Due to constraints in the availability of gas in the country, which is the preferred feed stock for production of nitrogenous fertilizers, a near total dependence of the country on imported raw materials for production of Phosphatic fertilizers and full import dependence for MOP, the Government has been encouraging Indian companies to establish Joint ventures production facilities with buy back arrangement in other countries, which are rich in fertilizer resources.
The Union Cabinet chaired by Prime Minister Shri Narendra Modi, has approved the signing of a Memorandum of Understanding (MoU) between India and Jordan for mining and beneficiation of Rock Phosphate & MOP and setting up production facility in Jordan for Phosphoric Acid/DAP/NPK Fertilizers with a long term agreement for 100% off-take to India.
The MoU would ensure consistent supply of raw material, intermediaries and finish P&K fertilizers to cater to the needs of the country at a reasonable price.
Existing joint ventures, namely Oman India Fertilizer Company (OMIFCO), Oman in Urea and Industries Chimiques du Senegal (ICS), Senegal and Indo-Maroc Phosphor (IMACID), Morocco in Phosphate have given the Country assured sources of supplies of Urea and Phos acid, a critical input for production of Phosphatic fertilizers.
