Liberty Phosphate Ltd.

Liberty Phosphate Ltd.TMIndustryThere are about 139 fertilizer plants in the country, out of which 80 plants produce SSP with installed capacity of ~ 79 lacs MT.Consumption of SSP in the country is estimated to be about 30 lacs MT. SSP contributes to 6.6% of total phosphatic inputs in India.As per data released by International Fertilizer Association in 2007, there is high correlation between yield per hectare of cereals,paddy and pulses and use of SSP.India is the third largest producer and consumer of fertilizers in the world. Fertilizer consumption increased from 20.3 MTPAin FY ‘06 to ~29.2 MTPA in FY ‘11 led by a rise in phosphorous consumption, which rose from ~5.2 MTPA in FY ‘06 to ~9.4 MTPA inFY ‘11. The consumption growth in FY ’12 was 7% as against 14% in FY ’11. Fertilizer demand is expected to rise at a CAGR of ~8%to ~40-45 MTPA in FY ‘16. Phosphorous is expected to account for a bulk of that increase at a CAGR of ~15% to ~16-18 MTPA inFY ‘16 ,following increased availability of complex fertilizers after the Nutrient Based Scheme (NBS) came into effect. Producers arenow given a subsidy on the volume of nutrient sold as opposed to that on the volume of product sold earlier. This gives the producersincentive to sell other fertilizers besides urea and DAP. Fertilizer consumption per tonne of grain production has increased over theyears.SSP is a chemical Fertilizer which contains Phosphorus as a major plant nutrient. It is relatively very cheap and contains manymicro nutrients like Calcium, Magnesium, Iron, Aluminum, Sulphur and Gypsum. The Gypsum works as a soil conditioner. The SSP ismanufactured by the reaction of finely grounded Rock Phosphate with diluted Sulfuric Acid. Manufacturing of SSP is based on perhapsthe simplest chemical reaction amongst chemical fertilizer industry. SSP is a straight phosphatic multi-nutrient fertilizer whichcontains 16% water soluble Phosphorus Penta Oxide (P2O5), 12% sulphur, 21% calcium and some other essential micro nutrientsin small proportions. The Rock phosphate is available in Jordan, Egypt, India, China, Israel, Morocco, Syria, Senegal and many otherAfrican countries. The Sulfuric Acid is produced by using Sulphur as raw material.SSP is cost effective fertilizer, for small & marginal farmers as it provides phosphorous and sulphur at lower cost. Majorportion – about 40% - of agricultural land in India is Sulphur deficient, and it adversely affects the crop yield. N, P, K & S in proper ratioincreases fertility of soil. SSP fertilizer contains Sulphur and Calcium besides Phosphorus, so it is an ideal manure to eliminate sulphurdeficiency of soil resulting into increase in yield of pulses, groundnut etc. to a great extent.NBS policy announced in May ’10 recognized SSP as key fertilizer as NBS brought the price parity to the farmers for P&Kfertilizers based on nutrient content. It also enabled a level playing field for all fertilizers based on nutrient content. As the P componentis also offered by both DAP & SSP, the consumption of SSP increased due to price advantage. Production of SSP was almost stagnantduring last decade. Positive policy change has resulted in higher production and capacity utilization.The SSP is available in powder and granulated form. The Powder form is called as PSSP and the granulated form is calledas GSSP. The PSSP and GSSP are available in two grades. Grade A and grade B. The grading is done on the basis of water solubleP2O5 present in the product. The A grade contains 16% water soluble P2O5 and the B grade contains 14% water soluble P2O5. Thegranulated Super phosphate is some what costlier in comparison to PSSP because of the cost of granulation. The GSSP dissolves slowlyin the water present in the soil so it is available to the crops for a longer time. The free Phosphoric acid present in the SSP is very usefulfor alkaline soils. The PSSP & GSSP are white, cream, gray, brown or black in colour and packed in 50 kg. bags.Liberty Phosphate Ltd. is also available on www.balance-equity.co.in