· Urea sales for Feb’23 clocked in at 502.8k MT, down by 20 %MoM as the Rabi sowing season draws to a close and the urea offtakes witness seasonal decline in-line with the historical pattern. Offtakes for 2MCY23 have clocked in at 1.1mn MT, down a paltry 3%YoY when compared to the 1.2mn MT recorded in the SPLY.

· Urea offtakes for FFC have declined by 7%MoM to clock in at 200.7k MT in Feb’23, while posting a decline of 5%YoY. Furthermore, EFERT has seen a 13% decline on an MoM basis while witnessing an increase of 10%YoY with 186.7k MT sold.

· DAP sales recorded relative stability in Feb’23, remaining flat on a MoM basis despite the average prices of the nutrient increasing in the month. After posting 97.6k MT sold, DAP offtakes have increased 76%YoY.

· Going forward, we expect urea offtakes to decline further in the coming months as the Rabi harvesting season begins. DAP sales should remain relatively stable in next few months owing to the already dampened demand the nutrient is seeing, while a slight uptick can be seen when the Kharif sowing season peaks in June/July.

Courtesy- AKD Research