Fertiliser Industry

This project analyses the present status of Indian Fertiliser Industry in a banks perspective, reviews the existing guidelines and suggests future approach for extending credit facilities to the Industry. The bank has exposure as Fund based and Non Fund based towards the fertiliser industry.

Background:

India is predominantly an agrarian economy. The Indian economy mainly depends upon its agricultural production. Agriculture is an empowered arena nowadays. With advancement of technology, new machines related to cultivation, harvesting, etc. are being introduced to enhance the productivity. Now that everything has been taken care of, how can one remain behind to promote the real growth. The agricultural output contributes to about 25% of the country's GDP. As a result of the fertilisers being one of the related parts of the agriculture, there is tremendous scope for the growth of the fertilisers industry of India.

Today when the whole life cycle of every plant is in human hands, each step of growth is studied deeply and no one is ignorant of the rising nutrient demands of the plants. Science has evolved with each progressive day and the agricultural front has not been left untouched. New synthetic degradable and non degradable fertilisers have been duly introduced looking at the hastened demands of food.

Today productivity has been increased by a major proportion and the entire credit goes to fertilisers. Fertilisers are a superior and advanced means to promote and enhance productivity. All the fertilisers have been categorized into several types depending on their constituents, strength and various other features. However each fertilizer contains adequate amounts of the needed chemicals, minerals and elements to ensure a healthy and fast growth.

A fertilizer is essentially a blended mixture of one or more organic or inorganic compounds or chemicals needed by the plants for enhanced and nourished growth. Based on these constituent components,...