As per the latest provisional data, till 15 September, domestic sales of fertilizers, urea, DAP, NPKs, SSP, and MOP totalled 2.41mn t, less in comparison to the last year sales of September, that were 5.3mn t. And it is expected to slip even below to this level if the same sales rate will continue.
Looking at the sales of DAP and NPKs, with volumes of 345,000t and 555,000 respectively till the date this month continued to drive offtake, in comparison to that of last year in September i.e., 633,000t and 1.15mn t respectively.
There is a shortage in the sales of urea, one of the most consumed fertilizers in India, 1.34mn t till 15th September in comparison to that of the last year 2.93mn t in the same month.
Overall shortage in sales this month can be observed to move with the same trend as that of in August, 6.9mn t lesser compared to that of the last year in the same month i.e., 7.6mn t. Before facing the drop in August and September month, fertilizer sales had outdistanced the 2019 sales level by 42pc from January to July in India.
The starting of domestic sales was good, as farmers start buying from the first quarter of the year, supported by the solid agricultural fundamentals and monsoon projections. The area under which crops sown this Kharif season (April to September) has continued to rise, with an increase of 5.7 pc in the same period last year till 10 September. And more important factor, rainfall, due to solid rainfall this monsoon, from the month of June to September, fertilizer purchases by farmers were encouraged.
On average, countrywide rainfall this year is up to 862mm as per the latest data, which is increased by 7 pc on the long-term average for the corresponding period.
Source- Agropages
