Fertilizer import up 57% in April-May of FY24

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Import of fertilizers of the main varieties — urea, DAP, MOP and compound — rose by 57 percent in the first two months of FY24, which could help the government avoid a crisis similar to the one seen last year when farmers in many parts of the country protested over shortages.

According to the latest data, imports amounted to 28 thousand tons during the period from April to May of the current fiscal year, compared to 17.87 liters in the previous year. Fertilizer imports decreased by 15 percent during the period from April to May 2022.

An industry expert said, “The import of phosphorous (P) and potash (k) is crucial because the country is almost entirely dependent on buying abroad because domestic production is not in potash and about 20 percent is in phosphorus.” The expert said timely importation is crucial to ensure adequate availability, though sales will depend on rainfall and the progression of the monsoon.

Trade sources said there was a 37 percent increase in the import of urea (nitrogen) to 6.92 liters, a 73 percent increase in diammonium phosphate (DAP) to 10.47 liters, and a 58 percent increase in mouriate potash (MOP) to 4.83 liters . and 56 percent in complex varieties (a mixture of N, P, and K) up to 5.78 L.

Urea sales decline

Although urea sales decreased during April and May as you mentioned Business line Last week, there was a 4 percent increase, both in DAP and complex. The decrease in MOP sales by 23 per cent was due to the higher rate of MOP.

On July 2, the monsoon blankets the entire country, marking its arrival six days earlier than the usual schedule. During the period between June 1 and July 2, the average rainfall nationwide was 166.9 mm. However, this figure falls short of the average of 180.8mm, which is an 8 percent shortfall.

With better rainfall expected over the next week, the pace of cultivation of rice, the primary fall grain crop, is expected to accelerate. This rise in agricultural activity is likely to stimulate demand for urea and other fertilizers.

The Ministry of Agriculture said the sowing of rice decreased by 26.3 percent at 26.55 thousand hectares as of June 30.