National Seminar on Fertigation Hotel Surya Palace, Vadodara, Gujarat

Transcription

1 National Seminar on Fertigation Hotel Surya Palace, Vadodara, Gujarat Water Soluble Fertilizers in India: Status & Issues Ajay Bhartiya Marketing Director (S E Asia) Hebei Monband Water Soluble Fertilizers Co. Ltd. China ajay.bhartiya@jitainy.com

2 Water Soluble Fertilizers (WSFs) WSFs are also called Specialty Fertilizers as it performs specialized action at specific crop growth stage, e.g. Vegetative growth, Grain filling, Color, thickness and shelf life of fruit etc. WSFs are also used for immediate correction of any deficiency in the plants. Globally WSF account for 5-6% of total fertilizer consumption. In India it is less than 0.5%. More than 90% of India requirement is imported. More than 1000 different grades of WSF used globally. Average MRP of WSF in India is around Rs /kg.

3 WSFs : Uniqueness 100 percent Water Soluble, no inert matter. High purity of nutrients. Nutrients in readily available form. Free from Sodium and Chloride. Low salt index, EC = ( ) ph acidic (5.5 to 6.5) Applied as Fertigation and Foliar. Customized to Crop & Stage requirements. Single application for all nutritional requirement. Improve crop yields & quality of produce Better nutrient use efficiency

4 Nutrient Use Efficiency under irrigation methods 100% Water soluble fertilizers, with low salt & chloride content and high fertilizer use efficiency. Fertilizer Use efficiencies of conventional fertilizers N % P % K-50% This leads to lower return on money spent on per unit of fertilizer, along with increased soil salinity. Source:- IFA, World Fertilizer Use Manual FUE of 80-85%?

5 Uptake of nutrients in plants Plants uptake nutrients in the form of either anion or cation. Anions are negatively charged and cations are positively charged Nutrients Form in which taken up by Nutrients Form in which taken up plants by plants C CO 2, HCO 3 - Zn Zn +2 H H 2 O Mn Mn +2 O O 2 N NH 4+, NO - 3 P H 2 PO -1 4, HPO -2 4 K K + S SO -2 4 Mo MoO -2 4 Cl Cl -1 Fe Fe +2 B B +3 Cu Cu +2 Ca Ca +2 Mg Mg +2 5

6 Country Maize area, ha Maize production, Mt Yield, Mt/ha World ,379, ,066, World ,121,343 World ,319,737 USA 35,359, ,832, Brazil 14,198,496 71,072, China 34,966, ,234, India 8,400,000 21,060, Mexico 6,923,900 22,069, Argentina 3,696,300 21,196,

7 Country Wheat area, ha Wheat production, Mt Yield, Mt/ha World ,489, ,875, World ,417,745 China 24,139, ,580,000 5 India 29,900,900 94,880, Russian Fed. 21,277,900 37,719, USA 19,826,170 61,755, Australia 13,920,140 29,905, France 5,303,300 40,300,800 8

8 Country Rice area, ha Rice production, Mt Yield, Mt/ha WORLD 163,199, ,738, India 42,500, ,600, China 30,297, ,285, Indonesia 13,443,443 69,045, Bangladesh 11,553,452 33,889, Thailand 12,600,000 37,800, Viet Nam 77,533,163 43,661,

9 Nutrient Consumption among the Asian countries 500 Kg/Ha Kg/Ha India China SriLanka Pakistan Bangladesh

10 Major manufacturers of WSFs Name of the Company Country KNO3 MAP MKP SSOP Blends MgNo3 CaNO3 Haifa Chemicals Limited Israel Monband WSF Co. Ltd. China Duclos International France Vicksburg Chemicals USA Kemira O.Y Finland Nutri S.I. N.V Belgium SCPA France Yara International Norway ICL - Israel Israel SQM Belgium Omnia Nutrilogy SA Tessenedelo Belgium Sesoda Taiwan Approximately 80-85% products are being imported from China

11 ICL Completes Formation of China Phosphate Joint Venture With Yunnan Yuntianhua Oct 12, 2015, 17:02 ET from ICL TEL AVIV, Israel, October 12, 2015 /PRNewswire/ -- - Strategic alliance with Asia's leading producer of phosphates will nearly double ICL's phosphate market share and strengthen its position as the leading specialty phosphate player 1.New joint venture SQM STAR officially launched in China SQM STAR, the joint venture formed by SQM and Qingdao Plant Protection Star Technology Co., Ltd. has officially been inaugurated in Qingdao, Shandong province, China on March 31st. The purpose of this new business alliance is to produce, to distribute and to commercialize soluble NPK Specialty Plant Nutrition solutions in China. SQM STAR offers the Chinese agricultural market perfect crop solutions which are based on SQM's international technical expertise and our ability to create tailor-made products and services for our customers. 2. For Immediate Release SQM SIGNS JOINT VENTURE AGREEMENT WITH MIGAO CORPORATION SQM Los Militares 4290 Piso 6, Las Condes, Santiago, Chile Tel: (56 2) Fax: (56 2) Santiago, Chile, May 20, Yara and China BlueChemical enter strategic partnership Sep 01, 2006 "Our strategic partnership agreement with China BlueChemical and the acquisition of the equity stake in China BlueChemical will give Yara a unique position to further pursue growth opportunities in the world's largest nitrogen fertilizer and chemicals market," says Thorleif Enger, President and CEO of Yara. "The partnership is a win-win for Yara and China BlueChemical that will harness each company's experience and capabilities in nitrogen applications for the development of the Chinese markets. The partnership will create new opportunities for both parties, enable joint investments in competitive nitrate and/or NPK plants, and consequently expand the production, marketing and distribution of mineral fertilizers in the fast growing, high-margin domestic cash crop segment, and establish a platform for new projects in industrial

12 State-wise Market Sizes Market Size State-wise Qty (MT) State Maharastra Gujarat Karnataka Andhra Telangana Tamil Nadu Chhatisgarh Madhya Pradesh Rajasthan Punjab Others Total

13 We started use of WSFs in 1996 with the permission of GoI. From 1998 onwards, different grades started coming in ambit of FCO. Till July 2014, there were 16 approved grades in FCO, although there are more than 1000 grades globally. Globally SF accounts for 5-6% market share but in India it is less than 0.5%. More than 90% of India s requirement is imported.

14 July 2014

15 July 2014

16 Oct 2015

17 Oct 2015

18 FCO (i) 100 % Water Soluble Complex Fertilisers 1. Potassium Nitrate ( ) (i) Moisture per cent by weight maximum 0.5 (ii) Total nitrogen (all in Nitrate form) per cent by weight,minimum 13.0 (iii) Water soluble potassium (as K2O) per cent by weight, minimum 45.0 (iv) Sodium (as Na) per cent by weight, maximum 1.0 (v) Total chloride(as Cl) per cent by weight,maximum 1.5 (vi) Matter insoluble in water, per cent by weight, maximum Mono-Potassium Phosphate ( ) (100% water soluble) (i) Moisture per cent by weight maximum 0.5 (ii) Water soluble phosphorous (as P2O5) per cent by weight, minimum 52.0 (iii) Water soluble potassium (as K2O) per cent by weight, minimum 34.0 (iv) Sodium (as NaCl) per cent by weight, maximum Calcium Nitrate (i) Total nitrogen (Ammoniacal and Nitrate form) per centby weight, minimum 15.5 (ii) Nitrate nitrogen as N per cent by weight, minimum 14.5

19 FCO 2017 (iii) Water soluble calcium (as Ca) per cent by weight, minimum 18.5 (iv) Matter insoluble in water per cent by weight, maximum Potassium Magnesium Sulphate (i) Moisture per cent by weight maximum 0.5 (ii) Water soluble potassium (as K2O) per cent by weight, minimum 22.0 (iii) Magnesium as MgO per cent by weight, minimum 18.0 (iv) Sulphate Sulphur (as S) per cent by weight, minimum 20.0 (v) Total chloride(as Cl) per cent by weight,maximum 2.5 (vi) Sodium (as NaCl), per cent by weight, maximum Mono Ammonium Phosphate 12:61:0 (100% water soluble) (i) Moisture per cent by weight, maximum 0.5 (ii) Ammoniacal nitrogen per cent by weight, minimum 12.0 (iii) Water soluble phosphorous (as P2O5) per cent by weight, minimum 61.0 (iv) Sodium as NaCl per cent by weight, maximum 0.5 (v) Matter insoluble in water per cent by weight,maximum Urea Phosphate 17:44:0 (100% Water Soluble) (i) Moisture per cent by weight, maximum 0.5 (ii) Total nitrogen (all in urea form)per cent by weight, minimum 17.0 (iii) Water soluble phosphorous (as P2O5) per cent by weight, minimum 44.0 (iv) Matter insoluble in water per cent by weight, maximum 0.5 (v) Particle size minimum 90 per cent of the material shall be retained between 1mm and 4 mm IS

20 Current Market Scenario Good Impact: New grades are being introduced in the market. Farmers are getting Single Products ; saving in cost. Adverse Impact: There is a confusion in the market.???

21 Old Specs of NPK 19/19/19 NPK 19:19:19 (100% Water Soluble) Total nitorgen per cent by weight, minimum 19.0 (i) Nitrate nitrogen per cent by wiehgt, maximum 4.0 (ii) Ammoniacal nitrogen per cent by weight, minimum 4.5 (iii) Urea nitrogen per cent by weight, maximum 10.5 Water soluble phosphates (as P2O5) per cent by weight, minimum 19.0 Water soluble potash (as K2O) per cent by weight, minimum 19. Sodium as NaCl per cent by weight on dry basis, maximum 0.5 Matter insoluble in water per cent by weight, maximum 0.5 Moisture per cent by weight, maximum 0.5

22 Different Composition of NPK 19/19/19 Supplier %Urea %AN %MAP %PN %SOP %ME Haifa SQM Most Cos HI Feed Xiamen Others

23 NPK (Formula 1) Product Weight Cost Nitrogen P2O5 K2O (gm) Ammonia cal Nitrate Urea % % % % % % Ammonium % TOTAL Rs 4.72% 4.00% 10.50% 19% 19.22% % Total Rs36.07 Labour cost, Packing Cost,electricity cost & Taxes are extra

24 NPK - 19:19:19(Formula 2) Product Weight (gm) Price Nitrogen P2O5 K2O Sulphur Ammoniacal Nitrate Urea MAP 311 =.311* % % Urea 320 =.320* % PS 369 =.369* % 6.6% TOTAL Rs 3.72% 15.3% 19% 19% 6.6% Labour cost, Packing Cost,electricity cost & Taxes are extra (AS PER NEW SPECIFICATION FCO BOOK FEB-2017) Sub. Urea Rs30/=

25 NPK - 19:19:19 (Formula 3) Product Weight (gm) Price Nitrogen P2O5 K2O Ammoniacal Nitrate Urea MKP 365 =.365* % 12.4% AN 360 =.360* % 6.12% PS 125 =.125* % Urea 150 =.150* % TOTAL Rs 6.12% 6.12% 7% 19% 19% Labour cost, Packing Cost,electricity cost & Taxes are extra Ammonium Nitrate is not allowed. Sub. Urea Rs48/= (AS PER NEW SPECIFICATION FCO BOOK FEB-2017)

26 NPK - 19:19:19 (Formula 4) Product Weight (gm) Price Nitrogen P2O5 K2O Ammoniacal Nitrate Urea MAP 311 =.311* % % --- AN 155 =.155* % 2.72% PS 104 =.104* % Urea 130 =.130* % PN 300 =.300* % 13.81% TOTAL Rs 6.44% 6.72% 6% 19% 19.01% Labour cost, Packing Cost,electricity cost & Taxes are extra Ammonium Nitrate is not allowed. Sub. Urea Rs40.5/= (AS PER NEW SPECIFICATION FCO BOOK FEB-2017)

27 NPK - 19:19:19(Formula 5) Product Weight (gm) Price Nitrogen P2O5 K2O Ammoniacal Nitrate Urea MAP 311 =.311* % % --- PN 423 =.423* % % Urea 170 =.170* % AS 96 =.096*15 2% TOTAL Rs 5.72% 5.5% 8% 19% 19.01% Labour cost, Packing Cost,electricity cost & Taxes are extra Sub, Urea Rs38.5/- (AS PER NEW SPECIFICATION FCO BOOK FEB-2017)

28 With the new drivers; expected changes are Increase in acreage under drip irrigation system. Likelihood of DBT on subsidized fertilizers. WS-NPKs will become crop & area specific. WSF can be blended with MNs. Market of MNs will get merged with WSF. WSFs can be blended with Humic/Amino Acids? 19/19/19, which is becoming commodity, will see new light of the day. Product designing will become key of success.

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30 P & K Huge Potential

31 Way Forward Entry-Level Check: Check Sub-Standard material from entering India. Quality Report from accredited laboratories. Clarity on Customs Duty: MKP & CN. (Performance Bond). Unnecessary farmers are paying more. New Products: Calcium-Magnesium Nitrate or Magnesium Nitrate are attracting are being allowed in Chapter 29. Subsidized Urea: Allow subsidized Urea for making blends. Develop Production Capacities: MAP (Phos Acid & Ammonia) and CN (Nirtic Acid & CaO). State Governments: To include WSF in PoP. Advise KVKs to include in extension services.

32 Thank You