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India Fertilizer & Agri Scenario: September 2021

NPK Production during April-September up by 9.6%; however, Urea and DAP Production have dipped by 4% and 27% over last year corresponding Period (Apr-September).

Imports of Urea, DAP, MOP and NPK were decreased by 11% , 43%, 62% and 21.5% respectively over last year corresponding Period (Apr-September. Hike in international fertilizer import price impacted imports drastically.

Sale of Urea, DAP MOP and NPK were dipped by 8%, 35%, 39% and 1.9% over last year corresponding Period (Apr-September).

Source: DOF

PAN India urea sales deficit by 8% (1.3 million tons). Maximum hit is in east zone which is deficit by 19% (o.4 million tons), followed by west zone by 15%(0.7 million tons).

Source: DOF

PAN India DAP sales deficit by 35% (2.2 million tons). Maximum hit is in north zone which is deficit by 47% (1.0 million tons), followed by west & east zone by 35% (0.9 & 0.3 million tons) and South zone by 10% (0.1 million tons) 

PAN India MOP sales deficit by 39% (0.7 million tons). Maximum hit is in east zone which is deficit by 51% (0.2 million tons), followed by north & south zone by 40% (0.1 million tons) & 41% (0.3 million tons) and west zone by 24% (0.1 million tons).

PAN India NPK sales dipped by just 2% (0.1 million ton). East & West zone sales decreased by 9% (0.07 Million tons) and 10% (0.22 million tons). However increase is reported in South zone by 1% (0.03 million tons).

India’s Fertilizer Subsidy Expenditure till August’21

India fertilizer subsidy expenditure till August’21 is INR 40178 Crores which is 48% of total subsidy budget, excluding additional subsidy budget of INR 14475 Crores for P & K fertilizers.

Government of India has fully paid fertilizer subsidy up to August’21.

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India’s Urea Projects Progress till August’21

HURL Gorakhpur urea project have achieved more than 93% progress and expected to commission in December’21 as per report. HURL Barauni and Sindri projects achieved more than 90% progress and expected to commissioned in FY; 2021-22Ramagundam Fertilisers and Matix Fertilisers And Chemicals Limited have recently started their commercial production.

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Forex shown little bit up trend over August’21.

Crude oil (WTI) price in India shown upward trend over last month.

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International Fertilizer Price September’21 Update

US DAP Spot Price (Gulf) is consolidating with a increase of 6.7% at US $ 643.75 per ton, in the month of September, 21. Morocco Rock Phosphate Price is US $ 147.5 per ton with a hike of 7.76%, Henry Hub Natural Gas Price have drastically increased to a level of US $ 5.94 per MMBTu with a hike of 37%, however, Black Sea Urea Price have dipped to US $ 418.75 per ton in September’ 21.

International Urea Monthly Spot Price (Black Sea)

Black Sea Urea Price for September’ 21 is US $ 418.75 per ton, dip by 6.29% from August’21 price, however it is 167% more than last year during same month (September’ 2020 – US $ 250.5 per ton).

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US DAP Monthly Spot Price (Gulf)

US DAP Spot Price (Gulf) for September’ 21 is US $ 643.13 per ton with increase of 6.7% than August’ 21 prices of US $ 603.13 per ton and 180% more than last year during same month (September’ 20 – US $ 358.38 per ton).

Morocco Rock Phosphate Monthly Spot Price

Morocco Rock Phosphate Price for September’ 21 is US $ 147.5 per ton, which is up by 7.76% than August’ 21 prices, however 186% more than last year during same month (September’ 2020 – US $ 79.38 per ton)

Henry Hub Natural Gas Monthly Spot Price

Henry Hub Natural Gas Price for September’ 21 is US $ 5.94 per MMBTu which is 37.18% more than August’ 21 prices of US $ 4.33 per MMBTu and 309% more than last year during same month (September’ 20 – US $ 1.92 per MMBTu)

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Kharif crop sowing deficit by 9.3 lakhs ha (0.89%) over last year, as on 30th September in India.

Major shortfall is in cotton by 5.76% (7.3 lakh ha), total coarse cereals by 2.32% (4.14 lakh ha), total oil seeds by 1.27% (2.58 lakh ha) and paddy sowing is almost same (414 lakh ha), however sunflower area increased by 23% (0.28 lakh ha), Sugarcane by 1.65% (0.9 lakh ha) and Jute by 1.01% (0.07 lakh ha).

India (-1%) has received normal rains. The live storage available in 130 reservoirs is 92% of the live storage of corresponding period of last year and 104% of storage of average of last ten years.