Adapting to Reduced Subsidies

The Indian Government’s Nutrient-Based Subsidy (NBS) policy has been critical in keeping fertilizers affordable. However, with subsidies reduced for the Kharif 2024 season due to declining global commodity prices, the sector faces new pressures. Sankarasubramanian emphasized that strong demand fundamentals remain intact, and timely subsidy announcements have helped industries plan raw material procurement effectively.

Coromandel International is navigating these changes by:

• Enhancing Raw Material Sourcing: Strengthening sourcing capabilities and reducing dependence on imports.
• Investing in Backward Integration: Expanding intermediate capacities to support long-term production.
• Securing Global Resources: Entering mining operations in Senegal to ensure a steady raw material supply.

Tackling Global Supply Chain Disruptions

The ongoing Russia-Ukraine war has created widespread supply chain disruptions, particularly affecting key raw materials like potash, phosphate, and ammonia. Despite these challenges, Coromandel maintained full plant operations by leveraging strategic long-term supply contracts. This proactive approach ensured steady production amidst a volatile global landscape.

Nano Fertilizers: The Future of Indian Agriculture

Sankarasubramanian expressed optimism about the future of nano fertilizers, particularly Nano DAP, in India. “The potential to replace conventional fertilizers with nano variants is promising,” he remarked.

Coromandel’s innovations in this space include:

• R&D Excellence: Development of Gromor Nano DAP at the Monash Academy at IIT Bombay.
• Establishing a Nano Technology Centre: A dedicated hub for advancing nano fertilizer technology.

A Sustainable Vision for the Future

With a focus on innovation, resource efficiency, and sustainability, Coromandel International is not only addressing current market challenges but also preparing for a future driven by technological advancements in agriculture.

As Sankarasubramanian aptly summarized, “Our investments in R&D and backward integration are key to strengthening the fertilizer value chain and supporting Indian agriculture.”

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