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Expect comfortable fertiliser stocks for kharif sowing: Vaishnaw
India expects sufficient fertiliser stocks for the kharif season, using alternative routes for supplies amid geopolitical tensions, despite rising demand.
The government expects “comfortable fertiliser stocks” during the kharif, or summer-sown, season because alternative maritime routes such as the Red Sea and the Cape of Good Hope around the southern tip of Africa are being used for inbound supplies, Union information and broadcasting minister Ashwini Vaishnaw said on Saturday while briefing reporters.
Anticipating geopolitical risks in West Asia, the government advanced a global tender for urea, the most widely used crop nutrient, placing orders for 1.3 million tonnes in mid-February, the minister said, seeking to allay concerns over shortages arising from the West Asian crisis. The government expects roughly 90% of the quantity to arrive by the end of March.
Shipments through the Strait of Hormuz, a crucial waterway between Iran and Oman, have nearly halted after the United States and Israel attacked the Islamic republic, disrupting global supplies of crude, gas and fertilisers. India relies on the strait for more than half of its energy imports.
The country’s current fertiliser reserves stand at about 18 million tonnes, which is 36% higher than the levels recorded in March last year.
Though the country faces no immediate fertiliser shortage, existing stocks are not sufficient to meet the entire demand for the upcoming summer cropping season.
For the full-season demand of urea, “we have time to ramp up production and cover up” the deficit, Vaishnaw said. Domestic production currently stands at about 2.5 million tonnes a month, according to the minister. India is the world’s largest importer of urea.
The country currently has 6.2 million tonnes of urea, nearly one million tonnes more than a year ago. However, this accounts for only about a third of the total urea consumption of 18.2 million tonnes recorded during last year’s summer season (June 1–September 15), according to official figures.
Gas companies have advanced plant maintenance schedules to help meet demand, while imports of Saudi Arabian DAP under a five-year contract for 3 million tonnes are continuing without disruption, the minister said.
Vaishnaw added that fertiliser supplies from Russia, including urea, DAP and NPK, as well as imports from Morocco were continuing uninterrupted via the Cape of Good Hope. Morocco, which has one of the world’s largest phosphate reserves, is a key supplier to India.
“More farmers are shifting to paddy and maize due to growing demand for biofuels. Along with good monsoon, this has significantly increased India’s total fertiliser demand, necessitating higher imports over the last two years,” said Rahul Chauhan of iGrain Ltd.
