Ammonium nitrate import policy to be regulated

The Directorate General of Foreign Trade (DGFT) is set to tighten the import of ammonium nitrate to make it more regulated for easy monitoring.

According to official sources close to the development, the need for tightening of import of the chemical  follows reports of its misuse in terror activities. Usually the chemical is used for fertilizer and triggering blasts in mines and quarries.

While fertilizer industry consumes part of the chemical, the main user is the construction industry where it is used for blasting. Reportedly, the total size of the industry is around Rs 1,200 crore of which imports contribute half of it.

Official sources said the import may be made through licenced entities compulsorily. In the domestic market, the chemical is now classified as explosive as per ammonium nitrate rules 2013 of Department of Industrial Promotion and Policy (DIPP).

Every user consuming above 5 kg of the chemical has to apply for licence in addition to those who already possess one for using ammonium nitrate fuel oil mixture and detonators.

At present, the import of this chemical is unregulated and is done unbagged. The new norms may make it mandatory for the chemical to be imported in bagged form or in sealed bags right from the place of origin. Another concern in this import is that the chemical is imported in bulk. Usually it is bagged on the port which is highly risky as part of the import goes unaccounted in spillage, said sources.

Reportedly, in 2011-12, India imported 342,265 tonnes of raw ammonium nitrate which is  expected to touch 350,000 tonnes this financial year. Out of the total production of the chemical in India of around 7,00,000 tonnes, most of the ammonium nitrate imported in India is from Russia and South Africa, by companies based in Nagpur.

Industry sources argued that the import of the quantity or quality of the chemical was not regulated as much of the import was of fertilizer grade and not of explosive grade, which is why it does not pose a security threat. However with the experience of the blasts in the recent past, it was observed that the difference in grade can be easily overcome by using emulsifiers.

In fact any substance having more than 45% of ammonium nitrate is deemed to be an explosive as per the notification issued by the Ministry of Commerce and Industry on July 21, 2011.