The Hindu : Business : Higher fertilizer demand to boost farm output

Online edition of India's National Newspaper
Tuesday, Sep 14, 2004

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Business

Higher fertilizer demand to boost farm output

By Our Special Correspondent

NEW DELHI, SEPT. 13. Fertilizer consumption is expected to rise significantly in the current fiscal, raising prospects of higher agricultural production.

According to an assessment by the fertilizer industry, the outlook is `encouraging' both for fertilizer consumption and agricultural output in 2004-05.

Taking into account the small rise in fertilizer consumption during kharif this year and the bigger increase expected in rabi 2004-05, the industry expects fertilizer consumption to show a `marked increase' over the modest growth in the previous year.

At the same time, it has called for all out efforts for efficient utilisation of water resources in the light of erratic monsoon in past years and fertilizer consumption being vulnerable to weather aberrations.

In its annual review of fertilizer production and consumption, the Fertiliser Association of India (FAI) has noted that withdrawal of the southwest monsoon from June 24 to end July affected kharif sowing operations. Kharif prospects for some important crops remained uncertain up to the third week of August.

Besides, the area under cultivation lagged behind last year's level in crops such as coarse cereals and pulses although it increased in cases like cotton and oilseeds. "However, the good rains received during later part of southwest monsoon have given rise to the prospects of reasonably good agricultural prospects for rabi 2004-05,'' it says.

This is based on the increased moisture availability in the soil as also the increase in the water levels in the reservoirs to a considerable extent.

The impact of deficient or excessive rainfall in many parts of the country, as reflected in the declining area under kharif crops compared to last year is likely to be offset by revival of monsoon and resowing crops in flood affected areas of the country.

The FAI maintains this is likely to facilitate a significant growth in fertiliser demand during rabi 2004-05.

However, the industry is worried that domestic output especially of phosphatic fertilizers may pose problems if corrective measures are not taken in time.

The year 2004-5 began with a modest level of inventory and production till July this year recorded positive growth.

But industry feels this may be affected in the coming months for phosphatic fertilizers dependent on imported raw materials or feestocks. Besides, it is pointed out that there is no indication of possible reduction in rising international prices.

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