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Malaysia timber trade hits RM9.95 bln in Q1 2025, eyes RM4 bln furniture exports by 2030
Malaysia timber trade hits RM9.95 bln in Q1 2025, eyes RM4 bln furniture exports by 2030

Borneo Post

time3 days ago

  • Business
  • Borneo Post

Malaysia timber trade hits RM9.95 bln in Q1 2025, eyes RM4 bln furniture exports by 2030

Zainal (seated centre) joins members of the newly installed SFIA 2025-2028 committee for a group photo. KUCHING (July 20): Malaysia's total trade value for timber and timber products, including exports and imports, reached RM9.95 billion in the first four months of this year, said Sarawak Timber Industry Development Corporation (STIDC) general manager Zainal Abidin Abdullah. He said exports contributed RM7.18 billion, signifying a strong demand for Malaysian timber products, while imports stood at RM2.767 billion, reflecting healthy domestic use and a well-connected supply chain. Wooden furniture took the lead in exports, bringing in RM3 billion, followed by plywood (RM742.5 million), sawn timber (RM582.5 million), and fibreboard (RM210 million). 'Last year, our timber exports reached RM22.9 billion, a solid 4.9 per cent increase from the previous year. This steady growth shows how resilient and adaptable our industry truly is,' Zainal said during the Sarawak Furniture Industry Association's (SFIA) 17th committee installation dinner held at Borneo Convention Centre Kuching on Friday. He said Sarawak's timber export earnings reached RM2.84 billion last year, a slight decrease from RM3.14 billion in 2023. 'More than numbers, these achievements underscore the timber industry's important role not only in driving Malaysia's economy but also in creating jobs and supporting communities, especially in rural areas,' he said. According to Zainal, innovation in design remains vital as Sarawak adapts to changing market trends, while efforts to expand market access through trade fairs and export programmes are opening doors worldwide. However, he pointed out that material shortages are a significant hurdle, with Malaysia importing up to 60 per cent of its raw materials like timber, hardware, and fabrics. 'Sarawak, despite its rich timber resources, often exports raw wood rather than finished products, limiting value-added opportunities. 'In addition, our industry relies heavily on foreign workers, which affects skills retention and innovation. Locally, there is a shortage of skilled craftsmen and designers, which slows productivity and the adoption of new technologies,' he added. Zainal also said Sarawak faces competition from emerging markets, such as China and Vietnam, while limited access to advanced technology and a small domestic market restrict growth. He added that environmental regulations and concerns about deforestation add further complexity, requiring sustainable practices that can be costly and difficult to implement. 'Despite these challenges, there is great potential for Sarawak's furniture industry, which can carve out a stronger position in the global market by investing in skills development, innovation, and sustainable practices,' he emphasised. On STIDC, Zainal said a comprehensive Furniture Industry Blueprint has been developed to map out a clear, strategic pathway for the sector's growth, encompassing product development, supply chain strengthening, and market expansion. 'In collaboration with the SFIA, STIDC is actively compiling a detailed database of member companies and their offerings, which will serve as a foundation for this blueprint. 'Through joint brainstorming sessions, we aim to establish a robust and integrated supply chain that supports our ambition to achieve RM4 billion in furniture export revenue by 2030,' he added. Meanwhile, SFIA president Leo Chiang said the furniture industry in Sarawak is facing an increasingly complex landscape, shaped by global and local shifts. 'Challenges – including the US tariffs affecting exports, Malaysia's expanded SST (Sales and Services Tax) raising operational costs, and the introduction of FWTA (Foreign Workers Transformation Approach) in Sarawak – add intense pressure and demand closer collaboration with stakeholders. 'Now, more than ever, we must work together to stay resilient and competitive,' he stressed. Chiang also said they look forward to even closer cooperation with STIDC in shaping policies, facilitating training, supporting innovation, and promoting Sarawak-made furniture on the global stage. 'We must also remain committed to developing our SMEs (small and medium enterprises), uplifting design capabilities, embracing sustainable practices, and grooming the next generation of industry players,' he added. *Editor's note: This article has been amended for accuracy. lead stidc timber trade Zainal Abidin Abdullah

Sarawak timber trade hits RM9.95 bln in Q1 2025, eyes RM4 bln furniture exports by 2030
Sarawak timber trade hits RM9.95 bln in Q1 2025, eyes RM4 bln furniture exports by 2030

Borneo Post

time3 days ago

  • Business
  • Borneo Post

Sarawak timber trade hits RM9.95 bln in Q1 2025, eyes RM4 bln furniture exports by 2030

Zainal (seated centre) joins members of the newly installed SFIA 2025-2028 committee for a group photo. KUCHING (July 20): Sarawak's total trade value for timber and timber products, including exports and imports, reached RM9.95 billion in the first four months of this year, said Sarawak Timber Industry Development Corporation (STIDC) general manager Zainal Abidin Abdullah. He said exports contributed RM7,183 billion, signifying a strong demand for Malaysian timber products, while imports stood at RM2.767 billion, reflecting healthy domestic use and a well-connected supply chain. Wooden furniture took the lead in exports, bringing in RM3,083.4 million, followed by plywood (RM742.5 million), sawn timber (RM582.5 million), and fibreboard (RM210 million). 'Last year, our timber exports reached RM22.9 billion, a solid 4.9 per cent increase from the previous year. This steady growth shows how resilient and adaptable our industry truly is,' Zainal said during the Sarawak Furniture Industry Association's (SFIA) 17th committee installation dinner held at Borneo Convention Centre Kuching on Friday. He added that Sarawak's timber export earnings reached RM2.84 billion last year, a slight decrease from RM3.14 billion in 2023. 'More than numbers, these achievements underscore the timber industry's important role not only in driving Malaysia's economy but also in creating jobs and supporting communities, especially in rural areas,' he said. According to Zainal, innovation in design remains vital as Sarawak adapts to changing market trends, while efforts to expand market access through trade fairs and export programmes are opening doors worldwide. However, he pointed out that material shortages are a significant hurdle, with Malaysia importing up to 60 per cent of its raw materials like timber, hardware, and fabrics. 'Sarawak, despite its rich timber resources, often exports raw wood rather than finished products, limiting value-added opportunities. 'In addition, our industry relies heavily on foreign workers, which affects skills retention and innovation. Locally, there is a shortage of skilled craftsmen and designers, which slows productivity and the adoption of new technologies,' he added. Zainal also said Sarawak faces competition from emerging markets, such as China and Vietnam, while limited access to advanced technology and a small domestic market restrict growth. He added that environmental regulations and concerns about deforestation add further complexity, requiring sustainable practices that can be costly and difficult to implement. 'Despite these challenges, there is great potential for Sarawak's furniture industry, which can carve out a stronger position in the global market by investing in skills development, innovation, and sustainable practices,' he emphasised. On STIDC, Zainal said a comprehensive Furniture Industry Blueprint has been developed to map out a clear, strategic pathway for the sector's growth, encompassing product development, supply chain strengthening, and market expansion. 'In collaboration with the SFIA, STIDC is actively compiling a detailed database of member companies and their offerings, which will serve as a foundation for this blueprint. 'Through joint brainstorming sessions, we aim to establish a robust and integrated supply chain that supports our ambition to achieve RM4 billion in furniture export revenue by 2030,' he added. Meanwhile, SFIA president Leo Chiang said the furniture industry in Sarawak is facing an increasingly complex landscape, shaped by global and local shifts. 'Challenges – including the US tariffs affecting exports, Malaysia's expanded SST (Sales and Services Tax) raising operational costs, and the introduction of FWTA (Foreign Workers Transformation Approach) in Sarawak – add intense pressure and demand closer collaboration with stakeholders. 'Now, more than ever, we must work together to stay resilient and competitive,' he stressed. Chiang also said they look forward to even closer cooperation with STIDC in shaping policies, facilitating training, supporting innovation, and promoting Sarawak-made furniture on the global stage. 'We must also remain committed to developing our SMEs (small and medium enterprises), uplifting design capabilities, embracing sustainable practices, and grooming the next generation of industry players,' he added. lead stidc timber trade Zainal Abidin Abdullah

Dependent on China, drowning in red tape: How a broken policy regime is killing India's small fertiliser manufacturers
Dependent on China, drowning in red tape: How a broken policy regime is killing India's small fertiliser manufacturers

Economic Times

time5 days ago

  • Business
  • Economic Times

Dependent on China, drowning in red tape: How a broken policy regime is killing India's small fertiliser manufacturers

iStock India imports roughly 20% of urea, 50-60% of DAP, 80% of specialty fertiliser, and 100% of MOP. Small is beautiful—but not always. Take the micro, small, and medium-sized enterprises (MSMEs) in India's fertiliser industry, for instance—more specifically, the smaller units engaged in the manufacturing of specialty fertilisers. Many of them are even on the verge of collapse as they grapple with mounting pressure from rising imports, regulatory burden, and high input costs. India, an agricultural-dependent economy, relies significantly on imports to fulfil its fertiliser needs, even though domestic production has increased to 503.35 lakh tonnes in 2023-24 from 425.95 lakh tonnes in 2019-20. And its top suppliers are China, Russia, Saudi Arabia, Oman, and the US. According to industry sources, the country imports roughly 20% of urea, 50-60% of DAP (Di-ammonium Phosphate), 80% of specialty fertiliser, and 100% of MOP (Muriate of Potash). Additionally, it also imports other fertilisers like NPK compounds and raw materials like phosphate rock and sulphur for DAP production. Recently, China, which accounts for nearly 80% of India's specialty fertiliser imports, imposed restrictions on exports. It has also suspended export permits for DAP since mid-2023. For India, this is a chance to augment its domestic capacity and become self-reliant in fertiliser. While the disruption in imports has highlighted the vulnerabilities in the supply chain, the 'ongoing preference for imports' in policy frameworks, as per local manufacturers, has impeded the growth of India's domestic specialty fertiliser players. According to them, subsidies and preferential trade rules for imported fertilisers have created an uneven playing field. According to industry estimates, India imported 150,000-160,000 tonnes of specialty fertilisers during the June-December 2024 period, with China supplying 70-80%. Although specialty fertilisers represent a small percentage of overall demand, their popularity is rapidly increasing, as they offer customised nutrient delivery that caters to specific crops, soil types, and growth stages. They improve crop yields and quality while minimising ecological impact by increasing nutrient use efficiency and reducing nutrient losses to the environment. Rajib Chakraborty, President, Soluble Fertilizer Industry Association (SFIA), says, 'The specialty fertilisers, particularly water-soluble fertilizers (WSFs), began to make inroads into the Indian market in the late 1990s. The real momentum in adoption and commercialisation of WSFs came in the early 2000s, when states like Maharashtra emerged as early adopters. And its adoption has increased by 20-30% over the years.' Specialty fertilisers include water-soluble fertilisers (WSFs), liquid fertilisers, micronutrient fertilisers, nano fertilisers, bio-stimulants, and organic formulations. While the big players in the country are focused on the production of major fertilisers like urea, DAP, MOP, and NPK, the specialty fertiliser segment is primarily led by MSMEs. While demand, especially for specialty fertilisers, is rapidly rising, the growth of India's domestic fertiliser production has been sluggish. Experts and industry stakeholders assert, among other things, that policies favouring imports have put local manufacturers at a disadvantage. 'No licenses are required for foreign suppliers,' as per the current regulations. 'An importer can simply submit a scanned letter to add the source, which allows them to sell across all operational states without facing the additional regulatory burdens of the Fertiliser Control Order (FCO),' says Rajib Chakraborty of SFIA; in contrast, an Indian manufacturer must navigate complex regulatory requirements, which include obtaining multiple licenses, maintaining offices, and setting up warehouses in each state where fertiliser is Rules, Small PlayersFor MSMEs, these are huge asks and not sustainable. Even though large manufacturers are subject to the same regulatory framework as smaller ones, their experience often differs due to scale advantages, according to Suhash Buddhe, Vice President, Vidarbha Industries Association. They can 'more easily navigate and comply with regulations due to their size and resources,' he says. MSMEs voice their grievances about the stringent FCO rules. They believe that their small size, which usually means selling goods worth around Rs 1 crore in a state, limits their operational flexibility. On the other hand, large companies with sales of Rs 100-200 crore can use warehouses to directly import and store consignments, thus bypassing certain regulatory hurdles that smaller units struggle with. Buddhe says, 'Many prefer imports over 'Made in India' products, not because of quality or price but due to complex regulatory hurdles and the inability of Indian SMEs to maintain licenses across multiple states. Even public sector undertakings (PSUs) are no exception.'ET Digital reviewed a PSU's tender for soluble fertilisers, which stipulated bidders (manufacturers/traders) to have an authorisation certificate for selling products in the applied state(s). The tender document specifies this condition. 'Similar cases have been observed in Government e-Marketplace (GeM) and direct tender invitations. Many PSUs are not floating the tenders through GeM, which promotes locally manufactured products. They are floating open tenders,' says Chakraborty. A senior official from the agriculture department states that the government is actively working to promote ease of doing business nationwide. Since fertiliser is a concurrent subject, many states have streamlined their systems, with ongoing efforts to further enhance the process, he notes. Meanwhile, Devesh Chaturvedi, Secretary, Agriculture & Farmers Welfare, says, 'There is always a scope for improvement.' Former Union Minister Suresh Prabhu acknowledges the difficulties faced by small fertiliser companies, especially in terms of compliance. 'Fertiliser companies face numerous issues, many of which are legitimate and require immediate attention,' says Prabhu. ET Digital attempted to contact officials in the concerned department through email and phone calls for this report; however, no response was received by the time the story was published. State officials overseeing fertiliser and agriculture departments declined to comment when contacted by phone. Some officials acknowledged the issue of over-regulation impacting SMEs but refused to provide further details. Although there has been no official response on this matter, experts and stakeholders point to structural issues in the regulatory framework. 'Regulatory framework is outdated' The FCO was enacted under the Essential Commodities Act, 1955, to regulate the quality of fertilisers and their distribution, particularly to facilitate the effective delivery of government subsidies and promote domestic production. Since then, the FCO, which is jointly administered by central and state authorities, has undergone several amendments. However, it has struggled to keep pace with the changing requirements of India's domestic agriculture, according to experts. They say the framework is outdated today, reflecting remnants of the 'Inspector Raj' and 'License Raj' Kedia, Banking Committee Chairman and former President of the Federation of Indian Micro and Small & Medium Enterprises (FISME), notes that fertilisers today are vastly different from those in 1985. 'The fertiliser list initially included basic nutrients like nitrogen, phosphorus, and potassium (NPK), primarily urea and DAP. Over time, it has expanded to include secondary nutrients like magnesium and calcium, along with micronutrients such as zinc and boron, making the regulatory framework more complex and wide-ranging,' he explains. With over 100 fertilisers currently listed under the FCO, along with countless mixtures of macro- and micro-nutrients, the current framework seems overly complex, says Kedia. 'Given the varying conditions across large states like Rajasthan or diverse regions like Andhra Pradesh, a label claim system could be more practical, he suggests. This, he argues, will empower industry while enabling 'consumers to make informed decisions based on specific nutrient requirements.' According to FCO rules, an SME involved in fertiliser needs to register separately in each state where it wants to operate. 'A few years ago, an initiative was launched to create a common portal for fertiliser manufacturers to register and operate nationwide. However, the effort reportedly didn't succeed, and the project ultimately fizzled out,' notes Kedia. Experts and stakeholders point out that the FCO bestows considerable authority upon individual inspectors, enabling them to suspend or shut down operations at their discretion. Experts point out that since fertiliser falls under the Essential Commodities Act, various departments may oversee it, depending on the state. 'In some cases, a single manufacturing unit may face oversight from as many as 32 inspectors, with the actual number on the ground often exceeding official records,' says Buddhe. From central government officials, such as the Deputy Director of Agriculture, Central Insecticide Inspector, Central Fertiliser Inspector, and Plant Protection Officer, to state government officials, such as the Chief Quality Control Officer, Chief Inspector (Seed), Deputy Director (Fertiliser), Technical Officer (Fertiliser), and Technical Officer (Insecticide), oversee the operations of fertiliser units. At the grassroots level, the Taluka Agriculture Officer adds yet another level of scrutiny. Additionally, flying squads from the Department of Agriculture conduct sudden inspections, he notes. 'This (several levels of inspection) fragments operations and increases compliance costs by 30-40% for MSMEs. Small manufacturers spend Rs 3-5 crore annually on compliance, equivalent to 20% of their R&D budgets, making innovation unsustainable,' adds Buddhe. A Punjab-based fertiliser SME's promoter admitted that his company incurred huge expenses to obtain licenses, maintain quality control systems, and meet the specific packaging and labelling requirements of FCO. 'We have experienced a significant surge in costs over the years, and increasing input costs have further exacerbated the situation,' he says. 'The plethora of complex and uncertain rules and regulations is creating a challenging environment for small fertiliser manufacturers in the country,' says another SME based out of Uttar Pradesh. Suresh Prabhu states that in 1999, during his tenure as the Minister for Fertilizers, a new policy was launched to address the industry's issues arising from excessive regulations, with the ultimate goal of phasing out the ministry itself. 'With the advancements in logistics and digital technologies enabling timely compliance, I believe it's time to revisit and update the fertiliser policy that was drafted in 1999. A new policy is overdue,' Prabhu says. However, regulation isn't the only challenge for fertiliser MSMEs in the country; they also deal with a skewed subsidy structure that favours larger companies, says Kedia. 'The current subsidy structure favours large manufacturers, giving them an uneven advantage. They receive subsidies on products with added micronutrients like zinc and boron. However, smaller players selling standalone micronutrient products don't get similar subsidies, putting them at a disadvantage.' After overcoming these initial hurdles, fertiliser MSMEs confront further challenges related to quality control for their smooth operations. Quality control The 2011 paper 'Fertilizer Quality Control in India: The need for a systemic change' by Sumita Kale and Laveesh Bhandari, published by FISME, stands out as one of the very few comprehensive studies on this topic. It highlights excessively strict tolerance limits and inadequate testing methods, especially for micronutrient fertilisers, as pressing concerns. The paper indicates that there are limited testing labs, which are poorly equipped and understaffed; additionally, it notes that sampling procedures are defective, all of which together undermine the accuracy and credibility of problems remain unresolved to this day, according to experts and stakeholders. The Central Fertiliser Quality Control & Training Institute (CFQCTI), Faridabad, has 'no information' on registered fertiliser dealers across the country, as per the RTI response received by ET Digital. Additionally, there was no definite number provided for fertiliser samples analysed and found non-standard in the last five years. Experts say that, despite increased capacity, testing labs are still unable to manage the minimum required samples, indicating a shortage of full-time inspectors. To maintain testing standards, the central government, however, established the National Accreditation Board for Testing and Calibration Laboratories (NABL), which accredits testing labs. Under the FCO, only 'approved' labs can conduct tests. Chakraborty highlights that most state laboratories fail to meet testing standards, with less than 5% being NABL-accredited. He recommends setting a strict deadline for NABL accreditation, requiring states to comply within a set timeframe, and not using non-NABL lab reports for criminal action against SMEs. 'We have increased the sanction of money to states for NABL accreditation of laboratories. We are actively addressing these issues,' says Agriculture Secretary Chaturvedi. Currently, there are 84 operational Fertilizer Quality Control Laboratories in India, including the four set up by the Central Government—the Central Fertilizer Quality Control & Training Institute, Faridabad, and its three associated regional laboratories. 'One nation, one license' To streamline operations of fertiliser units, Rahul Mirchandani, President of the Indian Micro-Fertilizer Manufacturers Association (IMMA), suggests a single licence for the entire country. 'With 'one nation, one license,' the FCO regulations should align with tax regulations, allowing businesses to bill and operate nationwide without state-specific constraints. This would eliminate the need for redundant licenses and reduce overhead costs,' says Aries Agro's, Chairman, believe key reforms are necessary to reduce import dependency, including limiting inspectors' powers and removing non-subsidised fertilisers from the Essential Commodities Act. They argue that stringent regulations, where minor lab errors can lead to jail time, create excessive fear among manufacturers and importers. Associations also demand a centralised portal for fertiliser. 'A centralised, pan-India licensing framework with a single-window digital compliance portal can reduce friction for manufacturers. Importers should also align with similar documentation and regulatory standards to ensure a level playing field. Additionally, creating a dedicated Department of Fertiliser and Agriculture Department liaison cell and encouraging PSUs to allocate a percentage of tender volumes to Indian small-scale manufacturers,' says Abhishek Wadekar, Founder & Chairman, Tradelink senior government official agreed that a central portal for fertiliser manufacturers to register and operate across the country would be beneficial. To promote local fertiliser production, stakeholders are calling for clearer clause definitions and less regulation. They suggest distinguishing between 'spurious' (intentional adulteration) and 'deficient' (unintentional nutrient deficiency). Currently, even a 0.1% deviation beyond tolerance limits can lead to spurious labelling and criminal prosecution. Standardising documentation across states is also a priority for them. Wadekar proposes addressing this gap through measures like harmonised compliance, centralised registration, and support mechanisms. Nishant Kanodia, Chairman, Matix Fertilisers and Chemicals, suggests adopting a risk-based, digital-first compliance model from other sectors could be beneficial since it would focus inspections on high-risk areas and simplify procedures for manufacturers with a good compliance track record.

India's horticulture crops under risk as China restricts supply of plant nutrients
India's horticulture crops under risk as China restricts supply of plant nutrients

New Indian Express

time07-07-2025

  • Business
  • New Indian Express

India's horticulture crops under risk as China restricts supply of plant nutrients

After shocking India's automobile sector by restricting rare earth magnets, China has now imposed restrictions on the supply of important Water-Soluble Fertilisers (WSF) ingredients used by India's horticulture sector. WSF, a class of fertilisers easily absorbed by plants, is applied through drip irrigation, sprinklers, or foliar spray, delivering nutrients directly to the leaves or plant instead through the soil. The restriction could jeopardise the viability of India's horticulture industry, which is larger than the country's grain economy and contributes around one-third to the agricultural GDP. The major horticulture crops that would be impacted are grapes, pomegranates, bananas, and polyhouse farming, where exotic fruits and vegetables are grown for exports. Moreover, foliar spray is also being used on crops like wheat to sustain nutrients. Over the past two months, China has invoked the China Inspection Quarantine (CIQ) -- an opaque inspection delay tactic -- which has sharply declined the supply of essential ingredients such as Mono Ammonium Phosphate (MAP), Calcium Nitrate (CN), and Potassium Nitrate (PN). India relies on China for approximately 80 per cent of its speciality fertiliser imports during peak seasons; however, data shows that imports have nosedived. For instance, the import of MAP was 12,525 MT in 2023 and 21,214 MT in 2024, but it declined to 2,842 MT as of June 1. Similarly, CN imported in India from China was 223,941 MT in 2023, and it dipped to 49,311 MT till June 2025. The import of PN was 27,913 MT in 2024, which reduced to 16,837 MT. 'China has put a soft blockade through CIQ, which unofficially banned India while continuing to supply it to other countries,' said Vinod Goyal, Secretary of the Soluble Fertiliser Industry Association (SFIA). India relies on China, importing over 80 per cent of the total required 4 lakh metric tonnes (LMT) of ingredients due to the better quality and competitive prices offered by China compared to other producers in the Middle East countries and Russia. Lalitkumar Periwal, one of the local manufacturers of WSF in Gujarat, said the country has only two months of stock. 'China had also put restrictions in 2023 but removed them in 2024 when we imported a record amount, which supported us in 2025, but again it put restrictions,' said Periwal. He emphasised the need for immediate policy intervention, such as removing WSF from the Essential Commodities Act to allow local manufacturing. Goyal also underlined concern like the existing disparity on policy is encouraging import from China while local manufacturers face huge hurdle. 'Chinese products can be supplied in any state with one license while domestic manufacturers need multiple licenses in every State, which restricts Make in India products,' he said. India's horticulture sector is key to agricultural growth and needs to be protected. While it has grown to cover over 13 per cent of cropped land, it contributes to around one-third of the country's agricultural GDP. Additionally, it surpassed the country's grain production. Following are countries where India import ingredients for Water Soluble Fertilisers. Product Major Supplier Countries MAP China, Russia, Korea Calcium Nitrate China, Russia Mono Potassium Phosphate China Potassium Nitrate China, Chile, Jordan Potassium Sulphate China, Egypt, Taiwan, Uzbekistan, KSA Boronated Calcium Nitrate China

China's sinister plan against India! After rare earth metal, stops supply of this critical material, set to affect agricultural sector due to...
China's sinister plan against India! After rare earth metal, stops supply of this critical material, set to affect agricultural sector due to...

India.com

time26-06-2025

  • Business
  • India.com

China's sinister plan against India! After rare earth metal, stops supply of this critical material, set to affect agricultural sector due to...

PM Modi and Xi Jinping- File image New Delhi: In a major development, China has stopped the supply of certain specialty fertilizers to India. These fertilizers are used to boost the yield of fruits, vegetables, and other crops. According to the reports quoting the officials from several importing companies, China has suspended this supply for the past two months. It is important to note that China is a major global supplier of agricultural inputs. The issue is that it has stopped supplying these specialty fertilizers only to India, while continuing exports to other countries. To recall, China had earlier stopped the supply of rare earth magnets to India. India imports nearly 80 percent of its specialty fertilizers from China. Rajib Chakraborty, President of the Soluble Fertilizer Industry Association (SFIA), said, 'China has been disrupting the supply of specialty fertilizers to India for the past four to five years. But this time, it has completely stopped it.' Before fertilizers are dispatched from Chinese factories, they must be inspected by the Chinese government. Experts say that China is deliberately not inspecting fertilizers bound for India. It is using various indirect methods to halt exports without officially imposing a ban. What does China want? Not only fertilizers, China is also restricting the export of certain specific raw materials. Many believe that these steps are taken in response to tariffs and other restrictions. The Indian government has made it mandatory for investments coming from China to receive government approval. This is directly impacting China. There have been clashes at the border, and China has supported Pakistan. These are also among the reasons why China has taken such steps. These are options available for India: India does not yet have the technology to manufacture specialty fertilizers. Until now, the demand for these fertilizers was low, so setting up manufacturing plants in India wasn't profitable for companies. However, Chakravarty said that specialty fertilizers are now beginning to replace primary fertilizers, leading to increased consumption. He also mentioned that several companies are now showing interest in setting up manufacturing units. Meanwhile, India can also explore other options for importing these fertilizers. A senior official from a multinational fertilizer company said that fertilizers can also be sourced from other countries such as Jordan and those in Europe. However, the challenge lies in ensuring that these chemicals reach India on time. Urea, diammonium phosphate (DAP), and muriate of potash are considered general-purpose fertilizers and are used for a variety of crops. In contrast, specialty fertilizers are designed for specific needs.

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