Self-reliance in Fertilizer Sector

06 Aug 2022 Self-reliance in Fertilizer Sector

• To promote self-reliance in the fertilizer sector, the Central Government is providing recommendations and support to Indian fertilizer companies to strengthen their last mile supply chains as a part of the Atmanirbhar Bharat initiative.

Status of Fertilizer Industry in India:

 Importance of Fertilizer:

• Agriculture and its allied sector is the largest source of income in India, this sector contributes 19.9% ​​to the country’s GDP, in which 54.6% of the population is engaged in agricultural activities.
• The agricultural sector largely depends on the fertilizer industry, which manufactures the most important raw material needed for the production of crops.
• In addition, the Indian fertilizer industry plays an important role in the development of healthy crops as it produces phosphorous fertilizers such as Di-Ammonium Phosphate (DAP), Monoammonium Phosphate (MAP), Nitrogen, Phosphorous and Potassium (NPK) and Single Superphosphate (SSP).

Issues:

• Fertilizer industry largely depends on common raw material like phosphate rock, which is mainly sourced from Rajasthan and Madhya Pradesh. However, India imports 90% of its phosphate from other countries.

Fertilizer Manufacture in India:

• Indian Farmers Fertilizer Cooperative Limited (IFFCO) a multi-state cooperative society headquartered in the country’s capital, is the largest fertilizer manufacturer and marketer.
• National Fertilizers Limited is a state owned corporation which is the largest producer of urea accounting for about 15% of the total urea production in the country.

Initiative:

• Neem Coated Urea
• New Urea Policy 2015
• Nutrient Based Subsidy Scheme

Di-Ammonium Phosphate:

• DAP is the second most used fertilizer in India after urea.
• Farmers usually use this fertilizer just before sowing or at the beginning of sowing, as it is high in phosphorus (P) which aids in root development.
• DAP contains 46% phosphorus, 18% nitrogen, which is the preferred source of phosphorus for farmers. It is similar to urea, his favorite nitrogenous fertilizer containing 46% nitrogen.

Initiatives taken to reduce DAP dependency:

 Encouraging joint ventures abroad:

• In this direction, Coromandel International Limited, India’s leading phosphatic fertilizer company, has formalized the acquisition of 45 percent equity share in Baobab Mining and Chemicals Corporation (BMCC), a Senegal-based rock phosphate mining company.
• In addition, mining will be done in Senegal and DAP will be produced in India.
• The Government of India is partnering with industry to enable such investments to achieve supply security targets to meet the country’s fertilizer needs.

Domestic Exploration of Potential Potassium Ore Resources:

The Department of Mines and Geological Survey plans to expedite exploration of potential potash ore resources at Satpura, Bharusari and Lakhasar in Rajasthan, which includes Uttar Pradesh, Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh and Karnataka, among other states.
yojna IAS daily current affairs 6th August

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