During the month of May’21, data for provisional fertilizer offtake show that urea offtake portrayed a significant growth of 109% YoY to 502k tons against 240k tons in SPLY given a low base impact since lockdown was imposed last year, constraining movement nationwide. Pertinently, FFC and FFBL sales witnessed a massive surge of by 82% YoY while EFERT and FATIMA posted 98% and 14x YoY growth respectively. Similarly, on a MoM basis, urea sales showcased a healthy growth of 62%, which is mainly attributable to jump in demand during the ongoing Kharif season, where urea offtake of FFC and FFBL cumulatively, EFERT and FATIMA were up by 48%, 85% and 74%, respectively. On a cumulative basis, urea sales climbed up by 47% YoY during 5MCY21, arriving at 2,209k tons. The company-wise urea sales data depicts that EFERT witnessed a hefty growth of 2x YoY, settling at 915k tons, while sales volumes of FFC and FFBL combined and FATIMA portrayed a jump of 13% and 7% YoY, respectively.

DAP offtake jumps up by 108% YoY/ 15% MoM in May’21

DAP sales displayed a substantial jump of 108% YoY / 178% MoM to 127k tons during May’21. Meanwhile, during 5MCY21, DAP offtake depicted a growth of 15% YoY, settling at 487k tons. On a company specific basis, DAP sales of FFC and FFBL arrived at 99k tons in May’21, depicting a YoY and MoM jump of 32% and 9%, respectively. During 5MCY21, FFC and FFBL’s DAP sales surged by 47% YoY to 334k tons. Whereas, EFERT’s DAP sales recorded a huge growth of 147% YoY and 10x MoM during May’21 to 27k tons. Likewise, during 5MCY21 EFERT’s DAP offtake climbed up by 12% YoY to 84k tons.

Inventory position

Towards the end of May’21, closing inventory of urea with local manufacturers stands at 619k tons vis-à-vis 531k tons in Apr’21. Moreover, inventory position for DAP is set at 82k tons at the end of May’21.

Courtesy – AHL Research