Towards self-sufficiency in Urea Production

 From long time this is a matter of discussion that if government keeps urea production and import below the demand then farmers will use urea under a limit. But why no one can understand the complication that keeping less stock is not solution to use of urea by farmers. Because those farmers who have money will certainly buy the urea as much as he requires. Keeping low stocks as per requirement will leads to BLACK marketing. Till 2014 there were huge urea crises prevailed in market, and it was always sold above M.R.P. as black marketing.

To curb the excess use of urea by farmers government can withdraw the Urea subsidy. If this happens then prices of urea will shoot up. Then this can do some role.  Increase in prices of a commodity or a product may only limit its use.

 But here one think is important to note that farmers are not using urea as more as government predicts. The farmers are cautious enough to see the impact of high urea doses. Almost all the farmers are aware not to apply urea in excess quantity.  But in case of urea, governments were keeps on focusing to make lower the stocks of urea in country. but this situation was generated complication in farmers community as trading and selling happened urea and also other fertilizers as Black marketing.

 The previous governments were also keeps cap on the urea production for urea manufacturers plants.  This shows that how governments were not interested in solution of a problem. Unfortunately they keep on maintaining the situation as it is.  

So till 2014 the urea crisis was prevalent through the country. In Modi government, the manufacturers gets rights to produce urea as much as they can.

 Before 2014 only 30 % of urea was allowed for neem coating. This was also a case that governments were deliberately creating the problems. But in the current government they directed companies to make 100% neem coating of all urea.

 Before 100% neem coating the urea was used in the different factories for non agriculture purpose. Urea has different grade for the industrial and agricultural purpose. The urea for the industrial purpose is not subsidized so its cost is more than double than urea for the agriculture purpose. So misuse of the subsidy was also a part and agriculture grade urea was used in considerable amount by other industries such as ply wood manufactures and many more. Urea without neem coating was also used by the synthetic milk traders, or we can say it was used for adulteration.  By neem coating the urea for the agriculture could not be used in industries and also not by milk mans.

Till date urea is being imported along with domestic production with some restrictions. Now in the country several urea plants are getting revived as in Gorakhpur, Uttar Pradesh. Government has decided not to import urea from other countries within five years. Government wants to produce sufficient urea from domestic manufacturers for all its domestic demand. But here government has to give assurance to the manufactures not to delay subsidies because due to subsidy issue private players are not interested to invest in urea manufacturing. Due to subsidies and low profits Tata Chemical Ltd has sold out its plant. To establish a new urea plant it takes minimum three year to become operational. So if government wants to achieve sufficient domestic urea production within five years then they have to give assurance to the corporate players for Gas and easy subsidy claims. Any delay in making these policies, the task of becoming self sufficient in urea production within five years is very difficult.