Trouble ahead for Indian urea business
EXPERTS believe that at least 60% of Indias urea production will become uncompetitive when the countrys import restrictions are abolished next year.
Quantative restrictions on urea imports to India are set to be done away with next April, reports the Financial Times.
The paper says a study has predicted that at least 37% of the industry will be unviable even if there is a customs duty of 30% and world prices stay at $163/t.
India has the capacity to make 20.8 million tonnes of urea each year. Analysts believe the world urea price for most of this decade will range from $140-160/t.
- Financial Times, page 42