Fertiliser Association of India
(FAI)fears that several fertiliser units will be closed down
in the process of switchover from the present administered
pricing mechanism to a market-based regime for meeting the
obligations under WTO.
Given the highly heterogeneous nature of the fertiliser
industry in India, switchover to a market based regime to meet
the obligations under WTO will seriously affect viability of
several plants, leading to their eventual closure, FAI said
in a representation, submitted recently to the Fertiliser
Minister Suresh P Prabhu.
The apex body of fertiliser manufacturers said this
would mean substantial loss of domestic output and
corresponding increase in import of urea to meet the demand.
This carries with it the danger of our being exploited
in the international market by way of higher prices as well as
problems of availability, the paper said.
In order to prevent such a situation and protect the
viability of all efficiently-run plants, government should
strive to maintain quantitative restrictions (qrs) on urea
imports for at least five years, the association said.
Report: Zeenext Bureau