The Hindu Business Line : Fertiliser export norms eased

THE Government on Wednesday liberalised the export of certain categories of nitrogen, phosphatic and potassic fertilisers, subject to certain conditions. These fertilisers were listed in the restricted category and exports were permitted only under licence.

While urea continues to be in the restricted list with exports permitted under licence, the phosphatic fertilisers whose exports have now been permitted without licence include single super phosphate (SSP — 16% P2O5) in both powdered and granulated form and SSP (14% P2O5) only in powdered form.

Among the NP complex fertilisers, diammonium phosphate (18-46-00) can now be exported by the manufacturers without licence. The other NP complex fertilisers whose export has been liberalised include NP (16-30-0), NP (20-20-0), NP (28-28-0) and NP (23-23-0).

In the case of NPK complex fertilisers, the manufacturers have been allowed to export nitrophosphate potash (15-15-15), NPK (10-26-26), NPK (12-32-16), NPK (14-35-14), NPK (14-28-14), NPK (19-19-19), NPK (17-17-17) and NPK (15-15-15).

For all these categories, export is subject to the condition that the manufacturer will be able to export freely only its own manufactured products along with intimation to the Department of Fertilisers about the quantity of export and a self declaration and a certificate issued by the statutory auditors that no concession/subsidy had been claimed for the intended export. This declaration/certificate will also have to be produced to the customs department at the time of export.

Export of all grades of potassium chloride (muriate of potash — MOP) by direct importers of MOP has also been permitted by the Government out of the imports made during the last six months. This is subject to the condition that they will not claim any concession for the quantity intended for export or they will return the concession if already claimed from the Government. The direct importers who will be exporting MOP will also have to furnish a certificate from the statutory auditors to the Department of Fertilisers and customs department. .

However, the domestic fertiliser industry feels that the move to liberalise export of these fertilisers will not have any significant impact in the immediate future, as the domestic production cost of most of these items is usually higher than the ruling international prices.

Speaking to Business Line, Mr Viren Kaushik, Director-General, Fertiliser Association of India (FAI), said: "I don't foresee much export, except some in SSP and other low nutrient fertilisers. The international situation keeps on changing and so the move provides some flexibility to the producers when the international price is substantially higher than the domestic production cost."

As of now, India has to import rock phosphate and ammonia required to manufacture DAP and the domestic production cost is more than the ruling international price, he said and added that probably, there could be some amount of exports to the neighbouring countries such as Sri Lanka, Pakistan, Bangladesh and Nepal where there is a clear freight advantage.

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