According to Indian media reports, the Indian fertilizer companies are now facing increased import costs and the excessive consumption tax levy double dilemma , so the last two years have been more unsure on future imports less imports of Indian fertilizer prices .

In the past four fiscal years , the cost of India's urea imports grew more than 50 %, resulting in the Indian government's fertilizer subsidy gap widened . Due to increasing the supply of low-priced Chinese urea , the impact of global urea prices dropped significantly , from an average of $ 482 per ton in fiscal year 2012 fiscal year 2013 fell to 413 U.S. dollars per ton , from April to October last year, fell further to U.S. $ 360 per tonne . But India's domestic fertilizer consumption increases and rupee depreciation has offset the positive impact of lower prices brought about .

Fiscal year 2014 , the total urea consumption in India will reach 31 million tons , of which about 25% to be imported . Due to the lack of incentives, domestic urea production capacity in India has not been improved, dependence on imports is increasing . Fertilizer subsidies this fiscal year, the central government up to 660 billion rupees , has paid a subsidy arrears last year with one of the 350 billion rupees. The actual subsidy is expected this fiscal year will be higher than the total budget for fertilizer subsidies , subsidies, subsidy arrears will scroll to the budget for the next fiscal year .

In addition , the Indian fertilizer companies are also caught in a dilemma consumption tax . In India , the products consumers enjoy government subsidies become beneficiaries , usually do not have any objection. But Indian fertilizer companies and the government because of tax reasons conflict . India's consumption tax authorities issued a notice to the National fertilizer companies , fertilizer products required to pay excise duty in accordance with the highest retail price rather than a government subsidized prices . Fertilizer companies required by the government to less than the maximum retail price of the product sold to the farmers , then the government will pay in the form of direct fertilizer subsidies to fertilizer companies part of the difference , the amount of fertilizer subsidies in fiscal year 2013 to 2014 up to 660 billion rupees.

In the budget for fiscal year 2011 to 2012 , the government levied a 1% urea consumption tax , would have been a burden on the fertilizer industry is , however, more ominously, the consumption tax authorities but also based on the Fiat 2012 Supreme Court case ruling require fertilizer business in back taxes . Indian Ministry of fertilizers and chemicals and fertilizers Association wrote to the Indian Ministry of Finance of India requires to properly address these problems and propose two solutions , one fertilizer companies Shipping consumption tax , and second, when the tax factor to consider fertilizer subsidies . The case revealed some time before .