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Fertilisers      Non urea fertilisers show improvement in consumption  Key points Boost in consumption of non urea fertilisers: In February 2012, the aggregate sales of domestically produced fertilisers (by 15 leading manufacturers) declined by 4% as compared to that in the same period of the previous year. On the other hand, imports spiked up significantly during the month mainly due to the effect of a low base of last year. Import of diammonium phosphate (DAP), complex fertilisers and urea increased by 206%, 1562% and 30% respectively. Overall the consumption of fertilisers in the month of February 2012 has seen a 16% increase on a year-on-year (Y-o-Y) basis. Government has cut non urea subsidy pay out for FY2013: The government has reduced subsidy payout per kg in the range of 10% to 35% for non urea fertilisers on account of a decline in their price of fertilisers in the international markets. The international prices of fertilisers have been seeing a declining trend in the recent period due to decrease in demand and high prices. The government has reduced subsidy payout on phosphorus for FY2013 by 32.6% to Rs21.8 per kg. The subsidy on potash has been reduced by 10.3% to Rs24 per kg and that on nitrogen has seen a reduction of 11.6% to Rs24 per kg. The reduction in the subsidy on non urea fertilisers are expected to bring down the government's total subsidy bill by 20% in the next fiscal.  Consumption of non urea fertilisers increases: During the month of February, the consumption of non urea fertilisers has increased on the back of higher import of DAP and complex fertilisers. The indigenous production of DAP has shown sign of revival as the availability of raw materials, mainly phosphoric acid, has improved. The production of indigenous DAP has improved by 76% in the current month while the import of complex fertilisers - DAP and urea has also improved on the back of better availability. However, consumption is still down on YTD basis: On a year till date (YTD) basis (for FY2012), the cumulative fertiliser sales (including imports and domestic production) have declined slightly due to lower production and lesser import of DAP and muriate of potash (MOP). On a YTD basis, sales of domestically produced fertilisers have seen a marginal to negative growth of 0.8% whereas imports have declined by 7%.

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