July 10, 2013
India''s urea import up 48% in Apr-Jun
In the April-June quarter of the current fiscal, India''s urea import has increased by 48% at 11.09 lakh tonnes (1,109,000 tonnes) as demand for the nutrient is expected to increase this year on normal monsoon.
India had imported 7.47 lakh tonnes (747,000 tonnes) in the same period in 2012-13, said a senior Fertiliser Ministry official.
Urea is imported mainly by the government''s three canalising agencies - Indian Potash Ltd (IPL), MMTC and STC. The country had imported 80.44 lakh tonnes (8,044,000) in the entire 2012-13 fiscal at an average cost of US$417 per tonne.
However, in the current fiscal so far the tenders awarded are less than the last year''s average price of US$417 per tonne, the official added.
The three tenders have been floated so far are by IPL, MMTC and STC of 5.25 lakh tonnes (525,000 tonnes), 10.40 lakh tonnes (1,040,000 tonnes) and 5.50 lakh tonnes (550,000 tonnes) respectively. The official said that 25-30 lakh tonnes (2,500,000 tonnes) of urea import are estimated for the kharif season. The demand is expected to rise this year as India is likely to have normal monsoons.
IPL, MMTC and STC are in the process of importing more urea to meet the demand in kharif season, sources said, adding that the country is importing urea from Iran, Indonesia and IFFCO''s JV plant in Oman.
In 2012, urea demand was hit because of drought in four states - Karnataka, Maharashtra, Gujarat and Rajasthan. Urea is provided to farmers at a fixed subsidised maximum retail price (MRP) of INR5,360 (US$89) per tonne. The difference between the cost of production and MRP of urea is provided as subsidy. The domestic production of urea stands at about 220 lakh tonnes (22,000,000 tonnes).