· Urea sales for Jan’23 clocked in at 631.3k MT, down by 24%MoM as the Rabi sowing season draws to a close. On the flipside, urea offtakes have increased by 6%YoY, supported by the government led imports which held a market share of 22%.

· Urea offtakes for the largest manufacturers remained flat on the MoM and YoY basis, with EFERT selling 215.4k tons and FFC selling 215.8k tons. Plants running on RLNG faced unavailability of gas during the month, leading to a 17% decline in the production of urea in the month.

· DAP sales recorded a significant decline in Jan’23, declining by 39%MoM despite the average prices of the nutrient remaining stable in the month. After posting 95.8k MT sold for the month, DAP offtakes have witnessed a decline of 15%YoY.

· Going forward, we expect urea offtakes to decline further in the coming months as the Rabi sowing season has drawn to a close. DAP sales should remain relatively stable in next few months owing to the already dampened demand the nutrient is seeing currently.

Courtesy – AKD Research