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Mint
4 days ago
- Business
- Mint
China has now disrupted specialty chemical market. Startups step up
Indian startups are taking a crack at another market facing Chinese squeeze: specialty fertilizers. The bulk of such agrochemicals, designed to deliver targeted nutrients based on soil and crops, are imported, with China contributing 80% of the shipments, according to industry estimates. However, minister of state for chemicals and fertilisers Anupriya Patel informed the Lok Sabha on 25 July that China has reportedly withheld shipments to India over the past two to three months. Just like in the case of rare earth magnets used by the auto industry. Now, Nagpur-based Ishita International and Mitrasena Pvt. Ltd, and Ahmedabad's Agricell Crop Science, among other startups, are producing mono-ammonium phosphate and mono-potassium phosphate water-soluble fertilizers, along with other categories, used to boost horticultural crop yields. Raw micronutrients required are still imported, but with little reliance on China. 'Amid rising demand, some of the startups have demonstrated strong potential for rapid growth and expansion in this segment,' said Rajib Chakraborty, national president, Soluble Fertilizer Industry Association (SFIA). 'Their innovation, agility, and production readiness position them well to lead the next wave of self-reliant, Make-in-India development in the specialty fertilizer space.' The segment was last valued at about $1.02 billion in 2023 compared to India's overall fertilizer market worth $40.5 billion in 2023,Chakraborty said, citing market research reports. Industry stakeholders peg the specialty fertilizers' share at 3% to 5% of the total. These are not covered under the government's nutrient-based subsidy scheme. While regular fertilizers deliver key macronutrients like potassium, phosphorus and nitrogen, specialty fertilizers are designed for the specific needs of a particular crop, soil type and environment. They include water-soluble nutrients, liquid foliar sprays, slow and controlled-release formulations, sulphur products and bio-stimulants. Until recently, India lacked the technology to produce two of the most essential water-soluble fertilizer grades: mono ammonium phosphate (MAP) and calcium nitrate, Chakraborty said. But that has changed. Ishita International has developed an Indian raw material-based technology capable of producing MAP, liquid calcium magnesium, calcium nitrate, calcium nitrate with boron, and several other water-soluble fertilizers in a single process,according to Yogesh Chavhan, business development manager, WSF at Ishita International. The pilot plant is likely to be commissioned in the next 45 days, said Chavhan. 'We are technologically equipped with an integrated water-soluble fertilizer (WSF) production capacity." Mitrasena started operations around 26 months ago. '...We are getting good traction from the farming community," said Manohar Malani, co-founder at Mitrasena, a startup producing non-toxic crop protection chemicals and water-soluble fertilizers. Specialty fertilizers include polymer-coated urea, which is released slowly into the soil and is available to plants over a long period; chelated micronutrients that are effective in alkaline soil; water-soluble fertilizers such as monoammonium phosphate and potassium nitrate; and stabilized nitrogen fertilizers with urease inhibitors, which allow efficient nitrogen use in soil. 'We forayed into specialty liquid fertilizers in 2016, but demand started emerging only after 2019,' said Prakash G. Patel, proprietor of Agricell Crop Science. 'Buoyed by the response and encouraging demand, we have decided to ramp up the capacity from 900,000 litres to 5 million litres per annum." According to Pushan Sharma, director at Crisil Intelligence, the demand for specialty fertilizers has been estimated to be around 1.2-1.3 million tonnes annually as in FY25. Among the major categories, micronutrients have the largest share of about 50-55% in total consumption of such chemicals, followed by water-soluble fertilizers (about 25-30%), sulphur (12-15%) and liquid fertilizers. India imports the bulk of the micronutrients from Greece, Turkey, the US, Spain, Singapore and the Netherlands, and a small quantity of zinc sulphate monohydrate from China, according Patel's reply. So the availability of raw materials is not a concern. Still, the Indian Council of Agricultural Research and state agricultural universities are advancing indigenous solutions, including zinc ethylenediaminetetraacetic acid to prevent zinc deficiencies, boron blends, nanofertilizers, biofertilizers enriched with micronutrients, and zinc-solubilizing bacteria. "These research-based innovations are helping India move towards self-reliance in nutrient management, reduce import dependency, and ensure sustainable agricultural productivity," said Patel in Lok Sabha.
Mint
23-07-2025
- Business
- Mint
Supply cuts from China prompt India to step up high-end fertilizer capacity
New Delhi: The Centre is looking at ways to step up the production of specialty fertilizers for high value fruit, vegetables and flowers, amid a supply disruption from China, a senior government official told Mint. Preliminary discussions have already been held between the government and leading state-owned, cooperative and private sector fertilizer producers, the official said. Specialty fertilizers include polymer-coated urea that is released slowly into the soil and is available to plants over a long period, chelated micronutrients that are effective in alkaline soil, water-soluble fertilizers such as monoammonium phosphate and potassium nitrate, and stabilized nitrogen fertilizers with urease inhibitors (NBPT) which allow efficient nitrogen use on soil. "We have asked the manufacturers including companies in public sector and private sector to increase availability of specialty fertilizers," said the person quoted above, who spoke on condition of not being named. The development assumes significance given India's heavy reliance on China for supplies of specialty fertilizers. Nearly 80% of India's specialty fertilizer imports including water-soluble nutrients, liquid foliar sprays, slow and controlled-release formulations, and bio-stimulants are sourced from Chinese manufacturers, according to industry estimates. Chinese supplies have been disrupted for the past two months with authorities in that country using various procedures to block exports to India without imposing as ban, The Economic Times reported on 26 June. Nishant Kanodia, promoter and chairman, Matix Fertilisers & Chemicals Ltd, said, "India's growing focus on sustainable and high-efficiency agriculture is creating a meaningful shift in the fertilizer landscape. While our entry into this segment is recent, we are committed to building capabilities that contribute to India's long-term self-reliance and soil health goals." An IFFCO (Indian Farmers Fertiliser Cooperative Ltd) spokesperson said that the cooperative started production of water soluble and specialty fertilizers since 2011. The current capacity is 15,000 tonnes per annum. Queries emailed to other leading producers—Kribhco, Coromandal International Ltd, Zuari Farm Hub, Deepak Fertilisers, Yara fertilisers—Department of Fertilizers and Department of Agriculture and Farmers Welfare on 21 July, remained unanswered at the time of publishing. Rajib Chakraborty, national president, Soluble Fertilizer Industry Association (SFIA), said, 'Until recently, India lacked the technology to produce two of the most essential WSF (water-soluble fertilizer) grades, Mono Ammonium Phosphate (MAP) and Calcium Nitrate alongside other important grades. Addressing this gap, Ishita International has developed an integrated process, Indian raw material based technology, capable of producing MAP, liquid Calcium Magnesium, Calcium Nitrate, Calcium nitrate with Boron and several other WSFs in a single process." The pilot plant for this project is currently under commissioning, with support from the government. "This start-up is technologically equipped with an integrated Water-Soluble Fertilizer (WSF) production capacity of 10,000 tonnes of MAP and an additional 5,000–7,000 tonnes of other compound WSFs. The company is currently exploring investment opportunities to scale up commercial production and scale up quickly to fill the supply chain gap," said Yogesh Chavhan, business development-manager, WSF, at Nagpur-based Ishita International. Meanwhile, producers of NPK formulations are operating at full capacity but are facing challenges due to a limited availability of raw materials. This is largely because basic WSFs themselves serve as key inputs for these formulations. Despite the constraints, these developments have opened new avenues for indigenous production and present a significant export opportunity to neighbouring countries, according to Rajib. Specialty fertilizer segment comprises various categories, including water soluble fertilizers, sulphur products, micronutrients and liquid fertilizers. "Demand for specialty fertilizers has been estimated to be around 1.2-1.3 million tonnes annually, as in FY25. Among the major categories, micronutrients has the largest share of ~50-55% in total specialty fertilizer consumption followed by WSF (~25-30 %), sulphur (approx. 12-15%) and liquid fertilizers," said Pushan Sharma, director, Crisil Intelligence. In 2022, the specialty fertilizers market in India was valued at approximately $1.46 billion, while the overall fertilizer market stood at around $40.5 billion in 2023. According to industry stakeholders, specialty fertilizers account for only 3% to 5% of the total fertilizer market. There is no subsidy part involved in specialty fertilizers. India is significantly dependent on raw materials and finished specialty fertilizers from China, Russia, Norway, Tunisia and Morocco. India's dependency on imports varies across different specialty fertilizer categories. "For Water Soluble Fertilizers (WSF), the country is heavily reliant on imports, lacking significant production capacity due to the products being blended mixtures of various chemicals that are not readily available in India," said Pushan. The production process for water-soluble fertilizers in India primarily involves blending, with some grades undergoing micronutrient fortification, but without chemical reactions. As a result, India remains dependent on imports of various water-soluble fertilizer grades to manufacture other fortified grades. In the case of Sulphur, India's dependency on imports is medium to high, with companies such as Coromandel International Limited, Deepak Fertilizer, and National Fertilizers Limited relying on molten sulphur from Middle Eastern countries for sulphur production, according to Crisil Intelligence. For High-Value Micronutrients, the dependency on imports is moderate, as some key raw materials, including EDTA di-sodium, and finished goods like Di Sodium Octa Borate Tetra Hydrate, are largely imported. According to Crisil, the water-soluble fertilizer category is expected to experience production disruptions due to India's historical reliance on China for raw materials and finished goods. Specifically, products like MAP (Mono Ammonium Phosphate) and CN (Calcium Nitrate) have been largely imported from China, which offered optimal quality and pricing, although alternative sources are available. 'Following China's imposition of an export ban on specialty fertilizers, industry experts report a substantial increase of approximately 50-60% in the shipment cost of Calcium Nitrate from other countries. Moreover, China is reportedly exporting these products to other nations, which are then being trans-shipped to India, resulting in higher costs and longer lead times," informed Pushan. According to SFIA, nearly every fertilizer company in India is engaged in trading, repacking and selling specialty fertilizers, yet very few are actual producers. The market is dominated by traders due to regulatory limitations and the absence of indigenous technologies, which have historically prevented the domestic manufacturing ecosystem particularly MSMEs from scaling up. As a result, despite rising demand, Indian production capacity has remained restricted. However, some of the emerging entities and startups have demonstrated strong potential for rapid growth and expansion in this segment. Their innovation, agility, and production readiness position them well to lead the next wave of self-reliant, Make-in-India development in the specialty fertilizer space. When asked whether the production can be scaled instantly, Rajib said, 'Scaling production is possible where there is already an unutilized capacity. It does not apply where there is no technology and very basic level of production activity is performed. Whether importing product or importing technology, dependency on external sources remains the same. Government is rightfully investing in 'Import Substitution' through promoting 100% indigenous technology. The country that holds the know-how to scale efficiently and sustainably owns the market, regardless of who first developed the idea and it's happening in India now."
Economic Times
18-07-2025
- Business
- Economic Times
Dependent on China, drowning in red tape: How a broken policy regime is killing India's small fertiliser manufacturers
iStock India imports roughly 20% of urea, 50-60% of DAP, 80% of specialty fertiliser, and 100% of MOP. Small is beautiful—but not always. Take the micro, small, and medium-sized enterprises (MSMEs) in India's fertiliser industry, for instance—more specifically, the smaller units engaged in the manufacturing of specialty fertilisers. Many of them are even on the verge of collapse as they grapple with mounting pressure from rising imports, regulatory burden, and high input costs. India, an agricultural-dependent economy, relies significantly on imports to fulfil its fertiliser needs, even though domestic production has increased to 503.35 lakh tonnes in 2023-24 from 425.95 lakh tonnes in 2019-20. And its top suppliers are China, Russia, Saudi Arabia, Oman, and the US. According to industry sources, the country imports roughly 20% of urea, 50-60% of DAP (Di-ammonium Phosphate), 80% of specialty fertiliser, and 100% of MOP (Muriate of Potash). Additionally, it also imports other fertilisers like NPK compounds and raw materials like phosphate rock and sulphur for DAP production. Recently, China, which accounts for nearly 80% of India's specialty fertiliser imports, imposed restrictions on exports. It has also suspended export permits for DAP since mid-2023. For India, this is a chance to augment its domestic capacity and become self-reliant in fertiliser. While the disruption in imports has highlighted the vulnerabilities in the supply chain, the 'ongoing preference for imports' in policy frameworks, as per local manufacturers, has impeded the growth of India's domestic specialty fertiliser players. According to them, subsidies and preferential trade rules for imported fertilisers have created an uneven playing field. According to industry estimates, India imported 150,000-160,000 tonnes of specialty fertilisers during the June-December 2024 period, with China supplying 70-80%. Although specialty fertilisers represent a small percentage of overall demand, their popularity is rapidly increasing, as they offer customised nutrient delivery that caters to specific crops, soil types, and growth stages. They improve crop yields and quality while minimising ecological impact by increasing nutrient use efficiency and reducing nutrient losses to the environment. Rajib Chakraborty, President, Soluble Fertilizer Industry Association (SFIA), says, 'The specialty fertilisers, particularly water-soluble fertilizers (WSFs), began to make inroads into the Indian market in the late 1990s. The real momentum in adoption and commercialisation of WSFs came in the early 2000s, when states like Maharashtra emerged as early adopters. And its adoption has increased by 20-30% over the years.' Specialty fertilisers include water-soluble fertilisers (WSFs), liquid fertilisers, micronutrient fertilisers, nano fertilisers, bio-stimulants, and organic formulations. While the big players in the country are focused on the production of major fertilisers like urea, DAP, MOP, and NPK, the specialty fertiliser segment is primarily led by MSMEs. While demand, especially for specialty fertilisers, is rapidly rising, the growth of India's domestic fertiliser production has been sluggish. Experts and industry stakeholders assert, among other things, that policies favouring imports have put local manufacturers at a disadvantage. 'No licenses are required for foreign suppliers,' as per the current regulations. 'An importer can simply submit a scanned letter to add the source, which allows them to sell across all operational states without facing the additional regulatory burdens of the Fertiliser Control Order (FCO),' says Rajib Chakraborty of SFIA; in contrast, an Indian manufacturer must navigate complex regulatory requirements, which include obtaining multiple licenses, maintaining offices, and setting up warehouses in each state where fertiliser is Rules, Small PlayersFor MSMEs, these are huge asks and not sustainable. Even though large manufacturers are subject to the same regulatory framework as smaller ones, their experience often differs due to scale advantages, according to Suhash Buddhe, Vice President, Vidarbha Industries Association. They can 'more easily navigate and comply with regulations due to their size and resources,' he says. MSMEs voice their grievances about the stringent FCO rules. They believe that their small size, which usually means selling goods worth around Rs 1 crore in a state, limits their operational flexibility. On the other hand, large companies with sales of Rs 100-200 crore can use warehouses to directly import and store consignments, thus bypassing certain regulatory hurdles that smaller units struggle with. Buddhe says, 'Many prefer imports over 'Made in India' products, not because of quality or price but due to complex regulatory hurdles and the inability of Indian SMEs to maintain licenses across multiple states. Even public sector undertakings (PSUs) are no exception.'ET Digital reviewed a PSU's tender for soluble fertilisers, which stipulated bidders (manufacturers/traders) to have an authorisation certificate for selling products in the applied state(s). The tender document specifies this condition. 'Similar cases have been observed in Government e-Marketplace (GeM) and direct tender invitations. Many PSUs are not floating the tenders through GeM, which promotes locally manufactured products. They are floating open tenders,' says Chakraborty. A senior official from the agriculture department states that the government is actively working to promote ease of doing business nationwide. Since fertiliser is a concurrent subject, many states have streamlined their systems, with ongoing efforts to further enhance the process, he notes. Meanwhile, Devesh Chaturvedi, Secretary, Agriculture & Farmers Welfare, says, 'There is always a scope for improvement.' Former Union Minister Suresh Prabhu acknowledges the difficulties faced by small fertiliser companies, especially in terms of compliance. 'Fertiliser companies face numerous issues, many of which are legitimate and require immediate attention,' says Prabhu. ET Digital attempted to contact officials in the concerned department through email and phone calls for this report; however, no response was received by the time the story was published. State officials overseeing fertiliser and agriculture departments declined to comment when contacted by phone. Some officials acknowledged the issue of over-regulation impacting SMEs but refused to provide further details. Although there has been no official response on this matter, experts and stakeholders point to structural issues in the regulatory framework. 'Regulatory framework is outdated' The FCO was enacted under the Essential Commodities Act, 1955, to regulate the quality of fertilisers and their distribution, particularly to facilitate the effective delivery of government subsidies and promote domestic production. Since then, the FCO, which is jointly administered by central and state authorities, has undergone several amendments. However, it has struggled to keep pace with the changing requirements of India's domestic agriculture, according to experts. They say the framework is outdated today, reflecting remnants of the 'Inspector Raj' and 'License Raj' Kedia, Banking Committee Chairman and former President of the Federation of Indian Micro and Small & Medium Enterprises (FISME), notes that fertilisers today are vastly different from those in 1985. 'The fertiliser list initially included basic nutrients like nitrogen, phosphorus, and potassium (NPK), primarily urea and DAP. Over time, it has expanded to include secondary nutrients like magnesium and calcium, along with micronutrients such as zinc and boron, making the regulatory framework more complex and wide-ranging,' he explains. With over 100 fertilisers currently listed under the FCO, along with countless mixtures of macro- and micro-nutrients, the current framework seems overly complex, says Kedia. 'Given the varying conditions across large states like Rajasthan or diverse regions like Andhra Pradesh, a label claim system could be more practical, he suggests. This, he argues, will empower industry while enabling 'consumers to make informed decisions based on specific nutrient requirements.' According to FCO rules, an SME involved in fertiliser needs to register separately in each state where it wants to operate. 'A few years ago, an initiative was launched to create a common portal for fertiliser manufacturers to register and operate nationwide. However, the effort reportedly didn't succeed, and the project ultimately fizzled out,' notes Kedia. Experts and stakeholders point out that the FCO bestows considerable authority upon individual inspectors, enabling them to suspend or shut down operations at their discretion. Experts point out that since fertiliser falls under the Essential Commodities Act, various departments may oversee it, depending on the state. 'In some cases, a single manufacturing unit may face oversight from as many as 32 inspectors, with the actual number on the ground often exceeding official records,' says Buddhe. From central government officials, such as the Deputy Director of Agriculture, Central Insecticide Inspector, Central Fertiliser Inspector, and Plant Protection Officer, to state government officials, such as the Chief Quality Control Officer, Chief Inspector (Seed), Deputy Director (Fertiliser), Technical Officer (Fertiliser), and Technical Officer (Insecticide), oversee the operations of fertiliser units. At the grassroots level, the Taluka Agriculture Officer adds yet another level of scrutiny. Additionally, flying squads from the Department of Agriculture conduct sudden inspections, he notes. 'This (several levels of inspection) fragments operations and increases compliance costs by 30-40% for MSMEs. Small manufacturers spend Rs 3-5 crore annually on compliance, equivalent to 20% of their R&D budgets, making innovation unsustainable,' adds Buddhe. A Punjab-based fertiliser SME's promoter admitted that his company incurred huge expenses to obtain licenses, maintain quality control systems, and meet the specific packaging and labelling requirements of FCO. 'We have experienced a significant surge in costs over the years, and increasing input costs have further exacerbated the situation,' he says. 'The plethora of complex and uncertain rules and regulations is creating a challenging environment for small fertiliser manufacturers in the country,' says another SME based out of Uttar Pradesh. Suresh Prabhu states that in 1999, during his tenure as the Minister for Fertilizers, a new policy was launched to address the industry's issues arising from excessive regulations, with the ultimate goal of phasing out the ministry itself. 'With the advancements in logistics and digital technologies enabling timely compliance, I believe it's time to revisit and update the fertiliser policy that was drafted in 1999. A new policy is overdue,' Prabhu says. However, regulation isn't the only challenge for fertiliser MSMEs in the country; they also deal with a skewed subsidy structure that favours larger companies, says Kedia. 'The current subsidy structure favours large manufacturers, giving them an uneven advantage. They receive subsidies on products with added micronutrients like zinc and boron. However, smaller players selling standalone micronutrient products don't get similar subsidies, putting them at a disadvantage.' After overcoming these initial hurdles, fertiliser MSMEs confront further challenges related to quality control for their smooth operations. Quality control The 2011 paper 'Fertilizer Quality Control in India: The need for a systemic change' by Sumita Kale and Laveesh Bhandari, published by FISME, stands out as one of the very few comprehensive studies on this topic. It highlights excessively strict tolerance limits and inadequate testing methods, especially for micronutrient fertilisers, as pressing concerns. The paper indicates that there are limited testing labs, which are poorly equipped and understaffed; additionally, it notes that sampling procedures are defective, all of which together undermine the accuracy and credibility of problems remain unresolved to this day, according to experts and stakeholders. The Central Fertiliser Quality Control & Training Institute (CFQCTI), Faridabad, has 'no information' on registered fertiliser dealers across the country, as per the RTI response received by ET Digital. Additionally, there was no definite number provided for fertiliser samples analysed and found non-standard in the last five years. Experts say that, despite increased capacity, testing labs are still unable to manage the minimum required samples, indicating a shortage of full-time inspectors. To maintain testing standards, the central government, however, established the National Accreditation Board for Testing and Calibration Laboratories (NABL), which accredits testing labs. Under the FCO, only 'approved' labs can conduct tests. Chakraborty highlights that most state laboratories fail to meet testing standards, with less than 5% being NABL-accredited. He recommends setting a strict deadline for NABL accreditation, requiring states to comply within a set timeframe, and not using non-NABL lab reports for criminal action against SMEs. 'We have increased the sanction of money to states for NABL accreditation of laboratories. We are actively addressing these issues,' says Agriculture Secretary Chaturvedi. Currently, there are 84 operational Fertilizer Quality Control Laboratories in India, including the four set up by the Central Government—the Central Fertilizer Quality Control & Training Institute, Faridabad, and its three associated regional laboratories. 'One nation, one license' To streamline operations of fertiliser units, Rahul Mirchandani, President of the Indian Micro-Fertilizer Manufacturers Association (IMMA), suggests a single licence for the entire country. 'With 'one nation, one license,' the FCO regulations should align with tax regulations, allowing businesses to bill and operate nationwide without state-specific constraints. This would eliminate the need for redundant licenses and reduce overhead costs,' says Aries Agro's, Chairman, believe key reforms are necessary to reduce import dependency, including limiting inspectors' powers and removing non-subsidised fertilisers from the Essential Commodities Act. They argue that stringent regulations, where minor lab errors can lead to jail time, create excessive fear among manufacturers and importers. Associations also demand a centralised portal for fertiliser. 'A centralised, pan-India licensing framework with a single-window digital compliance portal can reduce friction for manufacturers. Importers should also align with similar documentation and regulatory standards to ensure a level playing field. Additionally, creating a dedicated Department of Fertiliser and Agriculture Department liaison cell and encouraging PSUs to allocate a percentage of tender volumes to Indian small-scale manufacturers,' says Abhishek Wadekar, Founder & Chairman, Tradelink senior government official agreed that a central portal for fertiliser manufacturers to register and operate across the country would be beneficial. To promote local fertiliser production, stakeholders are calling for clearer clause definitions and less regulation. They suggest distinguishing between 'spurious' (intentional adulteration) and 'deficient' (unintentional nutrient deficiency). Currently, even a 0.1% deviation beyond tolerance limits can lead to spurious labelling and criminal prosecution. Standardising documentation across states is also a priority for them. Wadekar proposes addressing this gap through measures like harmonised compliance, centralised registration, and support mechanisms. Nishant Kanodia, Chairman, Matix Fertilisers and Chemicals, suggests adopting a risk-based, digital-first compliance model from other sectors could be beneficial since it would focus inspections on high-risk areas and simplify procedures for manufacturers with a good compliance track record.
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First Post
26-06-2025
- Business
- First Post
From magnets to fertilisers: China's new trade weapon hits Indian farms
After blocking supplies of rare earths, China has blocked supplies of specialty fertilisers to India, which has led to shortage and rise of fertiliser prices in India. read more A drone view shows a cargo ship and shipping containers at the port of Lianyungang in Jiangsu province, China October 17, 2024. (Photo: Reuters) After blocking rare earths' supplies to India, China has now blocked the supply of specialty fertilisers to India, according to a report. Earlier this month, it emerged that even though China had resumed the exports of rare earths to rest of the world on licence-basis, no licences were being issued to India . The halt in supplies posed a substantial threat to India's automobile industry that depends on Chinese rare earth supplies, particularly magnets. STORY CONTINUES BELOW THIS AD The Economic Times has reported that China has halted specialty fertilisers' shipments to India for two months. These fertilisers are used in the cultivation of fruits, vegetables, and other remunerative crops. China has not blocked such shipments to any other country. Notably, the blocking of rare earths and fertilisers has come at a time when India and China are working to improve their relationship after reaching an understanding for partial disengagement in the standoff in Ladakh last year. The two countries have just resumed the Kailash Mansarovar Yatra and are under talks to resume direct flights. Indian imports from China down 80% Indian imports of specialty fertilisers from China are down up to 80 per cent, according to Rajib Chakraborty, the President of Soluble Fertilizer Industry Association (SFIA). 'China has been restricting suppliers of specialty fertilisers to India for the last four to five years. However, this time it is a complete halt,' Chakraborty told ET. A separate report in the newspaper said that farmers are reporting shortages and increase in prices for fertilisers like Diammonium Phosphate (DAP), which is used widely in rabi crops like wheat, pulses, and mustard. 'India's import of DAP from China fell drastically by nearly 75 per cent in the first half of FY25 from corresponding period last year,' Richa Bagaria, Associate Director, CareEdge Ratings, told ET. STORY CONTINUES BELOW THIS AD As a result, farmers in states like Punjab, Haryana, and Uttar Pradesh, have reported shortages of the fertiliser and have said they are forced to pay Rs 250-350 more for a bag of fertiliser, according to the newspaper. Is it about 'PN3'? In its report, the ET mentioned that the blocking of supplies industrial essentials like rare earths and fertilisers has come amid India's block on direct investment from China under 'press note 3'. India issued press note 3, commonly called PN 3, in 2020 that essentially blocked all investments from China unless approved by the Union government. The PN 3 was issued during the India-China conflict in Ladakh in 2020 when China mounted incursions in India. Over the past year, the government has said that there was no plan to relax the provisions. 'I cannot blindly receive foreign direct investment (FDI) because I want money for investment, forgetful or unmindful of where it is coming from…'We want business, we want investment, but we also need some safeguards, because India is located in a neighbourhood that is very, very sensitive,' said Union Finance Minister Nirmala Sitharaman in October 2024.
Time of India
26-06-2025
- Business
- Time of India
China plays hardball! After choking rare earth magnets supply, China blocks important agriculture-related shipments to India; continues exports to others
Chinese officials are avoiding inspection of India-bound consignments. (AI image) China has stopped exports of specialty fertilisers to India over the past two months, whilst continuing to supply other countries, according to senior executives at major importing firms. For India, these fertilisers are crucial for enhancing yields of fruits, vegetables and other profitable crops. The Chinese authorities require inspection of factory shipments. Sources familiar with the situation told ET that Chinese officials are avoiding inspection of India-bound consignments, effectively blocking exports through procedural means rather than an explicit prohibition. The technological capability to manufacture speciality fertilisers is currently absent in India, as historically low volumes have made local manufacturing facilities financially unfeasible. This development occurs amid growing diplomatic strains between the nations over the last five years, marked by border conflicts and China's alignment with Pakistan. China blocks fertilizer shipments to India Approximately 80% of India's requirements for these chemical inputs come from Chinese sources. "China has been restricting suppliers of specialty fertilisers to India for the last four to five years. However, this time it is a complete halt," Rajib Chakraborty, president, Soluble Fertilizer Industry Association (SFIA) was quoted as saying. China has implemented restrictions on exporting crucial materials like rare earth magnets, seemingly in response to imposed tariffs and other limitations. For countries sharing a border with India, government authorisation is required for investments, a measure specifically targeting its northern neighbour. China Blocks Speciality Fertilizers Exports To India Industry data suggests that India's typical imports of specialty fertilisers amount to 150,000-160,000 tonnes during the June-December period. Non-subsidised soil nutrients, known as specialty fertilisers, include various categories including water-soluble fertilisers (WSFs), liquid fertilisers for foliar and fertigation, controlled release fertilisers (CRFs), slow-release fertilisers (SRFs), micronutrient fertilisers, fortified fertilisers, customised fertilisers, nano fertilisers, bio-stimulants, organic and other value-added and innovative fertilisers. Speciality fertilisers provide enhanced crop production, maintain soil quality and ensure efficient nutrient utilisation, whilst reducing negative effects on the environment when compared with conventional fertilisers. Also Read | Reducing acute dependence, countering China's near monopoly: India readies Rs 5,000 crore scheme for rare earth minerals According to the Fertilizer Association of India, the Indian micronutrient fertiliser market is projected to surpass $1 billion by 2029, growing at a CAGR of 9.2%. The FAI also forecasts that Indian biostimulants will reach $734 million by 2029, with a CAGR of 15.6%, whilst the organic fertiliser sector is expected to expand to $1.13 billion by 2032, showing a CAGR of 7%. Leading fertiliser organisations including Deepak Fertilizers, Paradeep Fertilizers and Nagarjuna Fertilizer Company are active participants in this market segment. "Specialty fertilisers are now replacing primary fertilisers, thereby increasing their consumption volume," Chakraborty said, adding that a large number of companies are now interested in setting up manufacturing units. Also Read | India bleeds Pakistan dry: Water at 'dead' levels in Pakistan's dams; bigger Indus river plans in the works - top points to know India has the option to look at additional sources for importing these agricultural inputs. "While alternative destinations such as Jordan and Europe can be explored, the challenge is to land these chemicals in time," said a senior official of a multinational fertiliser company. Whilst standard fertilisers like urea, diammonium phosphate (DAP) and muriate of potash (MOP) serve general agricultural needs, speciality fertilisers provide precise nutrient delivery systems tailored to particular requirements. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
