Indian agri-boom amid gloom: Production, sales of fertilisers soar along with area under Kharif crops

Fertilizer sales have seen a phenomenal surge this season despite the economic distress caused by COVID-19 pandemic---a development that comes at a time when the area under cultivation for Kharif crops has grown by 22 per cent this season as compared to last year.

Latest data from the Department of Chemicals and Fertilisers shows record high production as well as sales of fertilizers---some well over 100 per cent as compared to 2019 Kharif season.

The production of urea increase to 244.55 LMT as compared to 240 LMT during 2018-19 while its sales or consumption reached 336.97 LMT as compared to 320.20 LMT of the previous year (2018-19), the ministry said.

According to Chemicals and Fertilisers Minister DV Sadananda Gowda, despite the pandemic, production and movement of fertilisers remain comfortable across the country.

During April to June, the main months of the lockdown, fertilisers production touched 101.15 LMT--- 2.79 per cent higher than the corresponding period last year. The production of urea touched 60.38 LMT, 8.40 per cent higher than the corresponding period last year, as per the ministry.

Compared to 2018-19, sales or consumption of urea in 2019-2020 increased by 5.29 per cent, DAP by 15.67 per cent, MOP by 3.45 per cent and NPKS by 9.95 per cent. In fact, sales or consumption of different fertilisers increased substantially during Kharif 2020 as compared to Kharif 2019. Sale or consumption of urea saw an increase of 63.07 per cent, DAP 108.72 per cent, MOP 62.78 per cent and NPKS of 124.71 per cent.

Backed by good rains and storage in reservoirs, sowing area in the ongoing Kharif season has increased substantially as compared to last year. According to the July-17 data released by the Agriculture Ministry, the sown area is 691.86 lakh ha compared to 570.86 lakh ha area during the corresponding period, last year.

The maximum increase of 40.75 per cent was seen in oilseeds and 32.35 per cent in pulses.