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Harish Damodaran

New Delhi, Oct. 7 Consumption of most fertiliser products has declined during the first half of this fiscal — the first time since 2002-03, which was a drought year like the present one.

According to provisionally compiled data from States, urea sales during April-September have been 6.2 per cent lower than the quantity consumed over the same period last year.

Sales of muriate of potash (MOP) and complexes (NP/NPK) have fallen by 14.3 per cent and 4.2 per cent, respectively.

The only major product to have recorded positive sales growth — of almost 10 lakh tonnes (lt) or 19.5 per cent — is di-ammonium phosphate (DAP).

But, according to industry sources, the higher sales may not reflect increased consumption as dealers and farmers could be stocking up ahead of the rabi planting season.

DAP, like other phosphates, promotes root establishment and formation. Its requirement is, thus, primarily at the time of sowing.

Unlike urea, which is used over the crop’s entire growth duration, farmers usually apply DAP as one-time basal dressing of two bags for every acre.

The last couple of years have seen countrywide DAP shortages being reported at the start of the planting seasons (kharif and rabi).

“DAP is of no use to the farmer once sowing is over. And having learnt from recent experiences, nobody wants to take chances. There is, therefore, building up of stocks by dealers and farmers,” said a source, adding that higher sales were more an indicator of “availability” than “consumption”.

The DAP supply position this time has been substantially boosted by imports of around 40 lt by the Indian Farmers’ Fertiliser Cooperative, Indian Potash Ltd and MMTC Ltd.

“The Government has taken special efforts to ensure there will be no shortages of DAP in the coming rabi season.

It hopes to make up the kharif crop losses resulting from the drought through a bumper harvest in the rabi season,” a source pointed out.

With the late monsoon leading to a significant improvement in reservoir water levels and the overall soil-moisture regime, the fertiliser industry, too, is confident of sales picking up during the rabi season.

Domestic fertiliser nutrient consumption grew by 11.4 per cent during 2008-09 on the back of a good monsoon and remunerative support prices for crops announced by the Government.

“We were originally expecting growth of around 6 per cent for this year. The poor kharif season may not enable that to happen. But we are still bullish over rabi prospects,” added the source.

More Stories on : Fertilisers | Alliances & Joint Ventures | Performance

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