Fertiliser sales pick up on revival of rains

The revival of monsoon in July-August has boosted fertiliser sales and nutrient makers are hopeful of a good season on better rabi offtake.

“Sales are a bit better. We are hopeful of a good season,” said PS Gehlaut, Managing Director of Indian Potash Ltd.

Though the delayed monsoon had triggered concerns among the nutrient makers, the revival of rains has resulted in a pick up in demand. Also the lower opening stocks with the distribution channel aided the sales.

The monsoon started on a weak note this year and the rain deficit at the end of June stood at 43 per cent, which impacted kharif planting thereby resulting in poor demand for fertilisers. The subsequent pick-up in rains during July and August aided the kharif plantings and latest data from the Agriculture Ministry suggests that overall acreages this year were lower by about 2.5 per cent over last year.

According to industry sources, the sales of urea were marginally down till mid-August, while that of complexes were a bit higher when compared to corresponding period last year.

Urea sales stood at 94.38 lakh tonnes till mid August against 97.75 lakh tonnes in the corresponding period last year. The imports of urea during April-August this year were lower by about a third at around 22 lakh tonnes against corresponding last year’s 31.27 lakh tonnes.

The sales of fertiliser complexes such as di-ammonium phosphate (DAP) till mid-August were higher at 19.32 lakh tonnes (15.2 lakh tonnes in corresponding last year). Similarly, the sale of NPK grades complexes was higher at 21.9 lakh tonnes (18.1 lakh tonnes) for the period.