By Nayan Dave

State-run fertiliser main Gujarat State Fertilizers and Chemical substances (GSFC) has been compelled to close its three diammonium phosphate (DAP) models located at its Sikka complicated close to Jamnagar, attributable to elevated costs of uncooked supplies — phosphoric acid and ammonia.

Prime sources within the Gujarat government-owned listed firm confirmed that the models at Sikka, located within the proximity of Reliance Industries’ (RIL) refinery complicated, have been closed for the previous two-three months. In keeping with 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 just isn’t viable contemplating the elevated costs of those two important inputs, he added.

The cumulative put in capability of those three vegetation is 1 million tonne each year. Ideally positioned within the proximity of Sikka Port, GSFC’s Sikka complicated is unfold over 780 acres of land at Moti Khavdi village. The models had been initially designed for DAP however have the flexibleness to supply different merchandise, in tune with market necessities. Aside from DAP, the closed models 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 vegetation operational once more quickly. He stated that final yr, GSFC equipped 80,000 tonne of DAP in Gujarat. “We’ll guarantee to offer 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. In the course of the yr 2021-22, product sales of fertilisers had been at 463,000 tonne that features over 100,000 tonne of DAP. The earlier yr it was 567,000 tonne. Within the case of DAP, it was round 160,000 tonne,” he stated.

On the Sikka complicated, GSFC produces DAP from merchant-grade phosphoric acid and ammonia. The corporate imports phosphoric acid from international locations 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 models.

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 diversified chemical compounds together with urea, ammonia, ammonium sulphate, sulfuric acid, phosphoric acid and DAP, caprolactam, melamine and methanol, amongst others, at its complicated in Vadodara. Its market capitalisation is over Rs 6,600 crore presently.

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