Paradip: Production remained suspended Thursday at the Indian Farmers Fertiliser Cooperative Limited (IFFCO) fertiliser plant in Paradip, regarded as Asia’s largest fertiliser manufacturing facility, following a shortage of imported raw materials caused by disruptions in Middle East shipping routes.
Plant officials said supplies of key inputs such as sulphuric acid, phosphoric acid and ammonia required for fertiliser production have been severely affected because of restrictions on vessel movement through the Strait of Hormuz amid continuing regional tensions involving Iran, Israel and the United States. The shutdown began Wednesday and has raised concerns over fertiliser availability ahead of the kharif cultivation season.
The Paradip unit contributes nearly 20 per cent of India’s fertiliser supply and has an annual production capacity of about 2.2 million metric tonnes. Industry sources said raw materials for the plant are imported mainly from Jordan, Oman, Kuwait, Egypt and Morocco. However, instability in the Gulf region has disrupted maritime transport, delayed shipments and sharply in creased import costs. Apart from its impact on agriculture, the suspension is also expected to affect the local economy. Around 10,000 families are directly or indirectly dependent on the plant through employment, trans port, contract work and related activities.
India currently has 36 fertiliser plants spread across 13 states, operated by both public sector undertakings and private companies. Among the country’s largest units are the IFFCO Paradip plant and Paradeep Phosphates Limited (PPL).
Officials at Paradeep Phosphates said production at their facility has not been stopped, although output capacity has been reduced because of similar raw material shortages. Earlier this year, IFFCO Managing Director KJ Patel had warned that disruptions in global supply chains were making fertiliser production increasingly expensive and difficult to sustain. During a visit to the Paradip facility in March, Union Home and Cooperation Minister Amit Shah also reviewed the supply situation with company officials. Industry observers warned that if the supply chain disruption continues, other fertiliser plants across the country may also face production cuts in the coming weeks.
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