Faced with a shortage of raw material, Indian fertiliser companies are now looking for partners to set up plants in gas-rich countries abroad.
"Indian entities are in dialogue for joint venture in the field of phosphatic and potassic fertilisers in countries such as Jordan, Morocco, Tunisia, Australia, Syria and Canada," the Economic survey said today.
Availability of raw materials and intermediates has been a major bottleneck in increasing domestic production of fertilisers and Indian companies are now exploring joint ventures in ammonia and urea projects in gas-rich countries, the survey said.
Taking the lead, IFFCO recently entered into an agreement to buy 10 per cent stake in Canada's Americas Petrogas and 20 per cent stake in its ammonia making subsidiary GrowMax.
India produced 199.2 lakh tonnes of urea in 2008-09, 29.9 lakh tonnes of DAP and 68.5 lakh tonnes of complex fertilisers, while imported 56.7 lakh tonnes urea, 61.9 lakh tonnes of DAP and 56.7 lakh tonnes of MOP. The import of urea is likely to be 44.9 lakh tonnes in 2009-10, 55.6 lakh tonnes DAP and 42.3 lakh tonnes of MOP.
"There is no domestic production of MOP, its requirement is met fully by imports. About 85 per cent of raw materials for DAP and complexes are also being imported." the survey said.
