India fertilizer sales remain strong in July

Date:07-15-2020

Total sales of fertilizers — urea, DAP, NPKs, SSP and MOP — stood at 3.53mn t on 1-13 July, the latest provisional data show. Sales in the whole of July last year reached 6.85mn t (see chart).

Solid agricultural fundamentals, with record crop production forecasts this year and expectations of a solid monsoon season in June-September, have underpinned the continued rise in sales. Increased crop acreage for India's summer kharif season, which runs from April-September, has encouraged farmer offtake.

In January-June, total fertilizer sales in India rose by 45pc on the year to 26.8mn t. The key drivers behind the increase were phosphate-based products. Offtake of DAP and NPKs rose to 3.98mn t and 4.9mn t, up by 81pc and 82pc, respectively. Sales of urea, the most consumed fertilizer in India, rose by 31pc to 14.78mn t.

Expectations for this year's monsoon season have continued to propel sales. India's meteorological department raised its projections for the monsoon on 1 June to 104pc of the long-term average of 88cm. National rainfall averaged 313.7mm as of 13 July, up by 12pc on the long-term mean.