Urea offtake jumps by 24% in Sept’21

October 26, 2021 (MLN): Urea offtake during Kharif 2021 (April- September) was 3258 thousand tonnes, which increased marginally by 2.2 percent against 3188 thousand tonnes recorded in Kharif 2020.

As per a monthly report issued by National Fertilizer Development Centre (NFDC), urea offtake during September 2021 was 487 thousand tonnes, which jumped by 24 percent over September 2020.

While the price of urea (sona) and urea (other) in the domestic market during the said month increased by 1.6 and 1.9 percent, respectively over August 2021.

In the international market, the urea prices were quoted at US $ 395-550/t fob bulk China against US$403-462/t of the previous month. Arabian Gulf bulk urea reached a level of US$ 430-620/t.

Province-wise, urea offtake increased by 4, 123 and 114 percent in Punjab, Sindh and Balochistan respectively, however, its offtake decreased by 22 percent in KP.

Kharif 2021 started with an inventory of 298 thousand tonnes of urea. Total availability of urea (including 3106 thousand tonnes of domestic production) was about 3404 thousand tonnes
against the offtake of 3258 thousand tonnes, leaving an inventory of 116 thousand tonnes for Rabi 2021-22.

Outlook

The total availability of urea during Rabi 2021-22 is estimated as 3363 thousand tonnes which include 116 thousand tonnes of opening balance, 100 thousand tonnes of imported supply and 3,147 thousand tonnes of domestic production. The offtake of urea is estimated at around 3195 thousand tonnes. Closing inventory of urea from December onward reflects a very tight
situation.

The Government should ensure the provision of at least 63 MMSCFD of gas to the FFBL plant for additional production (60 kt of urea) and import of 100 thousand tonnes of urea on fast track basis to combat shortage during Rabi 2021-22, the report said.

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