KARACHI: Fertiliser production during the first five (Jan-May) months of calendar year 2015 (5MCY15) has jumped to 2.871 million tons, up 10% compared to 2.6 million tons in the same period of previous year.
According to recent data published by the National Fertilizer Development Centre (NFDC), urea production for 5MCY15 surged by 6% year-on-year to 2.025 million tons compared to 1.904 million tons in the same period of previous year.
Diammunium Phosphate (DAP) cumulative production also depicted a significant increase of 22% to 281,000 tons in 5MCY15 from 230,000 tons. However, on a monthly basis, overall production increased by a meagre 2,000 tons with decline in urea production by 7% to 389,000 tons during May 2015.
Fertiliser off-take clocked in at 690,000 tons in May 2015 up by 37% month-on-month as compared to 503,000 tons in April 2015. Urea off-take witnessed a growth of 15% year on year to 422,000 tons during May 2015 as against 367,000 tons in the last month.
The DAP volumes also ascended by considerable 62% during May 2015 to 110,000 tons compared to 68,000 tons in April 2015. Off-take of other fertiliser products also increased on a monthly basis. During 5MCY15, cumulative off-take also increased by 11% year on year with 12% and 4% increase in urea and DAP volumes, respectively.
Company wise analysis revealed that all companies during 5MCY15 showed an increase in off-take except for Fauji Fertilizer Bin Qasim (FFBL). The highest contributor was Fatima Fertilizer, which posted an increase of 37% followed by Engro Fertilizer with growth of 16% on year-on-year basis during 5MCY15.
InvestCap Research on Friday reported that during the remaining months of the Kharif season 2015, fertiliser production is expected to increase owing to increase in demand. The import of DAP is forecasted to remain nil in upcoming months of Kharif season. Off-take of fertiliser will also remain on the high level during initial months of upcoming Rabi season.
Published in The Express Tribune, June 27th, 2015.
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