Fertilizer off take witnessed a surge by 24% MoM in November 2014 to 977k tons compared to 788k tons in October 2014. This was mainly due to higher urea sales due to higher application by the farmers. Urea sales increased by 15% MoM to 467k tons in November 2014 against 408k tons in October 2014 due to higher Engro sales which rises by 17%. Whereas DAP up by 17.4% MoM at 380k tons versus 324k tons in October 2014.

Urea sales down
The urea sales in Nov’14 totaled to 467k tons against 551k tons in Nov’13, witnessing a decline of 15% YoY due to record buying of dealers in anticipation of surge in urea prices during Nov’13. On a cumulative basis, the urea sales fall by 4.8% during 11MCY14 reached 4,972k tons against 5,221k tons during the similar period in CY13.

DAP sales at 5 year high
DAP sales recorded 5-year high as it increased by 1% to 1,460k tons in 11MCY14 versus 1,453k tons in 11MCY13 due to lower prices which entice farmers for better application. However DAP sales during the month remains weak as it decline by 6% YoY to 380k tons versus 406k tons in Nov’13.

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Azee Research