Fertilizers Current Affairs - 2020

23.4 % decline in Growth Rate of Eight Core Industries in May 2020

Index of the Eight Core Industries for the month of May 2020 was released on 30th June 2020. The index was released by the Office of Economic Affairs (under the Department for Promotion of Industry and Internal Trade). Out of the total items included in the Index of Industrial Production, the Eight Core Industries comprises of 40.27 percent weight of the total.

The Eight Core Industries are: (i) Coal (ii) Crude Oil  (iii) Natural Gas (iv) Refinery Products  (v)Fertilizers (vi) Steel  (vii)Cement  (viii) Electricity

Highlights from the Index

Growth Rate of the Eight Core Industries has improved from a -37 percent in April 2020 to -23.4 percent in May 2020. The negative Growth Rate is due to the effects of Nationwide Lockdown in the months of April and May 2020.

Growth Rate of the Eight Core Industries in 2020:

  • January: +2.2 percent
  • February: +6.4 percent
  • March: -9.0 percent
  • April: -37 percent
  • May: -23.6 percent

Among the Eight Core Industries, only the Fertilizers Industry has been able to register an increase in growth rate in the month of May 2020 when compared to May 2019. Rest all 7 Industries have witnessed a decline.

In May 2020, when compared with May 2019, the Steel Industries have registered the highest decline of 48.4 percent among the Eight Core Industries.

Lock Down: Agriculture and allied activities exempted

On March 28, 2020, the Union Agriculture Minister announced that agriculture and farming related activities have been exempted from Lock Down. This was introduced in the second addendum introduced by the Ministry of Home Affairs.

Highlights

Under the second addendum issued by the Home Ministry towards the lock down, the following categories have been exempted

  • The ‘Mandis’ operated by the APMC (Agriculture Produce Market Committee)
  • The agencies or enterprises that are involved in procurement of agricultural products. This includes the Minimum Support Price operations as well
  • Packaging and Manufacturing units of fertilizers and pesticides.
  • Movement of machineries involved in harvesting and sowing. The movements within the states and between the states have been exempted from the lock down.

Significance

The move has been brought in to facilitate unhindered activities related to farming and agriculture. Also, this will also ensure supply of essential commodities to common people during the lock down.