World may face fertiliser glut by FY12

Global fertiliser supply is expected to outstrip demand by 2011-12 and will support higher levels of food and bio-fuel production, the UN Food and Agriculture Organisation has said in a report.

The supply of fertiliser "" nitrogen, phosphate and potash nutrient "" in the global market will be surplus at 241 million tonnes in 2011-12 compared with the demand of 216 million tonnes, according to the report 'Current World Fertiliser Trends and Outlook to 2011-12'.

FAO fertiliser expert Jan Poulisse said that high commodity prices experienced over recent years led to increased production and correspondingly to greater fertiliser use, leading to tight markets and higher fertiliser prices.