Low gas supply to hit RCF fertiliser output

Rashtriya Chemicals and Fertilsers (RCF) will not be able to meet the demand of the kharif season due to shortfall in gas from Bombay High. Fertiliser production is reduced by 30 per cent this month due to the fuel paucity.

"This kharif season, fertiliser demand is very high. But we can't meet the demand," said an RCF official. He said the government was not giving enough emphasis on the fertiliser industry. "RCF is getting fuel from Bombay High alone and there is no alternative for the company," he added.

RCF is the main fertiliser provider for Maharashtra, Andhra Pradesh and Karnataka, and these states have got the predicted rainfall from south west monsoon. Also the kharif sowing acreage is not less than that of the last year.

Despite these advantages, the unexpected offshore oil platform fire in Bombay High put even the farmers in a tizzy. Also steel and power industries in Maharashtra are affected by the Bombay High fire of July 27.

Urea and NPK compound fertilisers are the main products of RCF. Sixty per cent of Maharashtra's fertiliser need is served by RCF with Andhra Pradesh and Karnataka sharing the rest. RCF had produced 25 lakh tonne of fertiliser last year.

Due to the fall in production this year, the fertiliser offtake for kharif season is assumed to be lower than the last year, even though the demand is there.

RCF has urea capacity of around 18.8 lakh tonne distributed over two locations at Thal and Trombay, making it the largest domestic producer.

Faced with the problems of gas availability, RCF is eyeing tie-ups with British Gas to meet its requirements.