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Indian Farmers Fertiliser Cooperative

An IFFCO Farmer service centre
An IFFCO Farmer service centre Image: Wikimedia Commons. Iffco pr / CC BY-SA 4.0

The Indian Farmers Fertiliser Cooperative Limited (IFFCO) is an Indian multi-state cooperative society engaged primarily in the manufacturing and marketing of fertilisers. Headquartered in New Delhi, it is one of the largest cooperatives in the world by turnover and is owned by thousands of member cooperative societies across India.

Key facts

Name Indian Farmers Fertiliser Cooperative Limited
Common abbreviation IFFCO
Type Multi-state cooperative society
Founded 1967
Headquarters New Delhi, India
Industry Fertilisers and agri-inputs
Ownership Member cooperative societies of India

Overview

IFFCO was established to enable Indian farmers, through their cooperative societies, to produce and distribute fertilisers required for agriculture. Its core products include urea, di-ammonium phosphate (DAP), NPK complex fertilisers and a range of micronutrients and agrochemicals. The cooperative also supplies seeds and bio-fertilisers, and has expanded into newer formats such as nano fertiliser products.

Background

The Indian fertiliser sector in the 1960s was dominated by the public and private sectors, with limited involvement of farmers themselves in production. IFFCO was formed as a cooperative initiative so that the gains from value addition in fertiliser manufacturing could flow back to the farming community through their primary agricultural credit societies and apex state cooperative federations.

Operations

IFFCO operates large fertiliser production complexes in different parts of India. Its plants manufacture nitrogenous and phosphatic fertilisers, with marketing handled through a network linked to state and district cooperative federations as well as direct retail outlets. The cooperative supplies fertilisers across most Indian states and also exports to overseas markets.

Production sites

  • Kalol, Gujarat – ammonia and urea
  • Kandla, Gujarat – complex fertilisers (NPK, DAP)
  • Phulpur, Uttar Pradesh – ammonia and urea
  • Aonla, Uttar Pradesh – ammonia and urea
  • Paradeep, Odisha – DAP and complex fertilisers

Subsidiaries and joint ventures

IFFCO has diversified through several subsidiaries and joint ventures in areas connected to agriculture and rural services. These include ventures in general insurance (in partnership with Tokio Marine of Japan), rural telecom and digital services, logistics, and overseas fertiliser raw-material sourcing through joint ventures in countries such as Oman, Jordan and Senegal.

Cooperative structure

Membership of IFFCO is restricted to cooperative societies, not individual shareholders. The general body comprises representatives of member societies, which elect a board of directors. The cooperative is registered under the Multi-State Cooperative Societies Act and functions under the regulatory framework applicable to cooperatives and the fertiliser industry in India.

Significance

IFFCO is considered an important institution in the history of Indian agriculture and the cooperative movement. By aggregating the resources of cooperative societies, it has provided farmers with access to fertilisers and related inputs while channelling surpluses back to its member societies. It has also been involved in farmer education, soil testing and promotion of balanced fertilisation practices.

References