Indian farmers will need about 15.3 million mt of urea, 6.5 million mt of DAP, and 2 million mt of MOP for the Karif season, running roughly May through October. NPK demand was pegged at 5.5 million mt and SSPs at 2.5 million mt. The Karif season accounts for a little more than half of the total fertilizer needs.
The estimate was presented by the joint secretary of crops at the agriculture ministry during a conference for state government agriculture officials earlier this week. The government also reiterated its desire to become urea self-sufficient in the next five years.
The Cabinet Committee on Economic Affairs approved a new policy that would encourage new investments in domestic urea production. An independent rating agency, ICRA, said the policy could result in five to six plants either being refurbished or built from scratch by 2019. If the plants come online, the ICRA said an additional 8-10 million mt would be added to domestic production.
So far this year urea sales totaled 27.8 million mt with imports accounting for just less than 7 million mt.