According to the chairman and managing director Rashtriya Chemicals and Fertilisers Ltd (RCF) and chairman Western India Fertilisers Association DK Varma, "There will be a bond rate of 5 per cent customs duty on import of DAP and MOP. I think the government can give differential concessions for indigenous producers and imported fertiliser traders. This means that government concessions will be more for indigenous producers and will be less for the imported fertilisers traders."

"As regards QRs being removed on urea there is already a huge stock of around 25 lakh tonne as on March 31, 2001 which is lying in the market and in the pipeline produced by Indian manufacturers. Therefore, there will be no need for any imports during the next six months of the kharif period.

"Our country is presently self sufficient in regard to urea as per the present consumption pattern. It is also expected that government will make some policy decisions to restrict imports under some special provisions. So I do not expect that industry would be affected in the immediate future by the removal of QR on urea," added Mr Varma. But the Exim policy appears to have simply the private fertilisers companies left high and dry. According to president and managing director Coromandel Fertilisers Ltd RS Nanda, "We are quite disappointed the new Exim policy. With the removal of QRs, only the state canalising agencies would be able to import fertilisers. We all expected private companies to also be allowed to import freely which has not happened."