Prices of raw materials, used to make fertilisers, saw an unprecedented surge after the Russia-Ukraine conflict that began 14 months back. Natural gas spiked over 1.5 times and phosphorous acid by 15%; other inputs saw surges as well.
The upshot was fertiliser prices rocketing globally. Domestic manufacturers felt the heat, too, because of high dependence on imported raw material. To boot, imported fertilisers comprise 20-30% of domestic consumption.
While timely intervention by the government through subsidy increases has mitigated the impact to a large extent, still elevated gas prices and the threat of an El Niño event clouds the outlook for this fiscal.
To be sure, the development of nano fertilisers could be a gamechanger, capable of replacing imports and reducing reliance on government subsidies. However, their efficacy and roadmap for application remain to be seen.
To delve deeper into the sector, CRISIL Ratings is organising a webinar, where our experts will cover:
Resilience of domestic fertiliser consumption given elevated prices
Outlook for domestic demand
Profitability of fertiliser makers and expectations
Trends in subsidy receivables
Potential and outlook for nano fertilisers
Impact on the credit profile of the sector
This will be followed by a panel discussion with experts from the industry and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
