Delay in fixed cost reimbursement by government weakening profitability of urea units in India – ICRA

Urea units in India have been facing under-recoveries because of the non-revision of fixed costs being reimbursed under the prevalent subsidy mechanism, ratings agency ICRA said in a report. The fixed costs were last revised in April 2014 under Modified New Pricing Scheme-III (Modified NPS-III) by Rs. 350/tonne for all urea units with a floor […]

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Currency depreciation and rising gas costs to increase India’s urea subsidy shortfall to Rs. 9,000 crores: ICRA

Urea players have been witnessing rising gas costs, which coupled with the depreciation of rupee against the US dollar will result in higher cost of production, ratings firm ICRA said in a report. As per ICRA estimates, for one US dollar rise in gas costs, the cost of production for urea rises by Rs. 1,800-2,000/MT […]

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India’s fertiliser sector seen boost in the upcoming budget as government focuses on farming, says ICRA

The annual Indian budget due next month is likely to have several policy measures to give a stimulus to the agricultural sector such as on irrigation, crop insurance, e-NAM and agricultural credit, which will help the fertiliser players, ICRA said. The sector is highly regulated with controls on several aspects pertaining to their business. The […]

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DATA – India says availability of fertilisers far exceeds requirement

Availability of fertilisers in India far exceeds the requirement, the government said in a statement. Following is the data for cumulative requirement/ sales and availability of urea, DAP and NPK fertilisers for April –June 2017: (all figures in LMT) Fertilizers Requirement/ sales Availability Urea 63.6400 80.2800 DAP 18.3563 25.3385 NPK 13.8483 24.3049 TOTAL 95.8446 129.9234  The figures of cumulative requirement and […]

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Five defunct fertilisers plants in India to be revived 

The Government has approved to revive defunct fertiliser units of the Fertiliser Corporation of India Limited (FCIL)/Hindustan Fertilizer Corporation Limited (HFCL) by setting up of new urea plants, the chemicals and fertiliser minister told parliament. Mansukh L. Mandaviya said the the plants with a having capacity to produce 1.27 Million Metric Ton (MMT) urea per […]

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Daily Masala

Here is what others are talking about this morning: Wall Street dip halts Asian shares’ rising streak, oil slips Oil prices fall on U.S. crude inventory build, record Saudi output Gold holds steady on weaker dollar Could Friday’s USDA Report Push Corn Prices Lower? Granting China MES will be ‘catastrophic’, aluminium industry warns U.S. Steel […]

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