Fertilizers: Urea sales down 11%

LAHORE: Fertilizer numbers for the month of May 2011 has been released by NFDC showing a 6 percent decline in offtake to 2.9mn tons compared to similar period last year.

Despite the fact that other nutrients like CAN and NP increased during the period, the decline is primarily due to lower availability of urea amid gas shortage and delay in imports. Moreover, increase in fertilizer prices by more than 50 percent (both Dap and Urea) also stood as a contributing factor in this decline. During 2011YTD, urea offtake is down 11% to 2.2mn tons while DAP offtake is down by 13 percent to 245k tons.

Only in the month of May 2011, total offtake stood at 643k tons, down 13%YoY. On MoM, though total fertilizer offtake in May 2011 remained almost flat, urea and DAP sales remained lower by 3% and 45% to 473k tons and 30k tons, respectively. Furthermore, with lower urea inventory levels with the manufacturers (only 6 percent of monthly demand), urea prices increased by almost Rs 100 per bag (8%MoM).

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