Comparison between India and Ethiopian fertilizer use

1. Comparison between India and Ethiopian fertilizer use • ShawelBetru • International Environmental Economics

2. India

3. Agricultural in India • Indian agricultural policy has dramatically changed before and after 1947 independence • Focus from export crops to food crops • Food security has guided overall policy • High government involvement • New Agricultural Strategy: • Chemical fertilizer • high yielding variety • Irrigation

4. Overview of fertilizer policy, India

5. Nitrogen fertilizer growth

6. Increasing production of fertilizer • Caused by • Commissioning of new gas based plants in 1980s • Increasing capacity utilization 60% in 1970 to 90% in 1990s • Most of nitrogen fertilizer production is controlled by public sector • Lower capacity utilization

7. Present trends • Decreasing and abandoning fertilizer subsidy • Changing feedstock from naphtha and coal to LNG • Joint venture aboard: Senegal, Jordan, Iran and Oman

8. Ethiopia

9. Fertilizer policy, Ethiopia • The first comprehensive fertilizer policy was introduced in 1993 by TGE (transitional government) • Between 1985-1993 the parastatal corporation called AISCO completely and officially controlled fertilizer sector • 1993- fertilizer subsidy was introduced • Meant to offset effect of currency devaluation • Subsidy did not exceed 25% of unsubsidized price • 1997-1998- price decontrol was made

10. Fertilizer production and import • There is no production of inorganic chemical fertilizers in Ethiopia • In 1993 the government and WB intended to establish fertilizer factory • but there is no fertilizer factory in Ethiopia and therefore, all inorganic fertilizers.

11. Cereal yield growth, Ethiopia

12. Harvesting land

13. Import and marketing • Fertilizer import in Ethiopia is controlled by parastatal companies YARA AISCO Dinsho (oromia) Ambasel (Amhara) Wondo ( South ) Guna ( Tigray) DA DA DA DA DA DA DA DA DA DA DA DA DA DA

14. Import and marketing • Regional governments guarantee development banks on fertilizers credit • The development agents are responsible for collection of credits • Availability of credit is mostly politicized especially during elections

15. Import and marketing • Inaccessibility of farming areas and absence of sea port increased price and decreased use • Possibility of increasing arable land discouraged fertilizer use • In the past price of crops were controlled by the government which disfavor farmers • Ineffective extension system that depend of propaganda than actual profitability

16. Policy objectives failures • The number of people with chronic food shortage has increased to more than 5 million • There are no private companies in any form • No significant progress in establishing fertilizer factory

17. Comparison

18. Cereal yield growth

19. Fertilizer consumption

20. Arable land

22. Conclusion • India has room for improvement in fertilizer production and use • Policy change is obstructed by interest groups • Need institutional stability • Ethiopia has the potential to initiate production of nitrogen fertilizer and increase use • Encouraging private companies involvement • Better market environment • Efficient use of extension agents

23. Next plan • Prospect of fertilizer supply in India • Policy changes required in fertilizer sector • Potential of establishing Ethiopian fertilizer industry

25. Cereal yield

26. Harvested area

27. Cereal yield