MOEF issues to TOR to GSFC for its Dahej fert-cum-petrochem complex

March 11: The Ministry of Environment and Forests (MOEF) has issued terms of reference (TOR) to Gujarat State Fertilizers & Chemicals (GSFC) for undertaking EIA studies on its greenfield fertilizer-cum-petrochemicals complex at Dahej.
8MOEF has asked for inclusion of sulphur muck management plan in the EIA report, in addition to preparation of toxic chemicals management plan. It has told the company to incorporate proposed measures to prevent leakage/seepage in the storage area of sulphur muck.
8The Ministry has also directed the company to incorporate in EIA report “authorization/membership for the disposal of solid/hazardous waste in TSDF.”
8GSFC is required to furnish “the details of solid and hazardous wastes generation, storage, utilization and disposal particularly related to the hazardous waste calorific value of hazardous waste and detailed characteristic of the hazardous waste.”
8The complex would have capacity to produce 726,000 tonnes per annum (tpa) of ammonia, 10,06,500 tpa of urea, 1,00,000 tpa of caprolactam, 181,500 tpa of sulphuric acid, 40,000 tpa of melamine, 50,000 tpa of poly methacrylate.
8The gas-based complex would produce 231,000 tpa of ammonium sulphate and 15,840 tpa of nitric acid as by-products. It would also have a 60 MW captive power plant.
8The project would be located in Dahej-III Industrial area (GIDC) in Bharuch district of Gujarat. The site is 17 kilometres from Narmada river and 3 km from Arabian Sea.
 click here to go to our "report" section for more information.

Kharif conference?s expert group outlines fert usage strategy

March 11: A group of experts constituted at the recently held National Conference on Agriculture for Kharif Campaign-2014 has outlined strategy for optimum and balanced use of nutrients.
8In its presentation on ‘Adoption of improved technology for efficient use of water, nutrients and plant protection chemicals’, the Group has proposed application of liquid biofertilizers, water soluble and customized fertilizers, slow-release fertilizers and value-added compost as part of elaborate package of practices.
8The Group has also proposed application of potash at higher dose on salt affected soils, in addition to green manuring. It has also underscored the need for application of phospho-gypsum on alkaline soils.
 click here to go to our "report" section for more information.

DSL looks at the silver lining in the messy decontrolled fert business

March 10: DCM Shriram Limited (DSL) (formerly DCM Shriram Consolidated Ltd) is sounding optimistic about its business of marketing of outsourced, decontrolled fertilizers notwithstanding adverse market and policy factors.
8At a recent conference call with analysts, DSL Chairman and senior Managing Director Ajay Shriram said: “The Farm Solution business continues to grow its value added businesses wherein earnings grew by about 35% during Q3 FY14 and 21% for the nine months period ending 31st December 2013. We are strengthening this business and expect to register high growth in the medium term. The bulk fertilizer businesses particularly, DAP and MOP imports are however facing margin pressures due to soft prices besides the impact of reimbursement of subsidy arrears. We have not carried out any further imports in Q3 FY14; however, the inventory liquidation is taking more time due to demand slackness. We intend to keep growing the value added businesses and balance the imports of bulk fertilizers.”
8Answering a question, he pointed out that trading as it is very low margin business. The government determines the price for imports and the differentials at which they want to give it to the industry. Based on that, the margins get very fine. Secondly, what has also hit the company is the subsidy outstanding from the government for DAP & MOP that further erodes the bottom line.
8He stated: “You might be aware that Fertilizer Association of India have gone to the court to take it up with the government for payment of interest to the Fertiliser industry for delayed payments of the subsidy amount. If you recollect, after the budget of 31st March, 2013, the total outstanding to industry was almost Rs. 30,000 crore. By the end of March 2014, it could be a little higher.”
8As for expansion projects, he said: “We are large commodity business with operations in Chloro-Vinyl and Fertilizers and we need to keep our costs comparable with the best in the world. Besides, we are looking at a couple of more projects but it is difficult to give you a figure right now for the next year, for 14-15.”
 click here our reports section to access the transcript of the conference call.

Agrium reckons India and China factors in gauging global nitrogen dynamics

March 10: Canada-based Agrium Inc. has given an insight into the dynamics of global nitrogen markets and the prospects for 2014 by factoring in Indian, Chinese and other drivers in its annual report for 2013.
8The report says: “There are projects in India and Turkmenistan that will not provide significant export supply, but in the case of India may impact import demand, although natural gas supplies may be a restriction. China is also adding significant nitrogen capacity, although delays have been common in China in recent years.”
8The report notes that the Chinese government announced in December 2013 that it would reduce the export tax rate during the Chinese peak demand periods. The peak demand periods run from January 1 through June 30 and November 1 through December 31. The lower export tariffs are still expected to be restrictive enough to provide some support to global urea prices during those months.
8It says: export restrictions in certain nitrogen export markets, such as Algeria and Libya, had a significant impact on the nitrogen market in 2013 and have the potential to limit nitrogen exports from these markets again in 2014.
8As for phosphates, it says: “The Indian phosphate import market is an important one globally and lower demand from India negatively impacted the phosphate market in 2013. This was a result of low North American demand after a significant increase in North American phosphate prices since 2010, exacerbated by the devaluation of the rupee in 2013.”
8It adds: “However, we believe Indian domestic inventories were drawn down in 2013, which should lead to an improvement in import demand in 2014. The global phosphate cost curve declined slightly in 2013 due to lower sulfur and ammonia prices, which are two important raw materials used for phosphate production. However, sulfur markets firmed again in early 2014.”
8As regards potash, it says: “India contracted for increased volumes of potash for its 2013/14 agricultural year, but the subsequent decline in the value of the Indian rupee and uncertainty created by the BPC development resulted in delayed shipments and renegotiated pricing.”
 click here to go to our "report" section for more information.

DAC foresees robust demand for all fertilizers except urea in Kharif

March 7: The Department of Agriculture and Cooperation (DAC) has marginally reduced the projected demand for urea and enhanced the estimated demand for all other major fertilizers during the coming Kharif season.
8According to a DAC presentation delivered at the recently held National Conference on Agriculture for Kharif Campaign-2014, the assessed demand for urea is 159 lakh tonnes in Kharif 2014, as compared to 159.19 lakh tonnes in the corresponding period of previous year. The actual sales were only153 lakh tonnes of urea during the 2013 Kharif.
8The demand for diammonium phosphate has been estimated at 48.57 lakh tonnes as compared to 40.90 lakh tonnes in Kharif 2013. Similarly, the requirement for muriate of potash has been estimated at 15.17 lakh tonnes as against 12.74 lakh tonnes in the previous Kharif.
8The presentation has also made massive increase in the projected demand for NPK complex fertilizes while pitching for a step-up in the availability of bio-fertilizers and micro-nutrients.
8It has made a strong case for timely delivery of fertilizers and all other agri-inputs.
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MMTC braces to import urea to meet Kharif season's requirements

March 6: MMTC Limited has invited tenders for import of unspecified quantity of urea for shipments from load ports latest by 30th April 2014 with an eye on Kharif season’s requirements.
8The company has advised prospective Bidders to clearly indicate specific quantity offered for arrival at Indian ports. They are also required to furnish specific tonnage offered from each port of shipment indicated by them. Such quantities shall be clearly mentioned as “firm quantities”. Offers mentioning “suppliers’ option” are liable to be rejected, it says.
8The tender document says: “offers may be made on both FOBT and C&FFO basis in US Dollars or on FOBT basis alone (indicating the name of the loading port with facilities available and restrictions, if any) per Metric Tonne of Urea for payment against L/C as per para 7 below. While submitting offers on both FOBT and C&F FO firm freight from loading port to discharging port in India must also be quoted separately.”
8It continues: “Bidders are requested to make price offers on Per Metric Tonne basis in US Dollars on cash basis. MMTC reserves the right to reject such offers which are made only on C&F FO basis. For Iranian origin cargo, prices quoted be in AED only and marine Insurance has to be arranged by suppliers at their own cost.”
8Marine insurance (for other than Iranian Origin cargo) shall be arranged by MMTC. Marine insurance for Iranian origin cargo shall be arranged by supplier at their own cost, according to the tender document.
 click here our reports section to access MMTC tender document and its addendum.

NFSM guidelines outline crop-specific fertilizer usage approach

March 6: The operational guidelines for National Food Security Mission for 12th five year plan have outlined the approach towards soil testing and fertilizer application for different crops to maximize yields through efficient usage of nutrients.
8NFSM will have five components (i) NFSM- Rice; (ii) NFSM-Wheat; (iii) NFSM-Pulses, (iv) NFSM-Coarse cereals and (v) NFSM-Commercial Crops. One of the objectives of the mission is to restore soil fertility and productivity at the individual farm level.
8The guidelines state: “As far as possible soil fertility status of the selected field should be known well in advance for deciding the use of fertilizer and soil ameliorants.”
8According to the guidelines, “Once the technologies are identified, a package of inputs including micronutrients and bio-fertilizers should be finalized as to which inputs are to be provided for the conduct of demonstrations. Similarly the inputs to be contributed by the beneficiary farmers (if required) may also be assessed.”
8Beneficiary farmers should be asked to arrange recommended quantity of chemical fertilizers.
 click here For references purposes, we have placed in the reports section the guidelines issued by The Union Department of Agriculture and Cooperation (DAC).

Govt finds Zuari?s imported DAP (IDAP) lot non-compliant; suspends IDAP trading licence in TN

March 5: Tamilnadu has suspended Zuari’s licence for sale of imported diammonium phosphate (DAP) with the Centre finding its Rs 155.61-crore consignment deficient in statutory specifications.
 8Disclosing this developed in the footnotes to latest quarterly results, Zuari Agro Chemicals Ltd (ZACL) said today that the Union Agriculture Ministry has declared 47,635 tonnes of DAP valued at Rs 155.61 crore imported by the company as not meeting the standards specified by Fertilizer Control Order (FCO).
 8It stated: “The Company is in the process of filing a claim for loss suffered by it against the supplier. The contract with the supplier provides that the Company has the right to claim entire amount as compensation from the supplier in the event goods are found not conforming to FCO by Regional/Central test laboratory of Government of India, Faridabad for certification of fertilizers.”
 8ZACL added: “The Company is hopeful to realize the financial loss, if any. The licence for sale of the imported DAP in the state of Tamil Nadu has been temporarily suspended by Department of Agriculture, Government of Tamil Nadu.”
 8The Company boosted its net profit to Rs 17.10 crore in the third quarter of 2013-14 from Rs 4.13 crore in the corresponding period of preceding year.
 click here to go to our "report" section for more information.

DAC moots urea use cut in Punjab & AP to promote wise application of nutrients

March 5: The Union Department of Agriculture and Cooperation (DAC) has pitched for a reduction in urea consumption in Punjab and Haryana as a part of its focus on promoting balanced use of fertilizers.
8In a presentation delivered at the recently held National Conference on Agriculture for Kharif Campaign-2014, DAC’s Integrated Nutrient Management (INM) Division called for promotion of site specific nutrient management (SSNM). This should comprise soil testing based application of fertilizers, use of soil fertility maps developed by IISS Bhopal, use of area specific customized fertilizers and adoption of new ICT based Tool ‘Nutrient Expert’ developed by IPNI/CIMMYT for maize and wheat.
8It also calls for conversion of 5% of DAP demand into SSP demand as SSP is indigenously produced and cheaper fertilizer compared to DAP. In Nutrient value, SSP provides extra value for calcium and sulphur.
8The INM Division is compiling the practices being adopted by various states in respect of soil tests /fertility maps based application of fertilizers, it says.
8The presentation has noted that Indian Institute of Soil Sciences (IISS) Bhopal has uploaded the soil fertility maps of about 170 districts of 19 major states on their website (www.iiss.nic.in/index.html).
8The presentation says that current production of bio-fertilizers as per recommended dose of bio-fertilizers (kg/hectare) can cover only 10% of total gross cropped area of our country.
8The presentation has also given a break-up of the estimated demand for major fertilizers during the Kharif 2014.
 click here our reports section to access the INM’s presentation.

RCF solicits offers for road supply of SSP in WB

March 5: Rashtriya Chemicals and Fertilisers Limited (RCF) has decided to empanel firms that can supply single super phosphate (SSP) by road in West Bengal.
8The company is seeking offers “for empanelment of parties for supply of powder SSP and granulated SSP for marketing in West Bengal, for one year extendable by six months from manufacturers of West Bengal.”
8It says: “The tender is for a total of approx. qty of 10,000 MTs of SSP (8000 MTs Powder & 2000 MTs Granulated). The empanelment will be for a period of three years.”
 click here our report sections to view RCF tender document.

Yara highlights India?s untapped agricultural potential

March 4: Norwegian fertilizer producer Yara has underscored the prospects for improving the application of fertilizers and enhancing crop yields in India as part of its annual initiative to give fresh insight into global dynamics of fertilizers sector.
 8In its latest Yara Fertilizer Industry Handbook released on 28th February 2014, the company says: “There are considerable differences in agricultural intensity (measured here in annual nitrogen applied per hectare) between the main agricultural regions of the world, with higher intensity in the northern hemisphere than the southern hemisphere. For example, the same crops may have application rates 2-3 times higher in the US than in Brazil.”
 8It adds: “This illustrates the significant remaining potential for improved agricultural productivity especially in India and Brazil. The existing differences in annual application rates are especially significant when taking into account that these regions have a much higher rate of double-cropping (2 harvests per year) than in the northern hemisphere.”
 8The Handbook shows that India is the world’s 3rd largest ammonia producer and 2nd largest ammonia importer. The country is also the world’s 2nd largest urea producer and the largest urea importer.
 8It notes that urea production increased to 161.4 million tons in 2012, up 4.5% from 2011. During the years 2002-2012, urea production grew on average at 3.5% per year. The largest producers are also the largest consumers, namely China and India. China is self-sufficient on nitrogen fertilizer but India’s imports requirement is growing.
 click here our reports section to access the Handbook and the allied presentation.

Kharif Campaign focuses on imbalanced usage of fertilizers

March 4: Initiatives to address imbalanced use of fertilizers and deteriorating soil health cropped up at the discussion at the two-day National Conference on Agriculture for Kharif Campaign-201 that concluded here on 27th February.
 8The initiatives discussed at the meeting include soil testing, customized fertilizers, appropriate methods of application of fertilizers, etc.
 8As put by the agenda notes for the Conference, “Overuse of marginal lands, imbalanced use of fertilisers, deteriorating soil health, diversion of agricultural land to non-agricultural uses, misuse of irrigation water, depleting aquifers & irrigation sources, salinity of fertile lands and water-logging continue as before.”
 8The agenda notes say: “For making agriculture sustainable, to meet country’s food requirement, soil health and water availability are to be maintained at levels that would re-assure farmers to pursue agricultural activities with higher level of productivity.”
 8According to the Notes, “Maintenance of soil health is a formidable challenge to ensure productivity, profitability and national food security. The challenge for agriculture over the coming decades will be to meet the country’s increasing demand for food in a sustainable way. Declining soil fertility and mismanagement of plant nutrients have made this task more difficult. Concerns also are growing about the long-term sustainability of agriculture.”
 8The Notes add: “Both the over-and under application of fertilizer and the poor management of resources have damaged the environment. Plants need a given quantity and mix of nutrients to flourish. The higher the yield, the greater is the nutrient requirement. Deficiency of one or more nutrients can inhibit or stunt plant growth. But excess nutrients, especially those provided by inorganic fertilizers, can be wasteful, costly, and in some instance, harmful to the environment.”
 8The Notes have emphasized the importance of appropriate usage of fertilizers. “In most cases, placement of fertilizers has to be preferred over the broadcast application. This is especially important for phosphatic and potassic fertilizers,” they say.
 8The Union Department of Agriculture and Cooperation has advised the States to give “more emphasis on timely sowing, maintaining optimum plant population, efficient use of fertilizer and need based plant protection measures.”
 click here our reports section to access agenda notes for Kharif 2014.