Fertiliser sales rise 2.4% to 102 lakh tonnes in Q1 FY24
Fertilizer sales increased by 2.5 percent in the first quarter of the current fiscal year, compared to last year, to reach 102.12 thousand tons, as there was a significant increase in demand in June despite the late and short monsoon. As a result, the subsidy in the April-June period is 26 per cent of the budget estimate of Rs 1.75 lakh crore for the 2023-24 financial year. Higher sales may also help fertilizer companies increase their profits, negating any potentially harmful impact on consumption After launching the single “Bharat” brand For all supported crop nutrients.
“All eyes are on July, which saw the maximum sales of fertilizers as this is a crucial sowing window as well as the highest rainfall period during the monsoon season. Rainfall is on the positive side, with the exception of the southern peninsula, consumption is likely to exceed the level seen during July 2022,” said SK Singh, an agricultural scientist. Official data showed that the sale of 66.55 liters of fertilizer in July 2022 is the highest monthly figure during the Khareef season.
During the annual fall conference in May, Union Agriculture Minister Narendra Singh Tomar expressed concern about the increasing use of chemical fertilizers. He wondered why there had been no drop in demand for chemical fertilizers though Nano-urea release and various organic/natural farming schemes. The government recently announced a new PM-PRANAM plan to pass 50 percent of the subsidy that was saved from the chemical fertilizer reduction.
While monsoon rainfall in June was 10 percent lower than normal, there was 15 percent above normal rainfall during the period from July 1 to July 19.
According to data from the Ministry of Fertilizers, urea sales reached 61.83 liters in the April-June 2023-24 period, up 1.6 percent from 60.84 liters a year earlier. The government still hopes to reduce the consumption of traditional urea after the introduction of nano-urea, which is not being subsidized.
Sales of diammonium phosphate (DAP) were up 5 percent to 21.9 liters from 20.86 liters and complex sales (a blend of key nutrients) increased by 5.1 percent to 16.12 liters from 15.34 litres. However, sales of potash murate fell 12 percent to 2.27 liters from 2.58 liters.
imports
Despite the decrease in sales, the import of the Ministry of Planning doubled to 7.92 liters during the first quarter, while the imports of diammonium phosphate recorded an increase of 51.7 percent to 20.88 liters from 13.76 liters, and the import of compound increased by 11.4 percent to 8.57 liters from 7.69 liters. But urea imports, which are controlled by the government, fell 20.8 percent to 11.41 liters from 14.4 litres.
“MOP closing inventories in 2022-23 were slim as sales fell last year, and companies cut their imports. However, it will take some time for MOP sales to return to normal as they remain more expensive than other fertilizers,” said P.
Supply from the Ministry of Planning, of which India is 100 percent dependent on imports, fell 21 percent while sales also fell 33 percent in the last financial year.
support burden
while, Fertilizer support touched Rs.46,236.38 crore – urea Rs.30,201.09 crore; Phosphorus and Potash Rs.16,035.29 crore – during the April-June quarter, while the budget estimate for 2023-24 is Rs.1,75,103.37 crore. The government has imposed, from January 2023, mandatory sales of urea, DAP and MoP under a single brand ‘Bharat’.
The sale of chemical fertilizers is also linked to irrigation, said Ak Singh, former vice-chancellor of Gwalior University of Agriculture, as farmers in irrigated areas use more nutrients for crops than those in rainfed areas. He added that the share of irrigated areas, most of which are from groundwater sources, is rising every year, as is the consumption of fertilizers.
“Unless the availability of organic fertilizer is increased, the use of chemical fertilizers may not be reduced,” Singh said, adding that the Indian Council of Agricultural Research (ICAR) has long recommended the use of 25 percent biofertilizer.