Govt bans import of ammonium nitrate in loose form

• In a major relief for domestic manufacturers of ammonium nitrate (AN) and security agencies, the Ministry of Home Affairs is learnt to have asked Department of Industrial Policy and Promotion (DIPP) not to allow bulk import of this chemical in loose form on the ground that it poses threat to national security.
• As per the directive, ammonium nitrate has to be imported in bagged form only irrespective of quantity in each bag and the consignment has to be packed at the point of origin.
• import in loose form and its possible indiscriminate import had raised concerns on threat to Indian’s national safety and security as ammonium nitrate is an extremely dangerous explosive substance.
• AN is so dangerous that the Home Ministry, in its latest order, has made it mandatory to make provision for two arm guards with GPS system to provide security for vehicles transporting AN inside India.
• India consumes about 7,00,000 tonnes of AN, a basic raw material for producing civil explosives used in mining and infrastructure industry. Since imported AN is 15 to 20 per cent cheaper, explosive manufacturers, who supply to mining and infrastructure companies, have been lobbying for bulk import that too in loose form to make it even more cheap.
• Manual handling in loose form has chances of material loss and there is potential risk to national security. Besides, ammonium nitrate, lying scattered on the wharf, also poses risk of explosion like the recent one at port of Tianjin in China.
• Globally, the entire trade of AN for explosive, be it export or import is done in big bags of 1 to 1.2 tonnes. Bagged AN is the pre-condition of all major ports. This has to be adhered to in India as well

POINTERS:

1. With this, the mid-August notification of the Ministry of Shipping that had allowed a port in South India to facilitate bulk import of ammonium nitrate in any form has become null and void.
2. Domestic manufacturers such as Rashtriya Chemicals, GSFC and Deepak Fertilizers had, though their association, raised objections as cheaper imports would have severely impacted their business.
3. India consumes about 7,00,000 tonnes of ammonium nitrate, a basic raw material for producing civil explosives used in mining and infrastructure industry.
4. Though the local industry has no major issues with imports in bagged form, it wants a level playing field .