Urea firms gear up to meet demand in MP

With the prediction of a normal monsoon this year, Urea manufacturing companies including Indian Farmers' Fertiliser Co-operative Ltd (Iffco) and Krishak Bharti Co-operative Ltd (Kribhco) are eyeing the fertiliser market of Madhya Pradesh.

Urea consumption was low during 2001-02 (695,000 tonnes) and 2002-03 (708,000 tonnes) because of drought like conditions in the state. But because of the normal rainfall in 2003-04, urea consumption went up to 950,000 tonnes. It is expected to rise further in the current year.

"The consumption is likely to go up to 1.1 million tonnes this year. Companies like National Fertilisers Ltd (NFL) will have an advantage since they have their plants in the state," SP Shukla, joint general manager (marketing) of Iffco (western zone), told Business Standard.

In 1999-2000, 1.11 million tonnes of urea was consumed. But since then there was a steep fall in the consumption.

With the government policy of regulated and de-regulated supply of urea in a 50:50 ratio, Iffco and Kribhco are planning to supply 130,000 tonnes and 84,000 tonnes of fertiliser, respectively, during the kharif season (April-September). It included Iffco's 42,000 tonnes and Kribhco's 24,000 tonnes of regulated supply.

While companies like NFL (50,000 tonnes), Rashtriya Chemical Fertiliser (10,000 tonnes), GNFC (20,000 tonnes), Chambal Fertilisers (20,000 tonnes), GSFC (10,000 tonnes) and Shri Ram (10,000 tonnes) will cater to the demand of the regulated market.

"We will first cater to our 4,300 co-operative members and then we will focus on the Mahakaushal and Malwa belts for crops like jowar and cotton. Soya farmers account for 10 per cent of the demand," he said.

The use of nitrogen, phosphorus and potash fertiliser was 44.3 kg a hectare in 2003-04 compared to 34.5 kg a hectare in 2002-03. "It will reach 75 kg a hectare if this year monsoon is better," said DP Singh, state marketing manager of Kribhco.

Of the total sown area, kharif crop accounts for 10.66 million hectares and rabi crops 9.26 million hectares in the state.