Fertiliser Imports From Russia Up, Make Up 20% Of Whole In April-June

Fertiliser Imports From Russia Up, Make Up 20% Of Whole In April-June


IN A growth that holds diplomatic significance and brings fiscal financial savings, Russia has emerged as the biggest provider of fertilisers to India throughout April-June (Q1, FY23) this 12 months. India imported 7.74 lakh metric tonnes of fertilisers from Russia within the first quarter and that is greater than a fifth of the whole 36.four lakh metric tonnes imported from throughout the globe, based on knowledge shared by Chemicals and Fertilisers Minister Mansukh Mandaviya in a written reply to a query in Lok Sabha on Friday.

The imports from Russia in simply the primary three months of FY23 is the same as almost 70 per cent of 11.02 lakh MTs of fertilisers imported from Russia in the entire of economic 12 months 2021-22 (FY22). In current years, China has been the most important supply for India, with fertiliser imports from the south Asian neighbour accounting for 24 per cent in FY22. Historically, Russia has not been among the many prime fertiliser suppliers to India; in FY22, India’s imports from Russia have been simply 6 per cent of its whole fertiliser imports.

According to sources, imports from Russia have been “10 per cent cheaper” than the prevailing costs within the worldwide market. “India could secure diammonium phosphate (DAP) at $920 a tonne when global prices were hovering above $1,000 a tonne,” a supply mentioned.

The spurt in imports of fertilisers and crude oil from Russia has come at a time when western nations have imposed sanctions in opposition to Moscow following its invasion of Ukraine. This situation might also determine throughout talks with USAID Administrator Samantha Power, who’s scheduled to travel to India throughout July 25-27. She will likely be in India to satisfy a cross part of stakeholders together with local weather specialists, civil society, and authorities officers to debate the worldwide meals safety disaster, and the US-India growth partnership.

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India has thus far maintained a tightrope stroll between the US-led west and Russia on the Ukraine disaster, however has moved in to purchase low cost oil and fertilisers to satisfy its vitality and meals safety wants. High Russian imports have been a degree of India’s dialog with a number of western interlocutors previously few months.

Of the 7.74 lakh MT fertiliser imports from Russia, urea comprised 47,000 MT, DAP 1.32 lakh MTs and NPK (a posh fertiliser containing nitrogen, phosphorus and potassium) 5.95 lakh MTs.

To meet its home demand, India imports a major amount of fertilisers. In FY22, urea consumption stood at 341.73 lakh MTs, of which 250.72 lakh MTs was met by means of indigenous manufacturing and 91.36 lakh MTs by means of imports; primarily from China (25.91 lakh MTs), Oman (15.88 lakh MTs) and UAE (7.95 lakh MTs), based on authorities knowledge.

Explained

Savings by means of diplomacy

India has tried to stroll the diplomatic tightrope by shopping for extra crude oil and fertilisers from Russia even because the latter faces sanctions from the West. This can also be more likely to deliver financial savings amid the autumn within the rupee and better crude oil costs.

Similarly, to satisfy its DAP consumption of 92.64 lakh MTs in 2021-22, India imported 54.62 lakh MTs, of which the utmost 18.59 lakh MTs got here from Saudi Arabia adopted by China (18.15 lakh MTs) and Morocco (11.60 lakh MTs). India’s home manufacturing of DAP was 42.22 lakh MTs in FY22.

For muriate of potash (MoP), India is totally depending on imports. In 2021-22, India imported 24.60 lakh MTs of MoP with the 2 main sources being Israel (5.22 lakh MTs) and Lithuania (5.21 lakh MTs).

In current years, India has imported primarily NPK from Russia. To partly meet its 121.37 lakh MTs demand for NPK, India imported 11.70 lakh MTs, of which greater than half 5.72 lakh MTs got here from Russia, reveals authorities knowledge.

In the wake of Russia’s invasion of Ukraine, fertiliser provide has taken a success globally, inflicting an uptick in costs of the vitamins in current months. Observing that the Department of Fertilisers has been “continuously monitoring” the provision state of affairs, Mandaviya instructed the House, “In the aftermath of the Russia-Ukraine war, the focus is to facilitate long term tie ups and short-term supplies of P&K fertilisers from alternative sources.”

“Further, India has entered a long-term agreement to offtake 10 lakh MTs urea annually from Oman on FOB basis through OQ trading for a period of three years. Shipment under the long-term agreement has commenced during February, 2022,” Mandaviya mentioned within the written reply.

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Mandaviya himself has travelled to a number of nations to safe provide of fertilisers. “I have come back from Jordan after signing a long-term agreement for supply of 30 lakh metric tonnes of rock phosphate of the best grade. Besides, an agreement has also been signed for 2.75 lakh MTs MoP and 2.5 lakh MTs of DAP… The agreement is for five years,” he had instructed reporters on May 17.

Mandaviya mentioned there can be “no shortage” of fertilisers throughout the kharif season 2022.

For kharif 2022, the Centre has pegged the whole fertiliser requirement at 354.34 lakh MTs, of which urea accounts for 179 lakh MTs, DAP 58.82 lakh MTs, MoP 19.81 lakh MTs, NPK 63.71 lakh MT, and SSP 33 lakh MT.

As per the federal government knowledge, the opening inventory of fertilisers out there for the kharif season stood at 125.5 lakh MTs, or 35 per cent of the requirement as on April, 19, 2022. Among particular person fertilisers, the urea inventory is 34.62 per cent of the whole requirement, DAP 41.65 per cent, MoP 30.29 per cent, NPK 25.33 per cent, and SSP 51.52 per cent.



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