TAD News Desk, New Delhi: Executive and analysts predict a 10 percent surge in the sale of fertilizers this year due to good soil condition for cultivation and availability of cheap raw materials.
Satish Chandra, the director general of Fertilizer Association of India, a body that represents all fertilizers companies of the country, spoke, “fertilizer sales in rabi season are going to be higher than previous years. The weather and rains have been good this year which will help increase the acreage. Also, the industry has produced more fertilizer during Covid pandemic and there is enough availability in the country.”
K Ravichandran, Group-head corporate ratings at ICRA predicted a 10 percent rise in fertilizer sales than the previous year. He told that several initiatives of government would provide support to farmers and increase their purchasing power which would have a fruitful impact on fertilizer offtake and would meet healthy crop production targets.
The demand of urea would see a surge of 80,000 tonnes, this year than the previous year, as is predicted by IFFCO spoke person.
IFFCO spokesperson told,
“Growth in speciality fertilizers segments is expected to continue. Raw material prices for P&K fertilizers in international markets are slightly up which were earlier down due to Covid-19. Despite the increase, IFFCO had confirmed that they have no plans to increase the MRP for DAP throughout the upcoming rabi season. Urea farm gate prices are controlled by the government and there is no variation in the prices.”
Since the beginning of August, the prices have been stable because of a surge in farmer’s purchases.
Ravichandran said, despite the increase in raw material prices, the price of phosphate fertilizers would remain stable at Rs. 24,000-25,000/tone in the current Rabi season as was announced by the Industry players similar to previous Kharif season. The first half of the 2020-2021 financial year, a surge of 31 percent in retail sales of fertilizers was observed.
Source –The Economic Times
