Engro Fertilisers made its fortunes by selling urea at old prices as opposed to Fauji Fertiliser which increased prices by Rs70 to Rs80 per bag in March, an analyst said. PHOTO: FILE
KARACHI: Urea sales rose 19% to 408,000 tons in March 2019 on a year-on-year basis, according to latest data released by the National Fertiliser Development Corporation (NFDC).
Sales of urea had been recorded at 342,093 tons in the same month of previous year.
On a month-on-month basis, the sales of urea increased 5% to 408,000 tons in March compared to 388,000 tons in February 2019. “Fertiliser sales display a positive trend as the Kharif sowing season kicks in,” stated Aba Ali Habib Securities in its report. “However, the off-take of di-ammonium phosphate (DAP) fertiliser plunged 56% year-on-year.”
Company-wise, Engro Fertilisers recorded the largest growth in urea sales of 64% to 147,119 tons in March 2019 against 89,833 tons in the same month of previous year.
DAP sales of the company also swelled 44% to 28,500 tons compared to 19,812 tons last year. Fauji Fertiliser reported only 1% growth in urea sales during the month under review. Its sales inched up from 193,219 tons in March 2018 to 194,299 tons in March 2019.
In DAP sales, the company witnessed a drastic fall of 70% to 9,560 tons in March this year against 31,459 tons in March 2018. Fauji Fertiliser Bin Qasim reported a sharp decline in urea sales of 78% to 10,485 tons in March 2019 against 47,149 tons in March 2018.
Same was the case in the DAP segment of the company as sales plunged 78% to 15,245 tons against 69,864 tons last year. “Engro Fertilisers made its fortunes by selling urea at old prices as opposed to Fauji Fertiliser which increased prices by Rs70 to Rs80 per bag in March. Engro Fertilisers raised its prices in April, data for which will be released next month,” said Topline Securities’ analyst Shankar Talreja. “Dealers started hoarding urea as they were aware that if one player had increased prices, others would follow.”
Fatima Fertiliser recorded a growth of 6% in urea sales that stood at 12,495 tons against 11,802 tons last year.
“Going forward, we believe that the demand for plant nutrients is set to grow on the back of continuation of the sowing season and greater demand for agriculture exports to China as part of the free trade agreement,” said Aba Ali Habib’s report.
Published in The Express Tribune, April 26th, 2019.
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