Monthly D FERTILIZER E Update C - JM Baxi & Co

Monthly FERTILIZERUpdate

DEC20

Port Anlaysis

Fertilizers traffic at Indian Ports (Qty in Million Tonnes)

Fertilizers traffic at Indian Ports- April - October 2020 (Qty in Million Tonnes)

Major Country-wise Fertilizers Imports (Qty in Million Tonnes) Apr- Oct 2020

MAJOR FERTILIZER IMPORTERS (Qty in MILLION TONNES) Apr- Oct 2020

Market Overview And Trends

Highlights

Contents

3Dec 2020 | J. M. Baxi & Co. FERTILIZER Update

Disclaimer: The information contained in this market update is drawn from wide range of newspapers, business and trade magazines,

government, company and industry association websites. While all possible care is taken to verify the correctness and authenticity of

information contained in this compilation, no claim to independent authorship of articles is implied or intended. Readers are expected

to make their own independent evaluation and verification of information for their use. While all information contained in this report

are believed to be correct, the editors of this compilation or J. M. Baxi & Co. do not guarantee the quotes or other data and the same is

provided only in good faith.

www.jmbaxi.com

FERT

ILIZE

R TR

AFF

IC A

T IN

DIA

N P

OR

TS

J. M. Baxi & Co. FERTILIZER Update | Dec 20204 5Dec 2020 | J. M. Baxi & Co. FERTILIZER Update

Fertilizers traffic at Indian Ports (Qty in Million Tonnes)

PORT NAME APR- OCT 2020

APR- OCT 2019 VARIANCE Y - O - Y

ANGRE 0.022 0.000 0.022

BEDI 0.918 0.347 0.571

CHENNAI 0.248 0.084 0.164

COCHIN 0.134 0.134 0.000

DAHEJ 0.260 0.432 -0.172

DHAMRA 0.348 0.209 0.139

DIAMOND HARBOUR 0.037 0.165 -0.128

GANGAVARAM 0.670 0.415 0.255

HALDIA 0.302 0.240 0.062

HAZIRA 1.155 0.469 0.686

JAIGAD 0.170 0.225 -0.055

KAKINADA 2.401 0.633 1.768

KANDLA 2.506 2.290 0.217

KARAIKAL 0.286 0.000 0.286

KARWAR 0.017 0.040 -0.023

KOLKATA 0.008 0.000 0.008

KRISHNAPATNAM 0.875 0.765 0.110

MAGDALLA 0.044 0.000 0.044

MANGALORE 0.507 0.249 0.257

MORMUGAO 0.034 0.028 0.006

MUMBAI 0.215 0.118 0.097

MUNDRA 3.361 2.564 0.797

PARADIP 2.981 2.677 0.304

PIPAVAV 1.219 0.810 0.409

TUNA 0.580 0.327 0.253

TUTICORIN 0.763 0.473 0.289

VISAKHAPATNAM 2.063 1.949 0.114

Grand Total 22.122 15.689 6.433

www.jmbaxi.com www.jmbaxi.com

Fertilizers traffic at Indian Ports- April - October 2020 (Qty in Million Tonnes)

Port Cargo QTY IN MT

ANGRE ROCK PHOSPHATE 0.022

BEDISULPHUR 0.554

UREA 0.364

CHENNAI

MURIATE OF POTASH 0.058

ROCK PHOSPHATE 0.103

SULPHUR 0.010

UREA 0.077

COCHINROCK PHOSPHATE 0.085

SULPHUR 0.049

DAHEJ



UREA 0.074

DHAMRA

DI-AMMONIUM PHOSPHATE 0.115


UREA 0.155

DIAMOND HARBOURDI AMMONIUM PHOSPHATE 0.012


GANGAVARAMMURIATE OF POTASH 0.087

UREA 0.583

HALDIA



SULPHUR 0.047

HAZIRA


SULPHUR 0.031

UREA 0.290

JAIGADROCK PHOSPHATE 0.025

UREA 0.145



KAKINADA

AMMONIUM PHOSPHATE SULPHATE 0.028

AMMONIUM SULPHATE 0.013

DI AMMONIUM PHOSPHATE 0.170


GRANULATED NPK FERTILIZER 0.037


NITOGEN-POTASH 0.062


UREA 0.742

KANDLA

AMMONIUM NITRATE 0.010

AMMONIUM PHOSPHATE 0.044







NITRO PHOSPHATE 0.013


UREA 0.639

KARAIKAL

MURIATE OF DI-PHOSPHATE 0.040


UREA 0.216

KARWAR ROCK PHOSPHATE 0.017

KOLKATA DI AMMONIUM PHOSPHATE 0.008

KRISHNAPATNAM


MURIATE OF DI PHOSPHATE 0.024


NITOGEN POTASH 0.027


NITROGEN PHOSPHORUS POTASH 0.061

UREA 0.478

MAGDALLA UREA 0.044


MANGALORE



N-K-P FERTILIZER 0.030

POLYSULPHATE 0.025

POTASSIUM SULPHATE 0.011


SULPHUR 0.011

UREA 0.214

MORMUGAOMURIATE OF POTASH 0.024

UREA 0.010

MUMBAI


MONO-AMMONIUM PHOSPHATE 0.030


ORGANIC FERTILIZERS 0.053


MUNDRA







NITROGEN PHOSPHORUS SULPHER 0.049


SULPHATE OF POTASH 0.016

UREA 1.000

PARADIP






SULPHUR 0.435

UREA 0.251

PIPAVAV



UREA 0.695

TUNA




UREA 0.453

TUTICORIN







SULPHUR 0.055

UREA 0.138

VISAKHAPATNAM








MOLTEN SULPHUR 0.059






SULPHUR 0.088

UREA 0.187

Grand Total 22.122



Major Country-wise Fertilizers Imports (Qty in Million Tonnes) Apr- Oct 2020

COUNTRIES CARGO APR- OCT 2020

BAHRAIN UREA 0.086

BRAZIL ROCK PHOSPHATE 0.022

BULGARIA AMMONIUM NITRATE 0.012

CANADA




CHINA







UREA 1.826

DJIBOUTI ROCK PHOSPHATE 0.018

EGYPT




MURIATE OF DI-PHOSPHATE 0.040




UREA 0.390

FINLAND UREA 0.157

GERMANYMURIATE OF POTASH 0.031


GREECE AMMONIUM SULPHATE 0.028

INDONESIA







UREA 0.443

IRANAMMONIUM NITRATE 0.012

SULPHUR 0.039

ISRAEL MURIATE OF POTASH 0.344

JAPAN MOLTEN SULPHUR 0.027

JORDAN







KUWAIT SULPHUR 0.063

LITHUANIADI-AMMONIUM PHOSPHATE 0.055


MALAYSIA UREA 0.044

MOROCCO






SULPHUR 0.170

UREA 0.057

NIGERIA SULPHUR 0.019

NORWAY ROCK PHOSPHATE 0.025

OMAN



UREA 1.346

QATARSULPHUR 0.020

UREA 0.186

RUSSIA












SAUDI ARABIA






NITOGEN POTASH 0.027





UREA 0.283

SINGAPORE AMMONIUM NITRATE 0.023

SOUTH KOREA AMMONIUM SULPHATE 0.012

TAIWAN DI-AMMONIUM PHOSPHATE 0.046

TOGO ROCK PHOSPHATE 0.294

TUNISIA SULPHUR 0.020

TURKEYAMMONIUM NITRATE 0.023


U.A.E.



SULPHUR 0.285

UREA 0.253

UKRAINE UREA 0.520


www.jmbaxi.com


www.jmbaxi.com

UNITED STATES


MURIATE OF DI PHOSPHATE 0.024


POLYSULPHATE 0.025

SULPHATE OF POTASH 0.003

UREA 0.046

VIETNAM



UREA 0.096

YEMEN SULPHUR 0.031

MAJOR FERTILIZER IMPORTERS (Qty in MILLION TONNES) Apr- Oct 2020

IMPORTERS APR-OCT 2020

INDIAN FARMERS FERTILISER COOP. LTD. 4.655

INDIAN POTASH LTD. 4.492

CORAMANDAL 1.849

KRIBHCO BHARATI CO OP LTD. 1.529

CHAMBAL FERTILISERS & CHEMICALS LTD. 1.198

PARADIP PHOSPHATES LTD. 0.893

NATIONAL FERTILIZERS CO. LTD. 0.645

INDORAMA CHEMICALS CO. 0.418

RASHTRIYA CHEMICAL & FERTILIZER LTD. 0.404

MOSAIC INDIA PVT. LTD. 0.398

GUJARAT STATE FERTILIZERS CO. LTD. 0.391

HINDALCO INDUSTRIES LTD. 0.299

GREENSTAR FERTILIZERS PVT. LTD. 0.200

IRC AGRO CHEMICALS PVT. LTD. 0.097

FERTILIZERS & CHEMICALS TRAVACORE LTD. 0.092

NARMADA BIO CHEM PVT. LTD. 0.091

STC LTD - A/C. IFFCO 0.090

GUJARAT NARMADA VELLY FERTILIZER CO. LTD. 0.087

INDIAN PHOSPHATE LTD. 0.084

MADRAS FERTILIZERS LTD 0.075

IDL EXPLOSIVES LTD. 0.071

VARIOUS 0.064

SMARTCHEM TECHNOLOGIES LTD. 0.057

JUBILANT AGRI & CONSUMER PRODUCTS LTD. 0.056

KHAITAN CHEMICALS & FERTILIZERS LTD. 0.054

16Jan 2020 | J. M. Baxi & Co. FERTILIZER Update

MA

RKET

OVE

RVIE

W

TREN

DS&

J. M. Baxi & Co. FERTILIZER Update | Jan 202017 J. M. Baxi & Co. FERTILIZER Update | Dec 202017

HIGHLIGHTS

Finance Minister Nirmala Sitharaman announces ₹65,000-cr fertilizer subsidy for farmers

Grasim to sell fertiliser biz to Indorama

02

01

www.jmbaxi.com

Use of nanotechnology for plant nutrients to halve urea usage and raise productivity

Fertiliser industry seeks cut in import duty on non-urea raw materials

04

03

J. M. Baxi & Co. FERTILIZER Update | Dec 202019

The company said the fertiliser business will be transferred to Indorama India on slump-sale basis following a scheme of arrangement. The divestment of the fertiliser business is a value-unlocking exercise for Grasim, and is expected to enable the company to pursue growth opportunities in its core businesses. Grasim plans to invest the proceeds from the sale into its core business of VSF and chemicals. The contribution of fertilizers to Grasim’s revenues is 3.5%, while the same is even less at 1.5% to Grasim’s profit. Grasim Industries MD Dilip Gaur said, “The divestment of the fertilizer business by Grasim is a strategic portfolio choice and unlocks value for the shareholders. It is in line with the strategic thrust of the company to focus on core businesses.” Indo Gulf Fertilisers is known for its Shaktiman brand of fertilizers. Gaur said India Gulf Fertilisers will benefit from synergies and expertise of Indorama’s

existing agri portfolio. Its subsidiaries manufacture fertilizers, polyethylene & polypropylene resins, medical gloves, polyester fibres & resins, spun yarns and cotton fibre. It is the largest producer of urea and phosphate fertilisers in sub-Saharan Africa, the largest producer o polyolefins in West Africa, and the third-largest producer of synthetic rubber gloves in the world. In India, Indorama is a leading producer of phosphate fertilizers, marketed under the brand Paras. Indorama Corporation vicechairman Amit Lohia said, “Shaktiman and the Paras brands will be able to join hands to offer a complete range of products for our farmers including urea, phosphate fertilizers, potash, soil health products, seeds, and crop protection products.” Grasim’s standalone revenues were at about Rs 19,000 crore in fiscal year 2020, while its net profit was at about Rs 1,270 crore

Source: Outlook India

Grasim to sell fertiliser biz to Indorama01

www.jmbaxi.com

Grasim Industries is divesting its fertiliser business — Indo Gulf Fertilisers — to Indorama India for a lump-sum cash consideration of Rs 2,649 crore. The board of directors of Grasim Industries, a flagship company of the $48-billion Aditya Birla Group, approved the divestment.

““

Nirmala Sitharaman said an additional outlay of ₹10,000 crore will be provided for PM Garib Kalyan Rozgar Yojana in the current financial year

“

“Source: The Hindu

Finance Minister Nirmala Sitharaman on November 12 announced a ₹65,000-crore fertilizer subsidy for farmers as part of her stimulus package to boost the economy.

She said ₹65,000 crore is being provided to ensure adequate availability of fertilisers to farmers and to enable timely accessibility of fertilisers in the upcoming crop season. She said an additional outlay of ₹10,000 crore will be provided for PM Garib Kalyan Rozgar Yojana in the

Fertilizer Association of India (FAI) demanded the government to reduce import duty on non-urea fertiliser raw materials an increase it on nished products in the upcoming Union Budget 2021 to encourage domestic production. Currently, import duty on raw materials and nished nonurea fertilizers stands at 5 per cent except for rock phosphate and sulphur which is at 2.5 per cent. “Globally, import duty on raw materials is kept lower than the nished products. But it is not so in our country and as

current financial year. This, she said, will accelerate growth of the rural economy. Ms. Sitharaman further said, ₹3,000 crore will be released to EXIM Bank for promotion of ‘Project Exports’ through lines of credits. EXIM Bank extends lines of credits (LOC) on behalf of the government of India as assistance to developing countries under Indian Development and Economic Assistance Scheme (IDEAS) Scheme

a result we face still competition from imported nished phosphatic (P) and potassium (K) fertilisers,” FAI Director General Satish Chander told reporters. The customs duty at 5 per cent on imported raw materials like phosphoric acid and ammonia and 2.5 per cent on rock phosphate and Sulphur is rendering domestic P&K fertilizer manufacturing uncompetitive vis-a-vis imports, he said. In its budget proposals sent to the Finance Ministry, the FAI has also sought the government to exempt

www.jmbaxi.com

Finance Minister Nirmala Sitharaman announces ₹65,000-cr fertilizer subsidy for farmers

Fertiliser industry seeks cut in import duty on non-urea raw materials

02

03


Source: Economic Times

In its budget proposals sent to the Finance

Ministry, the FAI has also sought the government

to exempt raw materials/

intermediates from customs duty, or,

only a nominal rate of 1 per cent customs duty be

levied.

raw materials/ intermediates from customs duty, or, only a nominal rate of 1 per cent customs duty be levied. Further, there is a need for increasing the rate of customs duty on imported P&K fertilizers to encourage domestic value addition and improving capacity utilization in P&K segment, it said. The industry body also demanded timely refund of unutilized input tax credit and refund against GST on input services to avoid increase in the cost of domestic production of P&K fertilizers Inverted duty structure of GST on ammonia and sulphuric acid is at 18 per cent compared to 5 per cent on fertilizers. Chander said the

FAI sought that there is a need for dierential subsidy for domestic and imported P&K fertilizers besides priority in clearing subsidies on locally manufactured fertilisers. On subsidy, the industry body said there are always massive arrears and even now the payment for April-June quarter is not complete. “But, allocation of Rs 65,000 crore under AatmaNirbhar Bharat should help clear all arrears and make the payment on weekly basis as envisaged in Direct Benet Transfer (DBT) policy the sector,” he added. The government allocated Rs 71,000 crore for fertilizer subsidy in the 2020-21 nancial year

www.jmbaxi.com

The government has approved the use of nanotechnology for plant nutrients, a decision which is expected to halve the use of urea and increase productivity by 15%. “The Central Fertiliser Committee, the regulatory body of fertiliser products, has approved the usage of nano nitrogen after a year-long eld trial. Now nano nitrogen will soon be commercially available to farmers,” said a fertiliser ministry oicial, who did not wish to be identied. “This will help cut our dependence on import. Last year we had imported more than 9 million tonnes of urea.” The approval is initially for three years, which may

be extended after a proper review of its commercial use, said the official. “Since the technology is new, we need to ensure that it has no adverse impact on the environment and human health. W will keep a close watch on the results of this product,” he said. Nano nitrogen is a patent product of IFFCO. It is in liquid form and 500 ml of nano nitrogen is equivalent to a 50 kg bag of urea in its impact The consumption of urea in the country has reached about 35 million tonnes, with 70% manufactured in India. The use of urea puts a nancial burden on the government, which pays more than 70% subsidy on urea to ensure

Use of nanotechnology for plant nutrients to halve urea usage and raise productivity04

www.jmbaxi.com

Source: Economic Times


cheaper fertiliser for farmers. “Since there will be no subsidy on nano nitrogen, the subsidy burden of the government will also ease with nano nitrogen replacing urea usage. The government pays a subsidy of over 50,000 to urea companies,” said the oicial. Fertiliser maker IFFCO had launched eld trials of nano nitrogen last year across 9,000 sites in the country with the support of the Indian

Council of Agricultural Research. According to IFFCO, the cost of one bottle of nano nitrogen will be 240, which is less than a bag of urea costing 266. “We are planning to set up a unit at Kalol, Gujarat, after getting clearance from the ministries concerned. We hope production will start in the rst week of April 2021,” said IFFCO managing director US Awasthi

Now nano nitrogen will soon be

commercially available to

farmers,” said a fertiliser ministry official, who did not wish to be

identified. “This will help cut our dependence on import. Last year we had imported

more than 9 million tonnes of

urea.” The approval is initially for three years, which may be extended after a proper review of

its commercial use, said the official.

Other Reports for December 2020

J. M. Baxi & Co. Monthly Agri Products Update

J. M. Baxi & Co. Monthly Automotive Logistics Update

J. M. Baxi & Co. Monthly Cement Update

J. M. Baxi & Co. Monthly Chemical Update

J. M. Baxi & Co. Monthly Coal Update

J. M. Baxi & Co. Monthly Container Update

J. M. Baxi & Co. Monthly Cruise Shipping Update

J. M. Baxi & Co. Monthly Edible oil and Extractions Update

J. M. Baxi & Co. Monthly Fertilizer Update

J. M. Baxi & Co. Monthly LNG & LPG Update

J. M. Baxi & Co. Monthly Mineral and Metal Update

J. M. Baxi & Co. Monthly Oil and Petroleum Update

J. M. Baxi & Co. Monthly Port Update

J. M. Baxi & Co. Monthly Project Cargo Update

J. M. Baxi & Co. Monthly Seafarers Insights Update

J. M. Baxi & Co. Monthly Steel Update

www.jmbaxi.com

Research Cell

J. M. Baxi & Co.Godrej Coliseum, Off ice No. 801, 8th Floor, “C” wing, Behind Everard Nagar, Off. Somaiya Road,

Sion East. Mumbai - 400022 INDIA.

Telephone: +91 . 22 61077100 | Ext 161/145 | Mobile: + 91 . 7506004224 / 7045659111Email: [email protected] | Website: www.jmbaxi.com

Monthly D FERTILIZER E Update C - JM Baxi & Co

Documents

Transcript of Monthly D FERTILIZER E Update C - JM Baxi & Co