Centre eyes Gulf, Africa for fertiliser JVs

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Mumbai, Apr 9: The Centre has asked the department of fertilisers to explore options of procurement from the Gulf, sub-Saharan Africa and north Africa. It has also asked the department to look into the possibilities of establishing joint ventures in these countries to cater to the growing Indian market.

The Centre’s intervention is crucial especially when the demand during Kharif 2006, with respect to urea, was assessed at 123.37 lakh metric tonne against the availability of 125.04 lakh metric tone and sales of 113.65 lakh metric tonne.

The demand for diammonium phosphate (DAP) was 33.10 lakh metric tonne against availability of 48.67 lakh metric tonne and sales of 32.06 lakh metric tonne. In case of potassium chloride (MOP), the demand was 14.66 lakh metric tonne while the availability was 20.47 lakh metric tonne and sales of 9.99 lakh metric tonne. The department of fertilisers has proposed to raise the production of urea from the present installed capacity of 197 lakh metric tonne to 300 lakh metric tonne by the end of 11th Plan period.

Informed sources told FE: “The department has initiated various steps to boost production and productivity, removal of regional imbalances in production and distribution and securing long term tie-ups for supply of feedback and raw material. However, these efforts are not enough to meet the rising demand for fertilisers in the country and thus the department has been asked to concentrate on Saudi Arabia, Kuwait and Qatar in the Gulf, Nigeria, Angola and Mozambique in sub-Saharan Africa, Morocco, Tunisia and Togo in north Africa and Belarus for potash in east Europe.”

Sources said the Centre has also asked the department of fertilisers to explore an option of cooperation with Saudi Arabian authorities in the Maadan phosphate project. The Centre expects the department to send a high-level team to Saudi Arabia to hold talks with Sabic and Aramco for fertiliser supply.

Moreover, the Centre has asked the department to look into the possibility of engaging Kuwait for cooperation and investment in the revival of closed fertiliser units in the country.