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India's urea imports increased 23 per cent to 8.75 million tonnes last fiscal on higher demand, according to an official data.
The country, which is among the world's top three consumers of urea, had imported 7.09 million tonnes of the fertiliser in 2013-14. It produces about 22 million tonnes urea as against the annual domestic demand of 30 million tonnes.
Urea is imported by three state trading enterprises (STEs) - Indian Potash Ltd, MMTC and STC on behalf of the government to meet domestic shortfall.
The government also imports the fertiliser through OMIFCO, which is a joint venture project of IFFCO and Kribhco, with an offtake agreement.
STEs import urea at average price of about $300 per tonne -- lower than the previous year's average price of about $322 per tonne, according to sources. Urea shipped by OMIFCO is much cheaper than STEs soil nutrient.
The total soil nutrient dispatched in December from ports and godowns to different cities across the country was highest ever at 3.48 million tonnes, they said.
The country's urea imports had dipped 12 per cent to 7.08 million tonnes in 2013-14 due to carry-over stocks from the previous year. It had imported 8.04 million tonnes of urea in the entire 2012-13 fiscal.
Urea is provided to farmers at a fixed subsidised maximum retail price of Rs 5,360 per tonne. The difference between the cost of production and MRP of urea is provided as subsidy to manufacturers.
Meanwhile, in order to make indigenously produced urea more efficient, government has made it compulsory to neem coat the 75 per cent of the total soil nutrient produced in the country.
