Production of nitrogenous fertilisers in the fiscal year 1998-99 was 10.48 million tonne representing a four per cent growth over the previous year. Production of phosphatic fertilisers was 3.07 million tonne.

Supply condition continued to remain good with no urea imports necessitated in March. Despatches were also up. The average loading of fertilisers by rail in March were reportedly higher at 3033 equivalent BG wagons per day as against 2997 BG wagons in the corresponding period last year.

Production is expected to go up significantly in 1999-2000 following the commissioning of some major projects which are in an advanced stage of completion. Of the six projects worth Rs 4122 crore, the department of fertilisers expects additional capacities of 9.75lakh tonne of urea, 7.9 lakh tonne of NPK, 23.07 lakh tonne of DAP and one lakh tonne of NP fertilisers to be completed soon.

Another four urea plants, each with a capacity of 7.68 lakh tonne per annum, have reportedly been cleared by the PMO's office. Meanwhile, Tata Chemicals has shelved its plans of doubling the capacity of its urea plant at Babrala in Uttar Pradesh. The decision was taken in view of the unfavourable administered pricing regime for urea according to the company.

The National Pharmaceutical Pricing Authority (NPPA) revised the prices of a few bulk drugs and formulations. Prices of ranitidine was increased from Rs 1,203 to Rs 1,255 per kg. Dimethyl cholorotetracycline HCL was raised also from Rs 4,332 to Rs 4,550 per kg.

The prices of 20 formulations were hiked while the prices on three formulation packs were reduced. The price of vitamin B complex with vitamin C, E and zinc (Zevit capsule) and Becosule capsule were among those which were revised downward. Becosule vitamins, a brandoriginally owned by Pfizer was assigned to a SSI producer. Income from the sales were booked by Duchem a 100 per cent owned subsidiary of Pfizer. NPPA order would result in the prices of a strip of 10 capsule becoming cheaper by a little over 31 per cent.

The recent notification, the first one of its kind, seems to aim at getting production farmed to SSI within the ambit of DPCO. The prices of Zevit capsules, produced by Remidex Pharma and Smithkline Beechem, were reduced by 50 per cent to Rs 8.50 per strip of 10 capsules. The NPPA also announced a reduction in the prices of Humalog, an insulin drug made by Eli Lilly.

The ministry of chemicals and fertilisers has mooted the idea of having an uniform, maximum retail price, printed on all formulations. This price would include all local levies and taxes. In a related development all manufacturers have been asked to print a red band on the packages of controlled formulations and a green band on decontrolled formulations in a bid to facilitate easyidentification and monitoring.

(Excerpted from Centre for Monitoring Indian Economy (CMIE) report,May 1999)