After releasing a record 3.7 million tonnes (mt) of urea into the market last month, the Centre on Tuesday said that the volume of the nutrient despatched till January 26 was some 2.26 mt.

Total urea requirement for January assessed by the Fertiliser Ministry is pegged at 2.94 mt, while the supply plan is around 2.96 mt.

The demand for urea during the Rabi season peaks around end-December and early-January and the usual monthly requirement of the fertiliser – the price for which is capped at ₹5,360 a tonne – is estimated around 2.5-3 mt.

A demand-supply gap between October and November had resulted in black marketing, particularly in the northern and eastern parts of the country.

Total despatches (for January) were 2.26 million tonnes up to January 26, 2015, while the availability of urea, including the opening stock as January 26, was 2.4 million tonnes, said an official statement.

Urea production in the country is 22 million tonnes, while domestic demand is pegged at 30 million tonnes annually.

The shortfall is made up through imports via three canalising agencies, the State Trading Corporation (STC), Metals and Minerals Trading Corporation and Indian Potash Ltd.

Earlier this month, reports emerged that the Centre was considering deregulating urea prices and scrapping the import duty of 5 per cent currently levied.

The claim was quashed by Fertiliser Minister Ananth Kumar who stated that reforms in urea policy were being undertaken to boost domestic production but there would be no increase in the price of the fertiliser.

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