Sale of Urea plummets by nearly 26 percent in March

April 27, 2020 (MLN): Total urea offtake during March 2020 was about 303  thousand tonnes, which exhibited a decrease of 25.9 percent over March 2019.

According to monthly data released by the National Fertilizer Development Center, the cumulative offtake during Rabi 2019-20 was 2872 thousand tonnes, showing a decrease of 5.3 percent.

Urea offtake during March 2020 decreased in Punjab, Sindh, KP, and Balochistan provinces by 25, 32, 20, and 35 percent respectively as compared to March 2019.

Total urea availability during March 2020 was about 895 thousand tonnes, which included 385 thousand tonnes of previous month leftover and 510 thousand tonnes of domestic production. Urea offtake during March 2020 was 303 thousand tonnes, leaving a closing balance of 592 thousand tonnes.

Outlook

As per NFDC, Kharif 2020 started with an inventory of 592 thousand tonnes of urea. The total availability of urea is estimated at around 3415 thousand tonnes comprising of 2823 thousand tonnes of domestic production. The offtake during Kharif 2020 is expected to be around 3048 thousand tonnes. The closing balance for Kharif 2020 is expected to be around 367 thousand tonnes. The offtake of urea and other fertilizers may likely decrease if the impact of COVID-19 and lockdown continue during the coming months.

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