Fertilizer offtake increases by 1.7% YoY in January

Fertilizer offtake increases by 1.7% YoY in January

March 01, 2023 (MLN): The country’s over-all nutrient offtake elevated In January 2023 amplified by 1.7% YoY when compared to the identical thirty day period previous 12 months, achieving 407 thousand tonnes, the latest month to month report of fertilizer offtake issued by the Countrywide Fertilizer Advancement Company (NDFC) confirmed.

The offtake of nitrogen observed a rise of 3.7%, with 340 thousand tonnes, whilst the offtake of phosphate decreased by 8.3%, reaching 60 thousand tonnes. Potash offtake lowered by 1.%. Urea offtake increased by 5.6%, reaching 631 thousand tonnes, although DAP offtake observed a lower of 15% when compared to January 2022, with 96 thousand tonnes.

This raise in urea offtake is attributed to the sale of imported urea by NFML, which was readily available at a market retail cost of Rs. 2,440 for every 50 kg bag, as opposed to the regular selling price of Rs. 2,722 in the open up sector.

In accordance to the info, cumulative fertilizer nutrient offtake during Rabi 2022-23 (October-January) was lessen by 4.6% when compared to the exact time frame of very last year’s Rabi 2021-22. The offtake of phosphate and potash lowered significantly by 25.5% and 69.9%, respectively, while the offtake of nitrogen improved by 3.9%.

In phrases of fertilizer goods, the offtake of urea enhanced by 8.4% to 2,477 thousand tonnes during Rabi 2022-23, whilst the offtake of DAP diminished by 29.1% to 561 thousand tonnes in comparison to the similar time frame of Rabi 2021-22.

In January 2023, the full creation of all fertilizer solutions in Pakistan was 613 thousand tonnes, with urea accounting for the the vast majority of creation at 78.2%. The remaining creation involved CAN at 64 thousand tonnes, Nitrophos at 62 thousand tonnes, SSP at 4. thousand tonnes, SOP at .21 thousand tonnes, and a variety of grades of NPK at 3 thousand tonnes.

Moreover, a complete of 8 thousand tonnes of imported materials ended up acquired, comprising 7.6 thousand tonnes of DAP and .5 thousand tonnes of AS.

The price tag of all fertilizers except SSP (granular) elevated in the domestic sector in comparison to the earlier thirty day period. In accordance to data, the prices of urea (sona), urea (other), SOP, NP, NPK’s, and CAN in January rose by 7.5%, 6.7%, 5.6%, 5.3%, 3.1%, and 2.8%, respectively.

Nevertheless, the value of DAP increased by only 1.6%, while the price tag of SSP (granular) lowered somewhat by .6% as compared to the former thirty day period. Meanwhile, in the global sector, the price tag of FOB bulk China urea fluctuated between US $ 410-460/tonne.

FOB Prilled bulk Arabian Gulf selling price was quoted at US $ 380 to 430/tonne. DAP prices in Australia ended up quoted close to US $ 605-660/tonne FOB bulk even though in China market it ranged concerning US $ 635-690/tonne FOB. MAP and TSP price ranges ended up recorded in the selection of $603-623 and 510-600/tonne, respectively through January 2023.

The cost of imported urea was in the assortment of Rs5,671 to Rs6,680 for every 50 kg bag, while the Ex-Karachi value of DAP was in the vary of Rs8,470 to Rs9,328 for each 50 kg bag. Pakistan’s approximated urea availability for Rabi 2022-23 is 3,555 thousand tonnes, in accordance to new knowledge.

The provide consists of an opening balance of 294 thousand tonnes, 2,964 thousand tonnes of domestic creation, and 298 thousand tonnes of imported provides. The projected offtake for the period of time is 3,369 thousand tonnes, leaving 203 thousand tonnes of opening balance for Kharif 2023.

In the meantime, the estimated availability of DAP through Rabi 2022-23 is 1,043 thousand tonnes, with 460 thousand tonnes of opening stock, 299 thousand tonnes of imported materials, and 284 thousand tonnes of domestic generation.

The envisioned offtake of DAP for the period of time is 739 thousand tonnes, resulting in a closing stability of 301 thousand tonnes for Kharif 2023.

The details exhibit that the country’s urea generation capability is remaining totally utilized, with domestic manufacturing accounting for all-around 83.5% of the total availability.

On the other hand, the DAP supply continues to be heavily reliant on imports, which depict about 28.7% of the approximated availability.

The federal government has taken different measures to be certain the timely availability of good quality fertilizers to farmers at very affordable price ranges, together with the provision of subsidies, tariff reductions, and import facilitation.

Province-clever, During the review month, urea offtake lowered by 4% in Punjab. Whilst its offtake elevated by 40%, 2%, and 28% in Sindh, KP, and Balochistan. DAP offtake throughout January 2023 greater in KP and Balochistan by 119% and 105%, respectively, while it lessened by 16% and 30% in Punjab and KP, respectively. 

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Posted on: 2023-03-01T12:16:59+05:00