Efficiency Improvement for Imported Fertiliser Logistics in India

Efficient logistics of fertilisers play crucial role in ensuring availability to farmers when and where required. Being an essential commodity; planning, production/import, distribution, movement, pricing, and related activities of fertilisers are regulated in India. Logistic cost of fertilisers is very high due to complex distribution network, infrastructure bottlenecks, and regulations. This paper identifies cost inefficiencies in the supply chain through stakeholder interactions and field visits. Shortage of railway wagons during peak season and high handling costs are identified as key challenges. This paper examines feasibility of moving bagged fertilisers in 20’ISO containers on railway flats and compares costing with conventional railway wagons presently being used. Movement of 25% of imported fertiliser cargo from Mundra port (approx. 1 million metric tons per annum) to selected 19 destination railway terminals is taken as a case study. The results indicate that container movement is economically feasible for long-haul movements.