India has brought forward a global tender for urea imports and ordered 13.5 lakh tonnes of fertiliser by mid-February. About 90 per cent of this order is expected to arrive by the end of March, the sources said.
Urea, India’s most consumed and heavily subsidised fertiliser, is produced domestically at around 30-31 million tonnes annually, with imports of 6-10 million tonnes bridging demand shortfalls. Production is heavily dependent on natural gas.
India also imports phosphatic fertilisers, including Di-Ammonium Phosphate (DAP) and NPK compounds.
A five-year supply contract with Saudi Arabia for 3 million tonnes of DAP remains intact with “no force majeure,” the sources said.
Supplies of urea, DAP and NPK from Russia and Morocco are flowing uninterrupted via the Cape of Good Hope route.
Spot gas purchases have been approved through EPMC and GAIL, with the first phase of procurement set for completion by Tuesday (March 17). As of March 13, urea stocks stood at around 62 lakh tonnes, approximately 10 lakh tonnes above the year-ago level. DAP stocks nearly doubled to 25 lakh tonnes, while NPK at 56 lakh tonnes hit a record high.
“Comfortable fertiliser stocks are expected before peak kharif demand on May 15,” the sources said, adding that the government was monitoring market discipline and flagging abnormal sales patterns across 652 districts.
With the rabi Winter season concluded and April typically a lean demand month, fertiliser offtake is expected to pick up from May, subject to a normal and timely monsoon.
Average domestic urea output runs at about 25 lakh tonnes per month, though March production is forecast at 17 lakh tonnes as manufacturers advance annual maintenance to optimise gas consumption.
The government has guaranteed at least 70 per cent of the natural gas supply to the fertiliser sector, based on average consumption over the past six months.