December 28, 2011
Indian fertiliser sector halves imports
India's fertiliser firms are slicing down its imports amid low demand and rupee depreciation, according to Indian Farmers Fertiliser Cooperative Limited (IFFCO).
In India, major fertilisers include Urea Diammonium Phosphate (DAP) and Muriate of Potash (MoP). UREA is regulated while the supply and price of other two are decontrolled. The sector at present is facing huge demand and supply gap in Indi and is expected to continue till May June when the Kharif season starts.
The companies are presently trying to sell off the stocks before March 2012. Direct selling to farmers will be too difficult even with discount and no sale will increase inventory cost for the companies. Therefore, we propose to lure dealers with credit to buy the product and pay when they offload it to the farmer" said a company source.
All other companies are negotiating the existing contracts even after the shipment is done. The payment is done at the prevailing spot rate of the rupee dollar.