India Slows Flow of P&K

February 4, 2013 06:14 AM

annadatha l The Government of India has announced major cutbacks on imported P&K. Sendouts from Indian DAP producers will be limited as well in response to a surplus at all points in the supply chain caused by lagging P&K demand. The Department of Fertilizer has issued verbal notice that no 'Movement Control Orders' will be approved for the time being.

A Movement Control Order must be issued by the Dept. of Fertilizer before the importer or producer can claim subsidy Rupees from the government. The government has made it clear that no such issuances will take place.

Fertilizer producers in India imported around 58 lakh tonnes (lt) of DAP and 4lt of NPK&S complexes between April 2012 and January 2013, but nutrient subsidies in India have NPK pricing standing on it's ear (Click here to read more).

“With some 55 lt opening stocks of DAP and complexes likely on April 1, there is enough material to take care of the coming kharif season requirements. The Government does not want to incur unnecessary additional subsidy burden from fresh imported material. That is probably why they are discouraging imports now,” a source told

The restrictions include imports and sendouts from domestic producers and are hoped to help the government save money on 2013's fertilizer subsidy budget. Currently, one Indian Rupee is equal to $0.02 in U.S. dollars. In other words, it takes 53.52 Indian Rupees to equal one U.S. dollar.

Photo credit: antkriz / / CC BY

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