Govt Mulls Export Ban On Sulphuric, Phosphoric Acid

The government is mulling to ban export of sulphuric and phosphoric acid to make them available for manufacturing of fertilizers.

Faced with serious availability problem and very high prices of the two raw materials the fertilizer manufactures have already suggested for an export ban.

Sulphuric acid is a material for manufacture of SSP fertilizer, while phosphoric acid is used in making Diammonium phosphate (DAP).

The Fertiliser Ministry has prepared a note for the cabinet committee on Economic Affairs banning export of sulphuric and phosphoric acid

Meanwhile, a senior government official fold PTI, “We don’t that the manufacturers of sulphuric and phosphoric acid should suffer by selling their products to the domestic fertiliser industry at a lower rate. They are entitled to receive international prices.”

He, however said that when India is a net importer of sulphur, sulphuric acid and phosphoric acid, it should not export these commodities.

The ban would also help in depressing the international prices where rates are rising due to India’s surfing import demand, the official said.

Currently, sulphuric acid is being imported at Rs.13, 000 per tonne and phosphoric acid at over Rs.90, 000 per tonne.

The export ban may also prompt the manufacturers of sulphuric and phosphoric acid to set up their own fertiliser plants where these two are the main raw materials, he added.

Current policy of the government is to allow free export and import fo these two commodities. For sulphuric acid, India’s major export markets are Namibia, Australia, Brazil, Chile, Egypt and Malaysia, While 98 per cent of phosphoric acid goes to Bangladesh.

Plea to waive export ban on premium oils

Edible oil traders have urged the Union Government to exempt premium oils from the Export ban as also non-conventional oils, like rice bran oil.

"The edible oils exported are of premium quality only, which contitutes less than half a percent of the total consumption", a Solvent Extractors' Association of India (SEAI) spokesman pointed out.

Traditionally, small volumes of premium (conventional) edible oils like coconut oil, sesame oil and mustard oil in consumer packs are exported. Also exported are vegetable fats like sal, mango kernel and kokum, which are used as cocoa butter substitutes in the manufacture of chocolates.

It had taken the trade many years to make in-roads into global markets. Indians settled abroad purchased the oils, Mr Sanjay Shah, Chairman of Indian Oilseeds and Produce Exporters' Association (IOPEA) pointed out.

Groundnut oil, sesame seed oil, safflower oil and coconut oil were not extracts of mass consumption, while palm oil and soyabean oil were now being imported, it was explained.

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