January 23, 2020 (MLN): Urea offtake during the month of December, 2019, stood at 1,345 thousand tonnes, showing an increase of 89.2% due to speculations regarding increase in gas prices..
Total urea availability during month was about 1,549 thousand tonnes, which includes an opening balance of 1,038 thousand tonnes and domestic production of 511 thousand tonnes. Urea offtake during December 2019 was 1,345 thousand tonnes, thus leaving a balance of 204 thousand tonnes for next month.
If the offtake trend continued like in December, 2019, the closed urea plants at SNGPL network will have to be operationalized though subsidized LNG to avoid any shortage of urea.
Urea offtake increased by 89, 85, 73 and 159 percent in Punjab, Sindh, KP and Balochistan respectively, as compared to December 2018.
Rabi 2019-20 started with an opening balance of 470 thousand tonnes of urea. Domestic production during Rabi 2018-19 is estimated around 2843 thousand tonnes. Urea offtake during current Rabi 2019-20 will be about 3005 thousand tonnes, against the total availability of 3,313 thousand tonnes, leaving a closing balance of 306 thousand tonnes for next season.
