The top ten states in India dominate the Urea PoS sales, accounting for a staggering 81.52% share, with a total of 29.4 million tons out of the country’s overall Urea PoS sales of 36.1 million tons. Surpassing previous records, India witnessed a remarkable 5.5% increase in Urea PoS sales during FY’2022-23, reaching 1.9 million tons extra and contributing to the overall consumption of 36.06 million tons, compared to 34.2 million tons in FY’2021-22. The states ranking 11th to 20th make a notable contribution of 17.97% to India’s Urea PoS sales.
However, 11 states with urea consumption below one lakh tons per year contribute a mere 0.51% to the overall sales. It is worth mentioning that five states in India either focus on organic farming practices or have zero consumption of urea.
Among the zones, the West zone emerged as the topper, capturing the largest increase in variation of 12.2% with 1.3 million tons addition. On the other hand, the North zone lagged behind with the lowest share of 1.4% in variation, representing a mere 0.2 million tons extra in Urea PoS sales over previous year.
In the fiscal year 2022-23, the top ten states experienced a significant 6.1% surge in Urea PoS sales, reaching an impressive 16.9 lakh tons extra compared to the previous year. In contrast, the states ranked 11th to 20th witnessed a modest growth of 2.6% with 1.7 lakh tons addition in Urea PoS sales during FY’2022-23.
Notably, despite their relatively low consumption, the 11 states with urea consumption below one lakh tons demonstrated the highest variation rate of 11.2%. However, in terms of volume, their contribution remained negligible at just 0.2 lakh tons.
Western India experienced a remarkable growth rate of 12.2% in urea purchase, indicating it as a potential market for future growth. Southern India also demonstrated a significant increase of 4.5%. These regions hold promise as key areas for focusing on urea production to meet the growing consumption demands. The observed trend suggests that attention should be directed towards the west and south regions to bridge the production-consumption gap and capitalize on their growth potential in the urea market.