Agriculture production in southern India could suffer a major setback this kharif season as the supply of fertiliser in the region is set to drop drastically following a partial cutback of production by major companies.
Some of the region?s fertiliser companies that have partially shut production include Spic, Mangalore Chemicals & Fertilisers, Madras Fertilisers and Fact. Most of the companies have cut back due to an acute cash crunch.
According to industry sources, the southern region may face a shortage of 5 lakh tonne of urea and 2.5-3 lakh tonne of DAP if the present production situation continues. ?The ministry will have to go for imports, as increasing production seems to be difficult. The companies are under severe cash constraints as many of them have still to receive their subsidy arrears from the Union government,? a source said.
Union minister for fertiliser & chemicals Ram Vilas Paswan has called for a high-level meeting in New Delhi on July 26 to find ways to surmount the problem, including additional import of fertilisers.
According to initial estimates, the government will have to import 5-7 lakh tonne of urea, and 2.5-3 lakh tonne of DAP, in addition to 23 lakh tonne of urea and DAP imported annually, sources said. ?It is essential to have a balanced dosage of urea, DAP, MOP and SSP. Even if there is a significant shortfall in the production of one product, cultivation will be hit,? the source said.
An official of Fertiliser Association of India told FE: ?We have stock up to August. However, the situation will turn serious when the required raw materials do not come in time, which may hit foodgrain production.?