In the new prime minister Narendra Modi under the leadership of the India economy is open round of rapid growth, is expected in 2015 GDP growth rate of 8%~9%. India agricultural and industrial upgrading are needed to improve productivity, India is also facing the problem of ensuring national food security. To this end, the India government will make great efforts to accelerate the development of the chemical fertilizer industry, the agriculture and the fertilizer industry to enhance the synchronization.

The domestic fertilizer production capacity

At present, India 65% of the labor force is engaged in agricultural production, but the contribution to GDP accounted for only 17%. In the mid 90 century India grain production provide for oneself, but because of the India agricultural development is slow and the rapid growth of population, per capita grain yield stagnation. In 2013, India's parliament passed "the National Food Security Act", which aims to provide safe food supply is mandatory for about 67% of India's population.

In order to achieve the goal of food security bill, India must work hard to increase food production (including rice, wheat, coarse grains and beans), from the current 2.63 tons per year in 2020 increased to 3.2 tons. India existing fertilizer production level is very difficult to meet the goal of food security in the country, and the grain yield of India 55%~60% growth is directly attributable to the chemical fertilizer. 1980 to 2000 years, thanks to the policies and measures of India grain production and fertilizer production, synchronous development. After the chemical fertilizer industry in India almost no new investment projects, leading to food production is basically at a standstill.

In order to meet the needs of agricultural production in India in recent years, with an average annual growth rate of fertilizer demand is about 5% to 6%, while the output of chemical fertilizer has. At present, India has become the world's second largest fertilizer consumer, is also the world's third largest chemical fertilizer production in china.

At present a large number of imports

At present, India chemical fertilizer consumption was 140 kg per hectare, compared with other developed countries consumption is still low. According to reports, the 2014 India urea total consumption of about 31000000 tons, the production of about 23000000 tons, nearly 1/4 dependent on imports.

With the development of industry and agriculture in India, urea demand will continue to increase, expected annual increase of about 1000000 tons. At the same time, in order to maintain the sustainable of nitrogen, phosphorus, potassium fertilizer proportion, India needs to import large quantities of potash fertilizer, phosphate fertilizer and compound fertilizer.

In the past 10 years, India chemical fertilizer imports continue to increase. At present, India is the largest importer of the world total output of nitrogen and phosphorus and potassium.

The short term, India imports of raw materials, intermediates and finished fertilizers will continue to increase. Many of the existing urea plant in India have been transformed, and reached the maximum yield, continued expansion more difficult. In order to meet the needs of India chemical fertilizer to 5%~6% average annual growth rate of demand, you must create a new urea production capacity, new capacity put into use before and still need to rely on imports to make up the shortfall.

The government encourages the expansion of investment

At present, the government of India has developed a multi pronged strategy to solve the problem of insufficient supply of chemical fertilizer. On the one hand, increasing domestic urea production. Since 1995, India has no new urea plant investment project, and most of the urea production facilities close to production capacity. To this end, the India government policy, encourage fertilizer producers to increase investment expansion and new urea plant. Due to a shortage of natural gas supply, investment in new production capacity of urea is restricted.

In addition, the India government has tried to satisfy the fertilizer supply by widening the import channels, namely the production units to establish long-term supply contracts with foreign suppliers, the establishment of joint ventures with overseas manufacturers, India enterprises are encouraged to buy overseas assets of chemical fertilizer.

To promote the construction of supporting facilities

The natural gas supply shortage caused great negative impact on the India chemical fertilizer and agricultural development. India gas field production decline and spot LNG high cost will further affect the synthetic ammonia and urea production in the future. The method of solving these problems is the expansion of India's natural gas production and increase the LNG import terminal and regasification centres.

At present, India LNG terminal is running there are 4, are located in the state of Gujarat and Maharashtra Hazrat Dahej, Dabhol and the Cochin kerala. In addition, the distortion of India production of natural gas and gasified LNG pricing, all of the LNG terminal (except Dahej) capacity utilization rate is still low. To change this situation, the natural gas pipeline network must be established nationwide in India, and further that the natural gas price rationalization.

From the new India 2015 budget report, the country will focus on improving agricultural productivity and agricultural income, increase investment in infrastructure and social spending, etc., trying to solve an important problem in the development of chemical fertilizer industry problems. Under favorable policy framework, it can be expected that India will accelerate the pace of development of chemical fertilizer industry.