Indian Farmers Fertilizer Cooperative Limited(IFFCO)

The multi-state cooperative society known as IFFCO is called Indian Farmers Fertilizer Cooperative Limited. Cooperative Societies of India hold all of IFFCO. The society operates a fertilizer production and marketing business. New Delhi, India serves as the home base for IFFCO. Started in 1967 with 57 member cooperatives, it is now the largest cooperative in the world by revenue on GDP per capita (according to World Cooperative Monitor 2021), covering over 50 million Indian farmers through around 35,000 member cooperatives.

IFFCO is India’s largest fertilizer company, with a market share of around 19% in urea and over 31% in complex fertilizers (P2O5 terms).

The cooperative has a net value of $2.6 billion as of March 2021 and was included as the 66th largest firm in India on the Fortune India 500 list as of 2017.

History

1960s
Farmers in India and the founding fathers of a “young” India were inspired to seek out longer-term remedies by the food crisis of the early 1960s. To expand output, international groups like the American Co-operative Study Team undertook fertilizer feasibility studies in India. At the time, 70% of the chemical fertilizers used in India were distributed through the cooperative sector. Although this industry lacked any production facilities, it had sufficient distribution infrastructure. The private sector entered the fertilizer distribution industry in 1967 after the Government of India adopted a multi-agency strategy for fertilizer distribution. In terms of supply, private-sector manufacturing units gave cooperatives a secondary preference and allowed the private trade distribution network additional options. The cooperatives began receiving less supply of fertilizers as a result of this situation.

A new cooperative was formed to get around this restriction and to fill the gap left by the country’s rising need for fertilizer. Because of its essential principles of self-help, responsibility, democracy, equality, and solidarity, the cooperative idea was particularly appealing. The Cooperative League of USA said in 1964 that American cooperatives were interested in working with Indian cooperatives to establish fertilizer manufacturing capability.

The Indian government and other notable cooperators found the concept appealing. Indian Farmers Fertilizer Cooperative Limited (IFFCO), a multi-unit cooperative association with the primary goal of producing and dispersing fertilizers, was created as a consequence and registered on November 3, 1967. Through Cooperative Fertilizer International (CFI), American cooperatives gave IFFCO financial support as well as technical know-how. In particular in Kalol and Kandla in Gujarat, plans for ammonia, urea, and NPK facilities were presented in 1967. On November 3, 1967, IFFCO was registered as a multi-unit cooperative.

1970s

The Kalol and Kandla plants were established and constructed using excellent inventions and local materials. The Kalol, Gujarat, facility was officially opened in 1974, and construction on two further units was also started at the same time.

1980s

In Uttar Pradesh, in Phulpur and Aonla, two more urea facilities have been put into operation. The Padma Shri award was given to Mr. Paul Pothen, the founding managing director of IFFCO, in recognition of his contributions to the resuscitation and expansion of India’s agricultural and farming community. Eventually, IFFCO also acquired stock in Industries Chimiques Du Senegal (ICS), the country of Senegal’s largest industrial project for the production of phosphoric acid.

1990s

To fulfill the rising demand for IFFCO fertilizers and the rising need for food in India, the Kalol, Kandla, Phulpur, and Aonla facilities were built to enhance production capacity and improve production technology. The organization underwent significant change throughout this decade, laying the groundwork for the expansion that would follow in the years to come. The procedure resulted in a huge increase in the production units’ capacity and capabilities as well as a fantastic rise in their operational efficiency, putting them on par with the highest international standards.