Fertiliser Industry

Location Factors:

• Raw materials – naphtha, rock phosphate, Sulphur and gypsum. (Note: Use of Naptha has been banned since 2016 and now we use gas)
• Energy sources – a) Coal based (Durgapur, Rourkela), b) Gas based (Gujarat, Maharashtra) and c) Lignite based (Neyveli).
• Inter-industrial linkages: Mostly located near petro-refineries as they require naphtha as raw material which is derived from crude oil.
• Transportation– In recent years, transportation of naphtha and gas via rails and pipelines have redistributed across the country. For ex. Construction of HBJ pipeline has led to decentralization of this industry towards interiors of the country. IFFCO plants in Phoolpur etc.
• Demand: The dominance in Gangetic plains is on account of huge demand due to agriculture as a dominant activity there.
• Policies: Cooperatives such as IFFCO and KRIBHCO have played an important role in the development of this industry.

CHALLENGES WITH FERTILIZER INDUSTRY

• India has very limited domestic production rock phosphates (used in phosphatic fertilizers) and potash (used in potassic fertilizers). Hence, it is mainly dependent on imports for these. 
• Overuse of urea by farmers: The ideal ratio of fertilizer usage 4:2:1 for N: P: K. However, Indian farmers overuse Urea and under Potassic and Phosphorus based fertilizers. 
• Environmental impact of this industry.