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4% of GDP is from fertiliser

 Fertiliser – agri – lots of ind
 Textile – 60% foreign exchange earnings
 One of the fastest growth rates
 Population increasing – need increase in food security – fertiliser – increasing
urbanisation – loss of land for agri because land for living needed
 1kg fertiliser – 8 to 10 kg of grains – efficient and sustainable
 1989 – 2006/7: 101% increase in usage of fertiliser – output of food/grain increased by
58% but increase in land has only been 8%
 14 different nutrients used for making fertiliser
 4 main categories of nutrients: organic, primary, secondary, micro
 Organic: Carbon, hydrogen, oxygen
 Primary: nitrogen, phosphorous, potassium
 Secondary: manganese, calcium, sulphur
 Micro:
 Ratio is supposed to be – N:P:K=2:1:1
 72% fertiliser – nitrogenous fert – cheaper so used more because farmers can’t afford
 27% fertiliser – phosphoric fert
 1% fertiliser – potassium fert – less because we don’t have a deficiency
 Per hectare usage of fertiliser was higher for Pakistani Punjab as compared to Indian
Punjab but their yield was higher
 Inaccurate combinations of fertiliser can lead to adverse effects – pollution and env
degradation
 Nitrogenous fert ki sabse imp category is urea – uss 72% ke 63% is urea
 Uske ilawa bhi bohot hain : dhund lena shayad extra marks miljaen
 Phosphorous fert ki sabse imp category is DAP – uss 27% ka 22% is DAP
 FACTOR CONDITIONS: raw material (52% of cost of fert production, 12-13% cost is of
fuel stock)
 Raw material for nitrogenous fertiliser : natural gas (feed stock gas – gov gives 60%
subsidy on this, doesn’t give subsidy on fuel stock gas) –> ammonia –> urea ; Natural gas
ki most imp fields are Mari Gas Field (less in caloric value so not fit/safe to be used in
domestic consumption – devoted to fert prod) and Sui Gas Field – supply of gas is
supposed to be at fixed rate
 Raw material for phosphoric fertiliser : phosphorous -> phosphoric acid ; not really
made in Pakistan, we don’t even know if we have phosphorous available, all we know is
that we re not capable of making it from scratch ; 40% of DAP is with Fauji Fert Ltd ; has
always been more expensive because less percentage of subsidy going to it – leads to
lack of usage of DAP which has many adverse effects
 Nitrogenous: high protein content, better colour and growth, increase in yield – increase
in demand during the period between sowing and harvesting
 Phosphorous: root development, seed formation, photosynthesis - increase in demand
during sowing
 Potassic: saves from pest attack and diseases, brings plumpness in seeds, improves
quality of seeds, helps in fruit formation
 Third most important raw material : water -> needed for production of fertiliser,
administration of fertiliser (proper dilution required)
 18 million hectare land irrigated in Pakistan – best network of canal system in the world
– so much loose silt has settled in them that capacity of reservoirs has decreased by 30%
 Machinery imported from Italy, Denmark, USA, Japan
 Warehousing is very important – plants, dealers, and government
 High level of unethical practices that corrupt the process
 Transportation cost – 18% transport is through railway
 45.8% of overall cropped area in Pakistan is used by wheat – usage of fert by wheat is
greatest
 Demand conditions: high usage in rabbi season
 Demand driver: cotton and wheat together use up 68% of fert – high ratio of area ; level
of rain low so usage of fert high ; previous produce of farmer high so demand for fert
next year will be greater ; gov policies (subsidy decreases so fert dand decreases,
support prices wali cheez ko research karna, loan and credit availability) ; perceived
quality (branding and marketing involved) ; area is also imp because farmers want to
reduce transportation costs
 Structure: