India to hunt for fertiliser assets abroad

Faced with instability in global prices and shortage of fertilisers on the domestic front, the government today decided that India should explore options to buy mines and factories abroad, sources said.     

The decision to hunt for fertiliser assets abroad was taken at a meeting called by Prime Minister Manmohan Singh with his Cabinet colleagues, including Pranab Mukherjee and Agriculture Minister Sharad Pawar.     

External Affairs Minister S M Krishna and Fertiliser Minister M K Alagiri were also present in the meeting.     

"The availability of fertiliser was discussed. It was decided to explore options to buy assets in other countries like Oman and Mongolia," sources said.     

They said the Prime Minister directed that the Fertiliser Ministry, helped by the Ministry of External Affairs, should look out for opportunities abroad on a priority basis.     

The suggestion to buy assets abroad was earlier given to the Prime Minister by Pawar, who had expressed concern over fertiliser shortages.     

He mentioned that the supply of key fertilisers -- Di-ammonium Phosphate (DAP) and Muriate of Potash (MoP) has been badly affected in the current Kharif season due to high global prices.     

"We need to take measures to secure supplies of imported fertilisers at stable prices. One way of achieving this is to invest in fertiliser companies abroad," Pawar had said in a letter written to PM earlier this month.     

He said another alternative is to explore possibilities of tie-ups/purchase of major potash source in the world, wherever the opportunity exists.      

Meanwhile, the Fertiliser Ministry has sought from the Indian Embassy in Belarus the details of potash mines, including those in Belaruskali.

Domestic production of fertiliser is just sufficient for half of the requirement.      

"We are witnessing instability in prices in the international market," the Agriculture Minister said. Due to this, the fertiliser subsidy had gone up to Rs one lakh crore.