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Developments -Fert. Materials

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HISTORICAL DEVELOPMENTS  

(A) LANDMARKS IN INDIAN FERTILIZER INDUSTRY   

Year	Landmarks
1906	Fertilizer production started
1943	Grow More Food Campaign launched in the wake of great famine in Bengal.
1944	Central Fertiliser Pool created.
1947	Independent India's emphasis on improving domestic production of fertilizer.
1957	Fertiliser Control Order Enactment under Essential commodities Act (ECA) 1955
1964	The Govt. of India appointed    Sivaraman Committee to examine problems in fertilizer distribution.
1966	Inclusion of Private Trade in marketing of fertilizers.
1971-72	The Govt. of India brought control on distribution of fertilizer in view of shortage after oil crisis.
1973	Fertiliser Movement Control Order enacted.
1977	Retention Price and Subsidy Scheme was introduced.
1980-81	Block Delivery Scheme introduced.
1992	Phosphatic and Potassic fertilizers decontrolled.

(B) DEVELOPMENTS IN PRODUCTION OF FERTILIZER MATERIALS   
   

Year of first      manufacture	Fertilizer material manufactured	Factory which first manufactured
1906	Single super phosphate	EID Parry (India) Ltd., Ranipet (Tamil Nadu)
1906	Fertilizer mixture
1933	Ammonium Sulphate	Tata Iron & Steel Co. Ltd., Jamshedpur (Bihar)
1959	Ammonium Sulphate Nitrate	FCI Ltd.,Sindri (Bihar)
1959	Urea	FCI Ltd.,Sindri (Bihar)
1959	Ammonium Chloride	New Central Jute Mills Co. Ltd., Varanasi (UP)
1960	Ammonium Phosphate	FACT, Alwaye (Kerala)
1961	Calcium  Ammonium Nitrate	NFL, Nangal (Punjab)
1965	Nitro phosphate	RCFL, Trombay
1967	Di ammonium Phosphate	GSFC Ltd., Baroda (Gujarat)
1968	Triple super phosphate	DMCC, Ambernath (Maharashtra)
1968	Urea Ammonium Phosphate	CFL,Vizag (AP)
1968	Nitro phosphate with Potash	RCFL, Trombay (Maharashtra)
1973	Pelofos (not produced now)	Orissa Fert. & Chems., Rourkela (Orissa)

   
RECENT DEVELOPMENTS   

FERTILIZER PRODUCTION SCENE - May 2000     

Production of total fertiliser nutrients (N+ P2O5) at 1.128 million tonnes during May 2000 was marginally higher compared to 1.124 million tonnes achieved during May ’99. Production of N at 806 thousand tonnes during May 2000 witnessed a decline of 7 per cent compared to May ’99. The decline was due to a fall in production of straight fertilisers whereas complex fertilisers recorded an increase during the period. Production of P2O5  at 323 thousand tonnes during May 2000, however, increased by about 27 per cent compared to May 1999. Nearly 97 per cent of the increased P2O5 production came through complex fertilisers. The balance 3 per cent came through straight P2O5 (SSP). As against the target, N production fell short by 100 thousand tonnes whereas production of P2O5 crossed it by 39 thousand tonnes during May 2000. Capacity utilisation of N declined from 100 per cent during May '99 to 90 per cent during May 2000. However, capacity utilisation of P2O5 increased from 95 per cent to 106 per cent during the same period.  

Cumulative production of total fertiliser nutrients (N+ P2O5) during April/May 2000 at 2.065 million tonnes was marginally higher by about 0.7 per cent compared to the corresponding period in the previous year. Production of N at 1.494 million tonnes during April/May 2000 declined by 5 per cent compared to April/May  1999.  The decline  was on account of fall in production of straight fertilisers (mainly urea). Production of complex fertilisers, however, recorded an increase during the same period. Total P2O5 production at 571 thousand tonnes during April/May 2000 registered an increase of about 19 per cent compared to April/May 1999. NP/NPK fertilisers contributed 91 per cent of the total increase. The balance 9 percent came through straight P2O5 (SSP). Capacity utilisation of N declined  from 90 per cent during April/May 1999 to 84 per cent during April/May 2000. Capacity utilisation of P2O5, however, increased from 90 per cent to 94 per cent during the same period.  
  

  
   
BUDGET PROPOSALS FOR THE FERTILIZER SECTOR - 1999-2000  
   
 CUSTOMS DUTY  

Heading	Sub heading	Commodity	Prior to 28th February'99	W.e.f 28th February   (Current)
			(Basic+Spl. Customs Duty)	Basic Duty	Surcharge
1.Fertilizer
31.02	3102.10	Urea for use as manure or for the production of complex fertilizers	Nil	5%	--
31.05	3105.30	DAP for use as manure or for the production of complex fertilizers	Nil	5%	--
31.05	3105.40	Mono Ammonium Phosphate	Nil	5%	--
31.04	3104.20	Muriate of Potash for use as manure or for the production of complex fertilizers	Nil	5%	--
31.04	3104.30	Potassium Sulphate containing not more than 52% by weight of K2O	Nil	5%	--
31.05		Mineral or chemical fertilizers containing two or three of the fertilising elements nitrogen,phosphorous and potassium (NPK)	Nil	5%	--
31.05	3105.51	Mineral or chemical fertilizers containing two  fertilising elements nitrogen,phosphorous  (N & P)	Nil	5%	--
31.05	3105.60	Mineral or chemical fertilizers containing two  fertilising elements phosphorous and potassium (P & K)	Nil	5%	--
31.02	3102.21	Ammonium Sulphate	Nil	5%	--
31.02	3102.40	Mixture of  Ammonium Nitrate with Calcium Carbonate or other inorganic non fertilizing substance	Nil	5%	--
2.Intermediate /Raw Material
28.09	2809.20	Phosphoric acid for manufacture of fertilizers	Nil	5%	10%
28.14	2814.10	Anhydrous Ammonia for the manufacture of fertilizers	Nil	5%	10%
25.10	2510.10	Natural Calcium Phosphates (Rock phosphate)	Nil	5%	10%
25.03	2503.00	Crude or unrefined Sulphur	Nil	5%	10%
3.Project import (Fertilizer)
98.01		Fertilizer projects	Nil	5%	10%+Counterveiling duty @ 10%

    
   

   
   
   
EXCISE DUTY    

Heading	Sub heading	Commodity	Prior to 28th February'99	W.e.f 28th February    (Current)
			Basic Duty	Basic Duty
27.10	2710.14	Naphtha for manufacture of fertilizers (feedstock and fuel)	Nil	Nil
		Naphtha for non-fertilizer use	15%	16%
27.10		Furnace oil for manufacture of fertilizers as feedstock	Nil	Nil
		Furnace oil for manufacture of fertilizers (non feed)	5%	8%
		Furnace oil for non-fertilizer use	15%	16%
27.13	2713.30	LSHS for manufacture of fertilizers as feedstock	Nil	Nil
		LSHS for non-fertilizer use	15%	16%

   
   

   
   
   
   

ADHOC CONCESSION FOR PHOSPHATIC AND POTASSIC FERTILIZERS