Fertilizer offtake increases by 13.9% YoY in November

December 22, 2020 (MLN): The total nutrient offtake during the month of November 2020 was about 542 thousand tonnes, showing an increase of 13.9 percent as against November 2019.

Nitrogen offtake was 346 thousand tonnes which increased by 28.2 percent while phosphate offtake was 191 thousand tonnes which decreased by 5.3 percent. Potash offtake increased by 23 per cent as compared to November 2019.

Product-wise, urea offtake was 533 thousand tonnes, which increased by 40 per cent. Main reason for increase in urea offtake is decrease in its prices in local market. Offtake of DAP was 367 thousand tonnes, which decreased by 9.3 per cent over November 2019.

Total production of all fertilizer products during November 2020 was 765 thousand tonnes. Out of this urea production was 515 thousand tonnes. Other fertilizer products were: DAP 77, Nitrophos 89, CAN 71, SSP 9.5, SOP 0.9 and different grades of NPK 2 thousand tonnes. Total imported supplies were about 164 thousand tonnes comprising 143 thousand tonnes of DAP, 0.4 thousand tonnes of SOP, 1.5 thousand tonne of MOP, 19 thousand tonnes of AS and 0.1 thousand tonnes MAP during November 2020.

During first two months of the current Rabi 2020-21 (Oct-Nov), total nutrients offtake increased by 24.7 percent as compared with same time frame of last year. Nitrogen offtake increased by 52.9 per cent, phosphate offtake decreased by 8.2 per cent while potash offtake increased by 45.8 per cent over same time frame of last year.

OUTLOOK FOR RABI 2020-21

Rabi 2020-21 started with opening inventory of 473 thousand tonnes of urea. Domestic production during Rabi 2020-21 is estimated around 3021 thousand tonnes. Thus, total availability will be around 3494 thousand tonnes. Offtake is estimated around 3244 thousand tonnes depending upon the present trend of fertilizer consumption.

There will be closing balance of 278 thousand tonnes at the end of season. The situation of urea during Rabi 2020- 21 seems to be comfortable. However, pocket shortages of urea may be reported during January and February 2021 due to closure of LNG based plants. Rabi 2020-21 started with 297 thousand tonnes of opening inventory of DAP. Domestic production estimates are 426 thousand tonnes. Total planned imports are 508 thousand tonnes. This will make total availability of DAP as 1232 thousand tonnes against the estimated demand of 991 thousand tonnes. Availability of DAP appears to be comfortable in the coming months.

Copyright Mettis Link News

Posted on: 2020-12-22T17:43:00+05:00

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