Fertiliser demand rebounds with revival in kharif sowing; urea continues to dominate sales
Following a sluggish start to the season due to weather patterns, fertiliser demand in India has seen a sharp surge in July, with urea maintaining its dominant market position.
Following a period of slowdown driven by unfavorable weather conditions in May and June, fertiliser demand in India began to recover strongly in the first half of July. This upward trend is directly correlated with the acceleration of the kharif sowing campaign, which gained momentum following the arrival of long-awaited monsoon rains.
According to the latest data, fertiliser sales reached 41.09 lakh tonnes (lt) by July 17. This figure is highly significant, considering the estimated demand for the entire month is projected at 74.28 lt. Consequently, more than half of the projected monthly demand was fulfilled in just over two weeks of July.
Urea remains the dominant component in farmers' purchasing patterns, accounting for nearly two-thirds of total sales. It recorded 25.86 lt in sales against a monthly forecast of 41.67 lt. Other fertiliser categories performed as follows: di-ammonium phosphate (DAP) saw 5.74 lt in sales (against a 12 lt projection), Muriate of Potash (MoP) reached 1.07 lt (against 3.54 lt), and complex fertilisers reached 8.42 lt (against 17.07 lt).
Experts highlight that the demand recovery was facilitated by improved conditions for sowing paddy, cotton, and maize. As of July 31, the sowing deficit for paddy had narrowed to 2%, compared to 9% earlier in the month. According to agricultural scientist S.K. Singh, provided that favorable rainfall forecasts hold for August, fertiliser consumption is expected to rise further in line with the pace of field operations.
The Ministry of Agriculture has already published its demand projections for August, which include 38.01 lt of urea, 9.81 lt of DAP, and other types of nutrients. Despite the current recovery, total sales for the first quarter (April-June) were 5% lower than last year, totaling 115 lt, which is attributed to both a weak June and government measures designed to curb excessive purchases.