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Fertilizer Production India's Ministry for Chemicals and Fertilizer Defends Gas Subsidiaries

Editor: Dominik Stephan

India's Ministry for Chemicals and Fertilizer defends the subsidiaries for natural gas for the production of potassic and phosphatic (P&K) fertilizers. By the end of 2011, voices were raised in India to cut supplies for P&K fertilizers in favour of urea production.

(Picture: Wikimedia)
(Picture: Wikimedia)

New Delhi/India – The Indian Ministry of Chemicals and Fertilizer defends subsidiaries of natural gas supplies for the production of potassic and phosphatic (P&K) fertilizers. An exit of this cheap gas programme could, says the Ministry, lead to closure of fertilizer plants in India and increase the dependence on foreign products.

"In case domestic gas is not available to P&K plants, they will be forced to buy gas at spot prices of about US $ 16-18 per million metric British thermal units (MMBTU), which could lead to high input costs," the Fertilizer Ministry states in a recent note. In December 2011, the country's oil ministry had made a proposal to concentrate subsidiaries and efforts on the urea production, putting an end to cheap gas supplies for P&K fertilizers.

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