India has imported 6.79 million tonnes of urea valued at USD 1.92 billion in the first 10 months of this financial year to meet domestic demand as the cost of inward shipments eased.
The country had imported 8.04 million tonnes (MT) of urea in the entire 2012-13 fiscal, out of which 1.83 MT of urea was from Oman India Fertiliser Company (OMIFCO), a joint venture between Oman Oil Company, Indian Farmers Fertiliser Cooperative Ltd and Krishak Bharati Cooperative Ltd.
Remaining 6.21 MT was imported by state trading enterprises, according to Fertiliser Ministry data.
“There was decline of average USD 50 per tonne in the prices at which urea was imported this year to at USD 340 per tonne, while the last year average year price stood at about USD 389 per tonne,” Indian Potash Ltd Chairman P.S. Gahlaut said.
The government in the first 10 months of 2013-14 imported 1.83 million tonnes of urea from Omifco.
State trading enterprises Indian Potash, MMTC and State Trading Corporation of India has procured the 4.96 MT of urea on behalf of the government.
The country produces about 22 MT of urea against an annual domestic demand of 30 MT. Urea imports are expected to rise in this financial year as farmers increased sowing due to the good monsoon, a Fertiliser Ministry official said.
According to the Ministry’s data, import of phosphate and potash (P&K) fertilisers di-ammonium phosphate (DAP) and muriate of potash (MoP) touched 5.56 MT in the April-January period of 2013-14.
In 2012, urea demand was subdued due to a drought in Karnataka, Maharashtra, Gujarat and Rajasthan.
Urea is sold to farmers at a fixed, subsidised maximum retail price of Rs 5,360 per tonne. The difference between the cost of production and the price is provided as subsidy.
