Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
Notice (8): Undefined variable: urlPrefix [APP/Template/Layout/printlayout.ctp, line 8]latest-news-updates/india-fertiliser-demand-seen-at-record-high-on-rains-3668.html"/> LATEST NEWS UPDATES | India fertiliser demand seen at record high on rains | Im4change.org
Resource centre on India's rural distress
 
 

India fertiliser demand seen at record high on rains

Amplemonsoon rains and higher prices of farm goods are likely to lift Indianfertiliser demand in 2010/11 by 13 percent to a record 60 million tonnes, testing local fertiliser makers' ability to raise output in syncwith the demand, industry officials said.

India's June-Sept monsoon rains, a key factor in determining food grain production and fertiliser demand in the country, were 2 percent above normal in the current year, weather office data showed. "Fertiliser demand will be more this year. Total demand may rise up to 60 million tonnes," Udai Shanker Awasthi, managing director of Indian Farmers Fertiliser Co-operative Ltd (IFFCO), the biggest fertiliser producer in the country, said.

In end-July, when monsoon rains were below normal, Awasthi was expecting the country's fertiliser consumption to rise by 5 percent, but higher rains during August-September erased rains deficit and boosted summer-sown crops. SeeIndia's summer-sown grains output is likely to rise by 10 percent on year, oilseeds production by 17.3 percent, cotton by over 10 percent andcane production is likely to increase by 17 percent, the government said last month.

"Soil moisture level is very good due to higher rains in September. It is likely to boost output of rabbi (winter-sown) crops," said Harish Galipelli, vice-president research with JRG Wealth Management. Farm minister SharadPawar last month said, "this will be one of the most favourable years for wheat and other crops." Output of wheat, the main-winter sown crop, is likely to rise to a record 82 million tonnes in 2010/11, a farm ministry official said.

"When water availability is good, farmers like to maximise their acreage, especiallywhere there are no irrigation facilities and fertiliser usage rises," said R.S. Nanda, Chief Operating Officer, Nagarjuna Fertilizers & Chemicals. The government is also encouraging farmers to boost production of food grains as the country with a population of 1.2 billion is struggling to calm double-digit food inflation. Farmers' shift towards cash crops like cotton and cane, which require more fertilisers than oilseeds and lentils, is also boosting fertiliser demand, said J. Kohareswaran, chairman and managing director, Rashtriya Chemicals & Fertilizers.

Bountiful rains have also replenished water reservoirs, a key source of irrigation water during winter season, encouraging farmers to sow winter crops on larger area. Water level in India's main reservoirs was at 75 percent of capacity in the week to Sept. 30, higher than the 10-year average, government data showed. "Farmers are getting good returns from kharif (summer-sown) crops. Obviously, they will invest more in seed and fertilisers during rabi season," Galipelli said.

But many industry officials were sceptical about domestic fertiliser makers' capacity to cater to spiralling demand. "We have to see how supply side responds. Many times farmers agitate due to fertiliser scarcity. It will be tough task for fertiliser makers to fulfil the demand," said Ashwini Bansod, asenior analyst at MF Global Commodities India.

Lower domestic production may force the country to raise overseas purchases . India imports nearly a third of its fertiliser requirement, with potash and phosphate constituting the bulk of it. Awasthi said imports are likely to be slightly higher this year.