A delegation of FIPPI, led by Shri N. K Agarawal, Patron, FIPPI and Dr M P Singh DG, FIPPI interacted with the Secretary, Department of Fertilizers on 16th October to put forth their request for drafting appropriate policy with regard to making technical grade Urea available at reasonable rate to the panel industry. However the secretary, Fertilizer Department kept emphasizing on diversion of agricultural urea by Plywood and Panel Industry causing a loss of 20 K crore to the exchequer. To which, FIPPI reasoned that valuation of industry is not more than 100k which requires the quantity of tech grade Urea worth RS 2500 cr only.
FIPPI has also reiterated that the plywood and panel sector remain committed to cooperating with the Government to ensure proper regulation, traceability, and responsible use of technical-grade urea in accordance with the Fertilizer (Control) Order, 1985 (FCO) of the Essential Commodities Act, 1955 (ECA). Challenges faced by Industry in supply of technical grade were highlighted subsequently. It has been requested that a network of industrial dealers as provisioned in the FCO may be ensured as per the current distribution of plywood industries in the country to augment sourcing industrial urea.
Further adherence to FCO and level of distribution regulation of fertilizers in different states play an important role in the easy availability of fertilizers for other uses forbidden by provision 25 of the FCO, whereas availability of Technical-grade urea is limited and often imported. High reliance on imported technical urea creates trade vulnerability.
It was further elaborated that assuming full utilization of capacity (12 million CBM plywood, 4 million MDF and 4 million Particle Board) and best quality of products, total quantity of technical grade urea requirement will come to 5 lakh tonne valued at 2500 crore Rupees at assumed rate of 50 Rupees per kg. This estimation should help the policy makers to take suitable decisions in providing support at least to MSMEs by mechanism of notified price for technical grade urea for industrial uses and dispel the claim that diversion of agricultural urea for industrial uses deprives the exchequer of 20,000 crore Rupees annually.
[Published in Ply Reporter's November 2025 Print Issue]