LAHORE - Latest National Fertilizer Development Centre’s (NFDC) report shows that total fertilizer sales in April declined significantly by 30 per cent to 448k tons. Urea sales witnessed a significant decline of 37 per cent to 308,000 tons with local fertilizer manufacturers sales coming down by 63 per cent to 151,000 tons while imported urea offtake was recorded higher by 91 per cent at 157,000 tons. The decline in local fertilizer manufacturers’ offtake was primarily attributable to availability of govt’s subsidized imported urea. On the other hand, DAP sales increased by 10 per cent YoY to 60k tons during the same period, owing to stabilizing local prices.

Urea production during April declined by 6 per cent MoM as plants on the SNGP network remained closed. However, the closing inventory of urea was recorded at 936k tons of which 768k lies with the local manufacturers. FFC and ENGRO had a closing inventory of 368k tons and 238k tons, respectively. It was for this reason that the local manufacturers had reduced urea prices recently so as to get rid of the piled up inventory. As far as the offtake is concerned urea sales declined significantly by 37 per cent YoY to 308k tons, while on a MoM basis sales actually increased by 17 per cent. Urea sales for local fertilizer manufacturers declined by 63 per cent YoY to 151k tons, whereas imported urea offtake was recorded higher by 91 per cent YoY at 157k tons. Availability of government’s subsidized urea was the main factor behind the decline in local fertilizer manufacturers’ offtake. Cumulative 4M2012 offtake came in at 1.3mn tons compared to 1.7mn tons, down 22 per centYoY.

Company wise break-up showed that urea offtake of FFC, ENGRO, FFBL and FATIMA all witnessed a decline in the respective offtakes.

Their sales were down 65 per cent, 68 per cent, 62 per cent and 94 per cent respectively to 75k tons, 30k tons, 19k tons and 1k ton in April.