fertilizer: Fertilizer sales likely to rise as crop area expected to expand


New Delhi: Fertilizer sales are expected to increase by 10% this winter season because of good soil condition for cultivation and stable prices of raw material, executives and analysts said.

“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, ” said Satish Chandra, director-general of the Fertilizer Association of India, a body representing all fertilizer companies in the country.

Sales in the season will be 10% higher than the previous year, said K Ravichandran, group head-corporate ratings at ICRA. “The healthy crop production targets and several initiatives by government are also expected to provide support to the purchasing power of the farmers which will have a positive effect on the fertiliser offtake, ” he said.


Indian Farmers Fertiliser Cooperative Ltd (Iffco) spokesperson said, the estimated demand for urea is 18.3 million tonne, which is 80,000 tonne higher than 2019.

“Growth in specialty 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 farmgate prices are controlled by government and there is no variation in the prices, ” the spokesperson said.

Farmers have started making purchases beginning August and with stable prices, the sales were increasing.

“Prices of phosphatic fertilisers are expected to remain stable at Rs 24,000-25,000 per tonne in the current rabi season similar to the kharif season as announced by the industry players despite increase in the raw material prices,” said Ravichandran.

In the half of 2020-21,retail sales of fertilizer rose 31% over last year.

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