is estimated to be ₹6,165.06 crore. Gas to RFCL plant is supplied by GAIL through the MBBVPL (Mallavaram-Bhopal-Bhilwara-Vijaipur Gas Pipeline) of GSPL India Transco Limited (GITL). The facility integrates the world’s best technologies aiming to meet the demand for urea in Telangana as well as in Andhra Pradesh, Karnataka, Chhattisgarh and Maharashtra. The urea produced at RFCL shall be marketed by National Fertilizers Limited

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Cabinet approves sops to Ramagundam urea plant

02


How govt prevented a farming crisis by increasing DAP fertiliser subsidy as global prices soar

03

Di-ammonium phosphate

fertilisers are the second most

popular in India after urea, and on 19 May, govt

decided to increase the subsidy on them by 140%.

The Union government increased the amount of subsidy it provides for di-ammonium phosphate (DAP) fertilisers to protect farmers from its surging prices due to the increasing cost of raw materials globally. The Department of Fertilisers, in its 19 May notification, has increased the subsidy on DAP to Rs 1,200 per 50 kg bag (or Rs 24,000 per tonne), a 140 per cent increase from the earlier Rs 500 per bag (or Rs 10,000 per tonne). Before this notification, the Indian Farmers Fertiliser Cooperative (IFFCO), the country’s largest fertiliser seller, had increased the prices of a 50 kg bag of DAP by 58 per cent to Rs 1,900 from Rs 1,200 (inclusive of the subsidy). Other companies’ DAP prices also increased by 46-60 per cent. But now, the government has ensured the price of DAP for the farmer will remain the same — Rs 1,200 per bag. DAP is the second most popular fertiliser among Indian farmers behind urea — in 2020-21, 119.13 lakh tonnes of DAP were purchased, compared to 350 LT for the top-selling urea. Thus, a rise in its price would’ve had a severe impact on Indian farmers — for example, growing soybean on an acre of land would’ve cost Rs 1,900 more if the subsidy wasn’t increased. Overall, the government increased its fertiliser subsidy outlay for 2021-22 to Rs 94,305 crore from the budgetary outlay of Rs 79,530 crore. In 2020-21 too, the Centre had increased the fertiliser subsidy outlay to Rs 1.34 lakh crore from Rs 71,309 crore, a jump of nearly 88 per cent.

Rising global pricesDAP contains 46 per cent phosphate and 18 per cent nitrogen, and is often used alongside other fertilisers with the same nutrients, urea and muriate

of potash (MOP). Internationally, the cost of the raw materials used to make DAP, as well as the cost of the finished product, has risen manifold.According to figures from the Department of Fertilisers, Government of India, global prices of phosphoric acid and ammonia, which are key components in making DAP, rose by 60-70 per cent between 10 April and 10 May. While ammonia prices surged to $450 per metric tonne from $210/MT, those of phosphoric acid increased to $998/MT from $590/MT. The prices of sulphur, another ingredient of DAP, jumped to $220/MT from $85/MT. As a result, the price of imported DAP rose to $560/tonne (approximately Rs 40,000/tonne) on 10 May, from $383/tonne (Rs 27,000/tonne) on 10 February. The price of MOP fertilisers also increased to $280/MT from 230$/MT. Ashish Agrawal, senior analyst at India Ratings and Research, told ThePrint: “Potash and phosphoric acid have only a few big players and very few mines in the world, which control production and prices. Raw material demand has also increased this year, with better agricultural production sentiment.” Agrawal added: “Potash and rock phosphate are almost non-available in India, and almost every non-urea fertiliser input is imported. Such high DAP prices of $500-550 per tonne were last seen in 2012-13, while ammonia had hit $450 per tonne in 2015.” At these increased prices, by the time imported DAP would arrive at Indian ports, it would cost Rs 45,950/tonne. Accounting for the government subsidy of Rs 10,000 per tonne and 5.5 per cent GST, the cost-to-company at a no-profit-no-loss basis would to Rs 37,500/tonne,

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Source: The Print

rather than the existing Rs 24,000/tonne. Agrawal explained: “Though (Indian) players held off an increase in prices of fertilisers for a while to not dent demand in the upcoming kharif season, a further surge in product demand and increase in input price forced them to hike the finished product’s price.” But now, the government has increased the subsidy on phosphorus to Rs 45.3/kg from Rs 14.8/kg, while keeping the subsidy on three other crucial ingredients of fertilisers — nitrogen, potash and sulphur — constant. This means that firms will now be able to sell DAP at the same price as before, but the other fertilisers such as NPK and MOP will continue to see increased prices.

Why govt had to actThe government provides fertilisers such as urea and DAP to farmers at

subsidised prices via manufacturers and importers. While urea subsidy varies from time to time, in order to keep its selling price constant amid market fluctuations, non-urea fertiliser subsidy such as that for DAP, NPK and MOP fertilisers, is given on a per-tonne basis to companies, which means final prices can vary. This was the situation emerging before the government, companies and farmers due to the rising global prices. As the government subsidy on DAP remained unchanged from levels announced in April 2020, firms had to increase their fertiliser prices. With the price of urea remaining unchanged at Rs 268/bag since 2012, the DAP price hike could have resulted in farmers increasing urea usage, affecting soil health. In addition, the rising costs would have resulted in the government having to increase crops’ minimum support prices, thus spiking food inflation

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