PARADIP: The arrival of vessel MT Polar carrying 23,799 tonnes of ammonia has brought a sigh of relief for Paradeep Phosphates Limited (PPL), which was forced to minismise fertiliser production due to shortage of the raw material over the past few days.
The very large gas carrier (VLGC) arrived at Paradip Port on Thursday and was successfully berthed by the PPL at its jetty with the support of its technical team and assistance from port authorities
Sources said nearly 70-75 per cent of PPL’s raw materials, mainly ammonia and sulphur, are imported from the Middle East. With the ongoing tensions in the region severely restricting vessel movement through the Strait of Hormuz, the supply of ammonia and sulphur was disrupted, leading to shortage in PPL as well as nearby plants such as Indian Farmers Fertiliser Cooperative Limited (IFFCO) in Paradip.
Due to the shortage, production of fertilisers such as DAP and urea has been badly affected in the two plants over the last few days. Sources said to manage the situation, PPL has been trying to diversify its sourcing channels and explore alternative markets for raw materials.
Chief general manager of PPL Sumit Senapati admitted that production at the company had slowed down over the past few days due to the ammonia shortage, though operations did not stop completely. The arrival of the VLGC carrying ammonia will help overcome the present crisis. Production is expected to improve significantly after the arrival of the ammonia shipment, he added.