Diplomatist Special Report: West Asia - North Africa 2018 WANA 2018 - Page 14

Fertiliser Cooperation India-WANA By PRERNA SANJAY* T he increasing population means higher demand for food. Threats in agricultural production such as pests, loss of soil fertility and lack of nutrients may result in a low percentage of plants to harvest. If these problems are not addressed, there would not be enough crops which compose a big fraction of our food supply to sustain the needs of the people. Hence, the importance of using fertilizers rises. Fertilizers do not only assist in increasing yields and promoting healthy growth of plants, but also in their development. They contain nitrogen which acts as a growth booster, which can be characterized by the green colour of plants. Phosphorus substance in fertilizer aids in the faster formation of seeds and root development. The Indian government is endorsing, the need of cooperation on the fertilisers in all corners of the world, with similar socio-economic problems India is much keen on the cooperation among developing and poverty-driven nations. Similarly, in West Asia and North Africa, the involvement of the state in fertilizer production is driven by food security rather than business principles. The region's burgeoning population, economic growth potential, and rich endowment with energy and mineral resources combine to render the 14 •West Asia-North Africa region a hotspot for signifi cant global supply and demand growth. Sharing the vision of the governments of both regions, the largest phosphate producer in the world and a leading global fertilizer player, backed by almost a century’s production history – OCP and Kribhco – which is a Multi-State Cooperative Society, incorporated in 1980, for the production of urea in the state of Gujarat, is the second largest Urea distributing player in India. It has a market share of approx. 14 percent of Urea sales and are entering into a 50:50 joint venture, to develop a large-scale greenfi eld NPK fertilizer plant in Krishnapatnam, Andhra Pradesh, India. This Fertilizer plant will require an initial investment of approximately $230M and will have an annual production capacity of 1.2 MT of NPK fertilizers. Furthermore, the project also includes the development of logistical infrastructure in the region. In the spirit of PM Modi's call for “Make in India”, the JV shall provide quality indigenous NPK fertilizers to Indian farmers by leveraging on Kribhco’s deep knowledge of market and farmers requirement, as well as OCP’s world-class industrial capabilities and expertise. Fertilizers are one of 25 core sectors identifi ed for “Make in India” campaign by Govt. of India.