Urea imports dip 12 per cent to 7.08 MT in 2013-14.

NEW DELHI: India's urea imports have decreased by 12 per cent to 7.08 million tonnes (MT) of urea in the year 2013-14, due to carry over stocks from the last year.

The country had imported 8.04 MT of urea in the entire 2012-13 fiscal, according to the Fertiliser Ministry data.

Urea is imported by three STEs (state trading enterprises) - Indian Potash Ltd (IPL), MMTC and STC on behalf of the government to meet domestic shortfall. The country produces about 22 MT against an annual domestic demand of 33 MT.

In the year ended on March 31 this year, nutrient imported by IPL and STC has decreased to 2.54 MT and 0.74 MT, respectively as compared to 3.62 LT and 2.03 LT in the year 2012-13.

However, there was an over three-fold increase in imports by MMTC to 1.68 MT as compare to .54 MT during the period under review.

Besides these three STEs, the government also imports urea from OMIFCO, which is a joint venture project of IFFCO and Kribhco, with an offtake agreement.

According to data, the offtake of urea from Omiffco in the year 2013-14 has also increased to 2.12 MT against 1.83 MT in the year 2012-13.

A Fertiliser Ministry official said the demand was expected to rise this year as sowing area rose on the back of good monsoon, but there was enough inventory of the last year which was carried over.

Urea is provided to farmers at a fixed subsidised maximum retail price (MRP) of Rs 5,360 per tonne. The difference between the cost of production and MRP of urea is provided as subsidy.

Source : economictimes.indiatimes.com