United Phosphorus: Steps Towards Sustainable And Smart Farming in India

In the era of digitalisation, agriculture still holds as much relevance as before. You can see stocks of various companies engaged in agriculture or agriculture-related activities offering steady returns over the last few years. However, one company that has grabbed investors’ eyeballs recently is United Phosphorus Limited (UPL). 

There has been consistent movement in the UPL share price with it trading around Rs. 480+ in May. But what’s the reason behind this volatility? Let’s understand them through their contribution to the farming sector.

Reasons Behind United Phosphorus Limited Growth 

Here are the top reasons for investing in this stock.

1. Product Spotlight

UPL offers a diverse product portfolio. For example, they have Saaf in fungicides, Iris in herbicides, and Ulala in pest control. 

These products are carefully developed to be effective against various crops and diseases and safe for beneficial insects. 

2. Collaborations for Sustainable Agriculture

UPL has been actively collaborating to promote sustainable agriculture in India. For example, the partnership with Koppert India was signed on 12th May 2022. This collaboration is focused on the use of bio-fertilisers like Copio. 

Through this partnership, UPL aims to improve soil health, which can lead to better plant establishment and overall output. Another key collaboration is with Chr. Hansen Holding A/S to develop microbial-based bio-solutions.

The advantage of this company’s continuous collaboration is evident in the UPL share price chart below.

3. The Gigaton Challenge 

To combat climate change through agricultural practices, UPL has launched the Gigaton Challenge. The project aims to reduce atmospheric CO2 by one gigaton, creating a new agricultural carbon market. 

The project began with a pilot phase in countries like Brazil, Chile, Argentina, India, the USA, and key European markets. By 2025, UPL plans to scale up the initiative, impacting over 100 million hectares worldwide.

4. OpenAg Network

The OpenAg Network focuses on several key areas. These include:

  • Open Intelligence: It provides insight-led solutions that are developed after a deep understanding of farmers’ aspirations and daily challenges. 
  • Open Innovation: The initiative focuses on breaking new ground with smart climate technology that improves crop production in challenging environments.
  • Open Markets: This approach aims to create higher profits and yields for Latin-American exporters through the ‘Pasaporte Verde’ scheme.
  • Open Collaboration: UPL has partnered with companies like Croda to improve cocoa farming.

5. Pronutiva Program

This program leverages the synergistic effects of bioprotection, biostimulants, and bionutrition with traditional plant protection products. Pronutiva programs can be tailored to cover plant needs throughout the entire season or at specific crop development stages. 

The application methods include seed treatment, in-furrow applications, fertigation, or foliar sprays. The program provides better control over resistant weeds and increases profits through enhanced yields.

6. Water and Nutrient Conservation

UPL focuses on the Zero Liquid Discharge (ZLD) approach. This aims to eliminate liquid waste and maximize water efficiency in industrial processes.

The project involves using Scaleban technology. This allows the company to utilize process effluent with high Total Dissolved Solids (TDS) as makeup water in cooling towers instead of fresh water. 

This approach has been successfully implemented at UPL’s Ankleshwar Unit I, where the cooling tower for a 125TR YORK chiller condenser operates with high TDS effluent, leading to significant water conservation.

Conclusion

United Phosphorus’s steps towards sustainable and smart farming in India blend technology, innovation, and collaboration. Their efforts are not just about increasing agricultural productivity but also about nurturing the environment and empowering farmers. As UPL continues to expand its reach and develop new solutions, it remains a key player in shaping the future of agriculture in India and beyond.

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