Fertiliser sales drop by 9% in first quarter

Gas curtailment, high prices take their toll on the sector.

KARACHI:

Total fertiliser sales in the first quarter of 2011 dropped by nine per cent compared with the corresponding period of last year, to stand at 1.7 million tons.

Additionally, figures released by the National Fertiliser Development Centre (NFDC) showed that sales for March were recorded at 548,000 tons, three per cent down from February and flat compared with March 2010.

According to a research note by JS Global Capital, di-ammonium phosphate (DAP) sales registered a 32 per cent year-on-year decline in March to stand at 33,000 tons. This came on account of high prices and delays in shipment of phosphoric acid for Fauji Fertiliser Bin Qasim (FFBL).

FFBL recorded production of 43,000 tons as against sales of 28,000 tons in March. Engro sales, on the other hand, came in low at 1,065 tons as the company imported only 839 tons of the fertiliser.

Urea sales too, declined due to lower production caused by increased gas curtailment to the industry. Sales registered a fall of two per cent year-on-year to 421,000 tons, however, sales grew by two per cent compared with February.

With regard to major fertiliser manufacturers, March saw Fatima Fertiliser’s and FFBL’s urea sales decline by 29 per cent and nine per cent, respectively, when compared with March 2010. Engro, however, witnessed a growth of four per cent in the category.

Published in The Express Tribune, April 29^th, 2011.