A STUDY OF SALES TREND AND COST STRUCTURE OF INDIAN FERTILIZER INDUSTRY

Abstract

The fertilizer industry has played a major role for mass production of food grains. Today, India stands as the third largest
fertilizer consumer and producer of the world. It has been observed that the subsidies on Indian fertilizer have been rising
at constant rate. This is due to the rise in the cost of production and the inability of the government to raise the maximum
retail price of the fertilizers. The Indian chemical fertilizer industry is developing fast in terms of using the latest worldclass
technology. Indian manufacturers of chemical fertilizers are now adopting some of the most advanced
manufacturing processes to prepare innovative new products to supplement the Indian agriculture. India is also ranked
as the third-largest exporter and producer of nitrogenous fertilizer. Trend analysis is effective only when relevant and
related items are studied together. The trend of sales indicates the direction in which a concern is going on, and on the
basis of which forecast for further can be made. The trend analysis of sales helps to understand, the growth of a business
enterprise Thus, the results which are shown are an enterprise has to be viewed in conjunction with the resources
employed. In present paper attempt has been made to study the cost component of Fertilizer units and study. For the
purpose of analysis of cost component all component cost has been calculated as percentage of sales. While to analysis the
sales position of units trend analysis is made. Its strength and weakness and its stages where it has to improve and
giving the overall position of the companies for the management for decision making so that its resources are used most
effectively and efficiently. This study not only help the management, it also gives a clear - view to the owners, share
holders, creditors and investors.