Press Note

Department of Fertilizers buys roughly 6 million metric tonnes of urea on Government account by importing through the canalising agencies Indian Potash Ltd. (IPL), Metals and Minerals Trading Corporation (MMTC) and State Trading Corporation (STC). For the year 2012-13, a tender was floated through IPL in early March 2012 and bids of 3 suppliers which were the lowest were finalized. These suppliers were to supply urea from Iran. But after few days, these suppliers informed that Government of Iran has put restrictions on export of urea from Iran till their spring season, which is understood to be June. Since urea was urgently needed by us for the ensuing kharif season, it was decided to float another tender through STC with a rider that supply from Iran should not be accepted since the suppliers again may back out due export restrictions in Iran. In the meantime, we requested our Ambassador in Tehran to take up the matter with the Government of Iran regarding problems being encountered by IPL suppliers in sourcing urea from Iran under the first tender.

The STC tender is yet to be opened and in the meantime, our Ambassador informed us after holding meetings with various authorities and companies in Iran that although there is an export ban from Iran but export permits are being given on case to case basis by the Government of Iran. Keeping in view his report, we have informed STC to modify the terms of the tender by removing restriction on Iranian urea.

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Department of Fertilizers, Ministry of Chemicals & Fertilizers, New Delhi
Vaisakha 12, 1934/ May 02, 2012

DNM/MG/AS