May 28, 2014- BR Report –
Urea offtake stood at 258,000 tons in April 2014, down by 18 per cent (YoY) and 33 per cent (MoM) mainly primarily due to excess availability of urea with dealers/farmers and reduced the demand before the start of Kharif season. According to National Fertilizer Development Centre (NFDC), urea offtake in the first four months of this calendar year (4M2014) settled at 1.639 million tons, down marginally by 1 per cent YoY.
“Lower decline in cumulative four months numbers was reflective of high urea demand in January 2014, which was recorded on the higher side vs. the historical average,” said JS global. Post January, urea offtake has witnessed a continuous decline during the last three months. With these numbers in the bag, urea inventory stands at 532,000 tons as of end April 2014, where the NFML holds 66 per cent of the inventory, it added.
Meanwhile, the DAP sales, too, remained depressed and clocked in 27 per cent (YoY) and 48 per cent (MoM) lower at 38,000 tons in April 2014. As a result, year to date 2014 the DAP sales came in at 239,000 tons up by 24 per cent YoY. “A closer look at company-wise numbers for April 2014 also revealed an overall negative trend for local urea producers. With the exception of the FFBL, the big three companies (ENGRO, FFC and FATIMA) witnessed lower sales on a MoM basis,” it informed.