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By Nayan Dave
State-run fertiliser main Gujarat State Fertilizers and Chemical substances (GSFC) has been compelled to close its three diammonium phosphate (DAP) items located at its Sikka advanced close to Jamnagar, resulting from elevated costs of uncooked supplies — phosphoric acid and ammonia.
Prime sources within the Gujarat government-owned listed firm confirmed that the items at Sikka, located within the proximity of Reliance Industries’ (RIL) refinery advanced, have been closed for the previous two-three months. Based on an organization supply, costs of each the necessary uncooked supplies have shot up by 25-40% in a span of six months. Manufacturing of DAP isn’t viable contemplating the elevated costs of those two important inputs, he added.
The cumulative put in capability of those three crops is 1 million tonne every year. Ideally situated within the proximity of Sikka Port, GSFC’s Sikka advanced is unfold over 780 acres of land at Moti Khavdi village. The items have been initially designed for DAP however have the flexibleness to provide different merchandise, in tune with market necessities. Aside from DAP, the closed items additionally make ammonium phosphate sulphate and NPK, amongst others, as per market requirement.
One of many administrators on GSFC’s board claimed that with the kharif sowing season starting in several elements of the nation, GSFC would make all these crops operational once more quickly. He mentioned that final 12 months, GSFC equipped 80,000 tonne of DAP in Gujarat. “We’ll guarantee to supply not less than the identical quantity of DAP this season additionally, though the price of acid has gone up from $1,330 per tonne to $1,530, whereas ammonia is up from $900 to $1,140. Throughout the 12 months 2021-22, product sales of fertilisers have been at 463,000 tonne that features over 100,000 tonne of DAP. The earlier 12 months it was 567,000 tonne. Within the case of DAP, it was round 160,000 tonne,” he mentioned.
On the Sikka advanced, GSFC produces DAP from merchant-grade phosphoric acid and ammonia. The corporate imports phosphoric acid from nations like Morocco, Tunisia and South Africa. Within the case of ammonia, GSFC is counting on imports from Bahrain, Qatar and Saudi Arabia. These uncooked supplies arrive at Sikka Port, from the place it’s transported by a pipeline to GSFC items.
Initially, GSFC was based as a fertiliser firm with an goal of offering agriculture enhance to farmers. Later, as a part of a structured diversification technique, the corporate ventured into industrial chemical compounds additionally. At current, GSFC additionally manufactures plastic, nylons, fibres, industrial gases and assorted chemical compounds together with urea, ammonia, ammonium sulphate, sulfuric acid, phosphoric acid and DAP, caprolactam, melamine and methanol, amongst others, at its advanced in Vadodara. Its market capitalisation is over Rs 6,600 crore at present.
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