India to Create Buffer Stock of Fertilizers

Source: The Hindu  (5/4/11)

". . .to ensure supply of potash, di-ammonium phosphate and urea."


The Hindu

To ensure adequate supply of fertilizers during the peak season, the Indian government is planning to create a buffer stock of key farm nutrients di-ammonium phosphate (DAP), muriate of potash (MOP) and urea.

"We operated buffer stock until 2010. Unfortunately, this issue was not addressed in the nutrient-based subsidy (NBS) policy. We are again trying to create buffer stock of three fertilizers," said a senior Fertilizer Ministry official.

The Department of Fertilizers (DOF) is preparing a Cabinet proposal to "maintain buffer stock of 10% of the total requirement of DAP and MOP and 5% of the total requirement of urea," the official said.

This means, about 14 lakh tons of urea, 10 lakh tons of DAP and more than 4 lakh tons of MOP would be maintained as buffer stock every year to obviate any shortages at the local level during the peak sowing seasons, the official added.

Earlier, the government used to create buffer stock of only 5% of the country's demand of urea, DAP and MOP.

According to government estimates, the average demand for urea, DAP and MOP in the country is estimated at 281 lakh tons, 107 lakh tons and 44 lakh tons, respectively.

"We are feeling that we should maintain buffer stock because global prices are going up and we are dependent almost 90%–100% on import of DAP and MOP," the official said.