Iffco closes Kalol urea plant

Fertiliser cooperative Iffco on Wednesday shut down its urea plant at Kalol, Gujarat, in order to produce more ammonia for its phosphatic fertilisers plant in nearby Kandla.

Iffco said the move has been prompted by the massive increase in global ammonia prices to $238 a tonne from $170 per tonne in the past few weeks.

Keeping this in mind, the cooperative has decided to shut down the urea plant for the time being while it will continue to operate the ammonia unit.

When contacted, Iffco managing director U S Awasthi said in the wake of good monsoon this year, demand of phosphatic fertilisers is at its peak and their production at Kandla is going on at full capacity for which supply of ammonia is crucial.

He said it is apprehended that the current price of ammonia may disrupt its availability in the country and may have an adverse impact on production of phosphatic fertilisers.

"Iffco's decision will be in the interest of the country as it will utilise its domestic resources to the fullest extent and ease out the pressure created by the international ammonia prices", he said.

Under the existing government policies, the fertilizer industry is not in a position to bear with the additional financial burden caused by the increased cost of ammonia, he added.