What is LFS and how a company is designated as LFS ? Whether the company gets priority to sell its production in their own home state and neighbouring states over players from other regions?

  • LFS is lead fertiliser supplier who coordinate with all fertiliser companies operating in the state on behalf of state agriculture department, to ensure availability of fertilisers across all the blocks / districts of the state throughout the years by doing exercise of requirement v/s availability as per cropping patters and cropping area.
  • It is general practise of the Agriculture Departments of the State Govt to nominate large fertiliser manufactures unit of their own state / nearby state, as LFS. The local fertiliser company has normally largest stake in the local market and they understand the agriculture requirement of the state better.  Government of India while allocating the urea to various states ensures that the local manufacturer gets the maximum allocation in their own state as it saves freight subsidy of the government.