Business

Crisil Projects India’s Urea Import Dependency to Fall to 10-15% From 30%

In a positive development, India’s urea industry is now making significant progress towards achieving self-sufficiency.

According to a report by Crisil Ratings, the country’s dependence on urea imports is expected to decline to 10-15% in the near to medium term, down from 30% in the financial year 2020-21.

This reduction is anticipated to be driven primarily by the introduction and stabilization of new production capacities.

It further notes, that these new facilities are projected to achieve steady, regulated returns as their utilization rates improve.

These increased capacity utilization is expected to enhance the operating efficiency and profitability of new plants. Additionally, sufficient subsidy allocations are likely to keep the credit profiles of urea industry companies stable.

Also Read: Zomato Is Buying Paytm’s Entertainment And Ticketing Business For Rs 2,048 Crore- Deets Inside!

Meanwhile, between fiscal years 2007 and 2012, urea demand growth surpassed production. As a result, it led to an increase in import shares to 20-25% of total consumption.

According to Crisil director Anand Kulkarni,  New Investment Policy (NIP) of 2012 has been instrumental in structurally reducing import dependency.

Further, these new plants are projected to operate at full capacity this fiscal year, up from 85-90% in the previous year, with the potential addition of another plant boosting domestic production further.

In future, a rise in the adoption of nano urea could further accelerate India’s path to self-sufficiency. But, as per official data from the Department of Fertilizers, India imported 70.42 lakh tonnes of urea in the fiscal year of 2023-24. As a result, it costed USD 2.608 billion. Thus, reflecting that reduction in urea import dependency still remains critical.

Must Read: IndiGo Introduces Business Class For The First Time In 18 Years

(With Inputs From ANI)

Dikshaa Puri

Recent Posts

PV Sindhu Ties The Knot With Venkata Datta Sai In Udaipur: Exclusive Details And Viral Photos Revealed

PV Sindhu married Venkata Datta Sai in a traditional ceremony in Udaipur on December 22.…

41 mins ago

PM Modi Distributes 71,000 Appointment Letter Via Video Conference

Prime Minister Narendra Modi  on Monday distributed over 71,000 appointment letters to newly appointed government…

41 mins ago

TTD Vision 2047: Big Changes Coming To Tirumala With Smart Roads And AI Chatbots – KNOW HERE!

TTD’s Vision 2047 aims to transform Tirumala into a model pilgrimage hub, focusing on smart…

53 mins ago

BJP Releases ‘Aarop Patra’ Against AAP Govt, Highlights 10 Key Issues

BJP slams AAP over corruption, pollution, and mismanagement in a new chargesheet, while AAP launches…

1 hour ago

Who Is Daniel Duggan? Ex Fighter Pilot Accused Of Training Chinese Military To Be Extradited To US

Australia's Attorney General has confirmed that Daniel Duggan, a former US Marine accused of training…

2 hours ago

Hyderabad Court Grants Bail To 6 Accused In Vandalism At Allu Arjun’s House

Six individuals who allegedly damaged actor Allu Arjun's residence in Hyderabad's Jubilee Hills were granted…

2 hours ago