Damper view: Fertiliser sales go up by 42%

Data reveals April figures lowest, pattern emerges.


Our Correspondent May 27, 2015
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KARACHI: Fertiliser sales in April 2015 marked a significant jump to 366,000 tons, up by 42% compared to 258,000 tons in April 2014, according to data compiled by the National Fertilizer Development Centre.

Similarly, diammonium phosphate (DAP) offtake during April 2015 showed an uptick as sales improved by 41% month-on-month and 78% year on year to 67,000 tons.

However, casting a shadow on the increase, the figures looked less than impressive when pitted against the Ministry of National Food Security and Research’s estimated urea demand average of 500,000 tons per month during the current Kharif season, AKD Research said.

Pinpointing a reason

The research observers that this less than average sale of fertiliser does not come as a surprise since the sector has developed a pattern of sorts in the last few years.

AKD Research stretched its analysis until calendar year 2001 where over the last 14 years (excluding current year), there have been nine instances where urea offtake in April has remained at its lowest level in comparison to other 11 months, the report added.

Ruling out the possibility of the Kharif season being the main reason for the decline, the reports says the sowing season does not reach its full swing until mid-May, which is the time when cotton crop is sown. Consequently, such dull showing by fertiliser sector in April 2015 is as an effect of seasonality more than anything else.

Overall, fertiliser availability sits in a comfortable position where recently the Economic Coordination Committee (ECC) approved the proposal moved by the Ministry of Industries and production for the import of additional 150,000 tons of urea fertiliser for the Kharif season.

To recall, the ECC in its meeting on April 23, 2015 had allowed the import of 100,000 tons of urea. Additionally, import has been allowed with a view to bridge the demand and supply gap and building up sufficient buffer stock.

Published in The Express Tribune, May 28th,  2015.

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