Fertiliser output likely to set new record at 25.5 MT in FY17

Urea production is likely to increase as all 30 urea plants are operating at 120% capacity

Fertiliser production is likely to touch a new record at 25.5 million tonnes (MT) in the current fiscal owing to high capacity utilisation, Chemicals and Fertilisers Minister Anant Kumar said on Wednesday.

The urea output had reached a record 24.5 MT last year.

India imports 7-8 MT of urea to meet the local requirement of about 32 MT.

"We are continuously working on improving the efficiency.

At present, all 30 urea plants -- public and private -- are operating at 120% capacity. Therefore, urea production is likely to increase by 1 MT to 25.5 MT," Kumar said.

This expected rise in production will save the exchequer around Rs 2,000 crore, he added.

The minister said the government has taken a landmark decision of rationalising freight subsidy to check blackmarketing of urea and ensure easy availability across the country.

"Earlier, in the name of freight, retailers and dealers used to charge more on every bag of urea. Now, on the basis of tariff commission, a more transparent and uniform freight tariff policy has been approved," Kumar said.

The policy, to be implemented retrospectively from 2008, will ease the movement of fertiliser in every corner of the country, he said, and added that the subsidy outgo for the same may rise to Rs 150 crore.