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Indian Farmers Fertilizer Cooperative (IFFCO) has planned to set up a plant in Gujarat. This step will be taken in order to expand the capacity of fertilizer production in the country. The government has also eased the pricing and investment policy for fertilizer by linking urea pricing to import cost. According to company officials, IFFCO has planned to produce another 1.3 million tons (mt) of urea, worth Rs 50 billion. As a result, it decided to expand fertilizer production capacity in Gujarat.
Besides this, IFFCO has planned to invest Rs 12 billion for three phosphate-related ventures in Australia, Senegal and Jordan. Due to previous pricing policy and lack of returns, the Indian fertilizer makers were suffering a lot. The local fertilizer makers were compelled to sell their products at low price. Now after the new pricing policy of the government, Iffco is hopeful of generating profit. India is the second biggest fertilizer user of the world; but it has to import 46 mt of fertilizer every year.
