Govt steps up building fertiliser buffer, turns to 'spot buying'

NEW DELHI: Despite having adequate stock of fertilisers for ensuing kharif season, govt has stepped up its efforts to build a buffer even for the winter crops and is trying unconventional methods like 'spot buying', which is resorted to for immediate operational needs during unexpected supply disruptions.

Besides bringing forward the maintenance of fertiliser manufacturing units, it is carrying out a heat-mapping exercise for all districts for early detection and quick response to any signs of trouble.

Dismissing speculations of shortage of soil nutrients due to conflict in West Asia, officials said all partners of India in fertiliser supply chain have assured govt "uninterrupted supplies" and there will be comfortable stocks by mid-May when the kharif demand peaks.

To deal with challenge of reduction in LNG allocation for fertiliser plants for manufacturing of urea, fertilisers department will procure "spot gas" on a competitive basis from international market and the first phase purchase will be by Tuesday. Officials said while earlier govt would procure spot gas a month in advance, this time it's for the current month.

I&B minister Ashwini Vaishnaw said as on Friday, the urea stock was 6.2 million tonne (MT), one MT higher than same date last year and the availability of DAP at 2.5MT, was almost double of last year. NPK stock at 5.6MT is highest ever and 2.5MT more than last year.

Officials said that normal domestic urea production is 2.5MT a month. It is estimated to be around 1.7MT for this month due to 30% reduction in allocation of LNG supply and advancing of annual plant maintenance optimise gas use and production.

Vaishnaw said anticipating geopolitical uncertainty, govt has brought forward its global urea tender and orders for 1.4MT were placed in mid-Feb. By March-end, 90% of this order is expected to reach India.

On international supply, he said there is a five-year contract with Saudi Arabia for 3MT of DAP and there is no force majeure. Supply of urea, DAP and NPK from Russia via Cape of Good Hope remains uninterrupted. Morocco continues to supply via Cape of Good Hope.

Responding to queries from TOI, K J Patel, managing director of IFFCO, the country's biggest fertiliser cooperative, said, "As of now, we have not received any indication of significant production disruptions at the overseas plants associated with our joint ventures." He added that at present, a limited number of their units are undergoing planned maintenance activities.

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