India’s fertilizers sale up in Apr-Might on helpful monsoon, however DAP offtake down

Fertilizer gross sales in India elevated by 3.6 per cent o 50.7 lakh tonnes (lt) in April-Might of the present fiscal nearly as good rainfall within the rising areas had helped improve the offtake.

As fertilizer utilization in kharif season is linked to rainfall, good rainfall over all areas, besides a couple of States which have been poor till 10 days in the past, has helped improve demand for the crop vitamins. The pan-India rainfall stands at 1 per cent above its lengthy interval common throughout June 1- July 24, IMD knowledge present. Solely 11 States masking 22 per cent of geographical space are poor.

On the similar time, consultants mentioned the rise in gross sales was because of the base impact as there was a drop throughout April-Might 2023. Consumption of fertilizers dropped practically 2 per cent, together with 3 per cent fall in urea throughout April-Might final 12 months. Consumption of fertilizers was 48.9 lt within the year-ago interval.

Nonetheless, di-ammonium phosphate (DAP) gross sales declined by 9.3 per cent to eight.8 lt. With present fall in DAP gross sales, world costs ought to come underneath strain as India is amongst high consumers of the phosphatic fertilizer, business sources mentioned.

MOP gross sales up 52%

When DAP gross sales improve, abroad sellers elevate their costs as they know that the Authorities has to bear subsidy burden to take care of the utmost retail worth (₹1,350/bag of fifty kg) for the farmer.

In accordance with newest official knowledge, general consumption of urea in first two months of present fiscal elevated 2 per cent to 31.8 lt from 31.2 lt a 12 months in the past. Equally, Muriate of Potash (MOP) rose 53.2 per cent at 1.7 lt towards 1.11 lt and complicated elevated by 21 per cent to eight.4 lt from 6.94 lt a 12 months in the past. Advanced fertilizer is a mix of nitrogen (N), phosphorous (P), potash (Okay) and sulphur (S) vitamins.

Amid the federal government’s goal to make the nation self-sufficient in urea by 2025, there was a marginal drop in import to six.4 lt from 6.92 lt in April-Might. As urea is totally managed by the Authorities, together with its import by some choose businesses, the business doesn’t have any problem besides well timed fee of subsidy. There was file import of urea at 98.28 lt throughout FY 2020-21.

Imports too fall

Import of general fertilizers dropped by 12.5 per cent to 24.5 lt throughout April-Might from 28 lt a 12 months in the past, by which advanced import declined most by 22.1 per cent at 4.5 lt from 5.78 lt and that of DAP by 18.8 per cent to eight.5 lt from 10.47 lt. Solely MOP import surged 5.6 per cent to five.1 lt from 4.83 lt.

Manufacturing of all fertilizers was a tad decrease at 81.2 lt from 82.04 lt, which included urea at 51 lt (49.8 lt), DAP 6.6 lt (7.86 lt), advanced 15.9 lt (15.68 lt) and SSP 7.7 lt (8.7 lt).