monthly a fertilizer u update g
TRANSCRIPT
3August 2021 | J. M. Baxi & Co. FERTILIZER Update
Port Anlaysis
Fertilizers Traffic At Indian Ports (Qty In Million Tonnes)
Fertilizers traffic at Indian Ports- August 2021 (Qty in Million Tonnes)
Major Country-wise Fertilizers Imports August 2021 (Qty in Million Tonnes)
MAJOR FERTILIZER IMPORTERS August 2021 (Qty in MILLION TONNES)
Market Overview And Trends
Highlights
Contents
Disclaimer: The information contained in this market update is drawn from wide range of newspapers, business and trade magazines,
government, company and industry association websites. While all possible care is taken to verify the correctness and authenticity of
information contained in this compilation, no claim to independent authorship of articles is implied or intended. Readers are expected
to make their own independent evaluation and verification of information for their use. While all information contained in this report
are believed to be correct, the editors of this compilation or J. M. Baxi & Co. do not guarantee the quotes or other data and the same is
provided only in good faith.
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Fertilizers traffic at Indian Ports (Qty in Metric Tonnes)
PORT NAME APRIL-JUNE - 21
APRIL-JUNE - 20 VARIANCE Y - O - Y
ANGRE 0 22000 -22000
BEDI 314093 464430 -150337
CHENNAI 58302 49780 8522
COCHIN 97350 0 97350
DAHEJ 132499.4 114250 18249.35
DHAMRA 77000 77968 -968
DHARAMTAR 36750 0 36750
GANGAVARAM 107500 171000 -63500
HALDIA 121998 95892 26106
HAZIRA 430726 345328 85398
JAIGAD 111060 0 111060
KAKINADA 568384 918815 -350431
KANDLA 902964 801477.4 101486.6
KARAIKAL 65854.11 90000 -24145.9
KARWAR 16500 -16500
KOLKATA 30000 0 30000
KRISHNAPATNAM 214866 368518.6 -153653
MANGALORE 128690.6 145325 -16634.4
MORMUGAO 11000 0 11000
MUMBAI 184910 83000 101910
MUNDRA 893849 970632 -76783
PARADIP 940195 1288213 -348018
PIPAVAV 257465.9 214597 42868.94
SANDHEADS 2700 0 2700
TUNA 200008 186474 13534
TUTICORIN 235552 342042 -106490
VISAKHAPATNAM 955952 636934 319018
Grand Total 7079669 7472275 -392606
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J. M. Baxi & Co. FERTILIZER Update | August 20216
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Fertilizers traffic at Indian Ports July - 2021 (Qty in Metric Tonnes)
Port Cargo QTY IN MT
BEDISULPHUR 50000
UREA 42800
CHENNAIROCK PHOSPHATE 10000
SULPHUR 7000
DAHEJ UREA 120244
DHARAMTAR MONO AMMONIUM PHOSPHATE 31500
GANGAVARAMGRANULATED NPK FERTILIZER 32000
UREA 63000
HALDIA ROCK PHOSPHATE 25313
HAZIRA ROCK PHOSPHATE 368522
JAIGAD UREA 44000
KAKINADADI AMMONIUM PHOSPHATE 146950
MURIATE OF POTASH 31060
KANDLA
DI AMMONIUM PHOSPHATE 91000
MURIATE OF DI PHOSPHATE 55000
MURIATE OF POTASH 34000
UREA 96000
KRISHNAPATNAM
AMMONIUM PHOSPHATE SULPHATE 26908
DI AMMONIUM PHOSPHATE 121090
NITROGEN PHOSPHORUS SULPHER 30231
ROCK PHOSPHATE 22000
UREA 63000
MANGALOREROCK PHOSPHATE 25000
UREA 44650
MORMUGAO MURIATE OF POTASH 25000
MUMBAI
BIOFOS MONOCALCIUM PHOSPHATE 22000
MONO AMMONIUM PHOSPHATE 31500
N K P FERTILIZER 22000
7August 2021 | J. M. Baxi & Co. FERTILIZER Update
MUNDRA
DI AMMONIUM PHOSPHATE 409949
MURIATE OF POTASH 19994
UREA 173346
PARADIPROCK PHOSPHATE 221250
SULPHUR 70008
PIPAVAVDI AMMONIUM PHOSPHATE 63536
UREA 51211
TUNA MURIATE OF DI PHOSPHATE 55000
TUTICORINMURIATE OF POTASH 33000
N K P FERTILIZER 27000
VISAKHAPATNAM
AMMONIUM NITRATE 30023
GRANULATED NPK FERTILIZER 60916
MOLTEN SULPHUR 7000
ROCK PHOSPHATE 41480
SULPHUR 30300
Grand Total 2975781
J. M. Baxi & Co. FERTILIZER Update | August 20218
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COUNTRIES CARGO JULY - 2021
ALGERIA ROCK PHOSPHATE 51480
AUSTRALIA UREA 72000
BULGARIA AMMONIUM NITRATE 30023
CANADA MURIATE OF POTASH 51054
CHINA DI AMMONIUM PHOSPHATE 406601
UREA 277810
EGYPT GRANULATED NPK FERTILIZER 92916
ROCK PHOSPHATE 25000
INDONESIA AMMONIUM PHOSPHATE SULPHATE 26908
ROCK PHOSPHATE 95000
UREA 48244
ISRAEL MURIATE OF POTASH 33000
JAPAN MOLTEN SULPHUR 7000
JORDAN ROCK PHOSPHATE 163575
MOROCCO DI AMMONIUM PHOSPHATE 113549
ROCK PHOSPHATE 159750
OMAN UREA 54911
QATAR SULPHUR 37300
SAUDI ARABIA DI AMMONIUM PHOSPHATE 221375
NITROGEN PHOSPHORUS SULPHER 30231
U.A.E. N K P FERTILIZER 27000
SULPHUR 70008
UKRAINE UREA 105286
UNITED STATES UREA 44000
NITRO PHOSPHATE 56215
SAUDI ARABIA AMMONIUM PHOSPHATE SULPHATE 26387
DI AMMONIUM PHOSPHATE 80905
NITROGEN PHOSPHORUS POTASH 33000
SINGAPORE AMMONIUM NITRATE 1998
TOGO ROCK PHOSPHATE 98589
Major Country-wise Fertilizers Imports July - 2021 (Qty in Metric Tonnes)
9August 2021 | J. M. Baxi & Co. FERTILIZER Update
MAJOR FERTILIZER IMPORTERS JULY - 2021 (Qty in METRIC TONNES)
IMPORTERS Cargo July 2021
ADANI ENTERPRISES LTD. ROCK PHOSPHATE 95000
BLACK DIAMOND AMMONIUM NITRATE 16000
CHAMBAL FERTILISERS AND CHEMICALS LTD. DI AMMONIUM PHOSPHATE 146011
CHEM EDGE GLOBAL PVT. LTD. MONO AMMONIUM PHOSPHATE 31500
CORAMANDAL ROCK PHOSPHATE 25000
COROMANDAL FERTLIZERS LTD.
AMMONIUM PHOSPHATE SULPHATE 26908
DI AMMONIUM PHOSPHATE 68090
ROCK PHOSPHATE 10000
UREA 63000
COROMANDEL INTL. LTD.
DI AMMONIUM PHOSPHATE 53350
MOLTEN SULPHUR 7000
MURIATE OF POTASH 10236
ROCK PHOSPHATE 41480
SULPHUR 30300
GRASIM INDUSTRIES LTD. UREA 72000
GUJARAT STATE FERTILIZERS CO. LTD. UREA 42800
IDL EXPLOSIVES LTD. AMMONIUM NITRATE 14023
INDIAN FARMERS FERTILISER COOP. LTD.
ROCK PHOSPHATE 167950
UREA 224557
INDIAN POTASH LTD.
DI AMMONIUM PHOSPHATE 276641
GRANULATED NPK FERTILIZER 32000
MURIATE OF POTASH 53824
UREA 63000
U.A.E. SULPHUR 83334
UKRAINE UREA 54599
UNITED KINGDOM DIHYDRATE POLY HALITE 30000
J. M. Baxi & Co. FERTILIZER Update | August 202110
KRIBHCO FERTILIZERS LTD.
DI AMMONIUM PHOSPHATE 36000
GRANULATED NPK FERTILIZER 60916
KRISHAK BHARATI CO OP LTD.
DI AMMONIUM PHOSPHATE 87997
NITROGEN PHOSPHORUS SULPHER 30231
KRISHK BHARTI FERTILIZER LTD. N K P FERTILIZER 27000
LAXMI GANESH AGRO ROCK PHOSPHATE 22000
MANGALORE CHEMICAL AND FER-TILIZERS LTD. UREA 44650
MOSAIC INDIA PVT. LTD. MURIATE OF POTASH 19994
NARMADA BIO CHEM PVT. LTD. UREA 44000
NATIONAL FERTILIZERS CO. LTD. DI AMMONIUM PHOSPHATE 27536
PARADIP PHOSPHATES LTD.
MURIATE OF POTASH 25000
ROCK PHOSPHATE 53300
SWISS SINGAPORE INDIA PVT. LTD. DI AMMONIUM PHOSPHATE 45900
11August 2021 | J. M. Baxi & Co. FERTILIZER Update
12Jan 2020 | J. M. Baxi & Co. FERTILIZER Update
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J. M. Baxi & Co. FERTILIZER Update | August 202112
HIGHLIGHTS
India’s urea import rises 8% to 98.28 lakh tonnes in 2020-21
Fertiliser shortage looms as global prices skyrocket
Fertiliser subsidy, import up in 3 years
02
03
01
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J. M. Baxi & Co. FERTILIZER Update | August 202114
Fertiliser sales down on erratic monsoon rains
04
15August 2021 | J. M. Baxi & Co. FERTILIZER Update
The Indian farming sector has seen an increase in the subsidy and import of fertilisers in the last three years. In a reply in Lok Sabha on Tuesday, Mansukh Mandaviya, Union Minister for Chemicals and Fertilisers, said the total amount of subsidy disbursed on fertilisers increased to ₹1.31 lakh crore in 2020-21 against ₹83,467 crore in 2019-20. It was at ₹73,435 crore in 2018-19. Import of urea increased to 98.28 lakh tonnes (lt) in 2020-21 from 91.23 lt in 2019-20 and 74.81 lt in 2018-19. The import of NPK increased to 13.90 lt in 2020-21 against 7.46 lt in 2019-20 and 5.46 lt in 2018-19. During 2020-21, the import of MOP and DAP increased to 42.27 lt (36.70 lt in 2019-20), and 48.82 lt (48.70 lt), respectively.
Use of bio-fertilisersTo a separate query on the use of bio-fertilisers and pesticides, Narendra Singh Tomar, Union Minister for Agriculture and Farmers’ Welfare, said bio-fertilisers are promoted through integrated nutrient management and are made integral part of package of practices developed by ICAR and state agriculture universities. The consumption of chemical pesticides
increased from 59,699 tonnes in 2018-19 to 61,701 tonnes in 2019-20, and to 62,192 tonnes in 2020-21. To a query on the complaints of presence of harmful chemicals in food items, Tomar said the Food Safety and Standard Authority of India (FSSAI) has fixed the Maximum Residue Limits (MRLs) for various pesticides, antibiotics, etc in food commodities under Food Safety and Standards (Contaminants, Toxins and Residues) Regulations 2011, which are reviewed from time to time. Further, samples of vegetables, fruits and other crops are collected from the retail outlets, markets, farm gate, etc under a central sector scheme — ‘Monitoring of Pesticide Residues at National Level’ — and analysed for pesticide residues. From the analysis of a total of 1,72,437 samples of various food commodities during April 2014 to March 2021, residues were found exceeding above MRLs in 4,680 (2.7 per cent) samples. Reports of such instances were shared with concerned State governments to take appropriate legal and corrective actions as per the provisions of the Insecticides Act 1968, he said
Source: The Hindu Business Line
Fertiliser subsidy, import up in 3 years01
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Subsidy disbursed on fertilisers increased to ₹1.31 lakh crore in 2020-21, while urea imports increased to 98 lakh tonne
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J. M. Baxi & Co. FERTILIZER Update | August 202116
Various companies import these fertilisers as per their commercial judgement
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Source: Livemint
Chemicals and Fertilisers Minister Mansukh Mandaviya said the urea imports rose to 98.28 lakh tonnes in 2020-21 from 91.23 lakh tonnes in 2019-20. “Import of fertilisers (other than urea) is free, commonly known as Open General Licence (OGL). Various companies import these fertilisers as per their commercial judgement,” he said. According to data shared by the minister, urea imports rose to 98.28 lakh tonnes in 2020-21 from 91.23
lakh tonnes in 2019-20. Di-ammonium phosphate’s (DAP) imports stood almost flat at 48.82 lakh tonnes in 2020-21, against 48.70 lakh tonnes in the previous year. Imports of MoP (Muriate of Potash) rose to 42.27 lakh tonnes, from 36.70 lakh tonnes; while imports of NPK fertilisers increased to 13.90 lakh tonnes from 7.46 lakh tonnes.
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India’s urea import rises 8% to 98.28 lakh tonnes in 2020-21
02
Fertiliser shortage looms as global prices skyrocket
03
Supply crunch may hit during rabi
season ahead of UP, Punjab polls.
A shortage of fertilisers is looming on the back of skyrocketing international prices whose effects, it is feared, may be felt during the coming rabi season ahead of the February-March Assembly elections in Uttar Pradesh, Punjab and Uttarakhand. The supply crunch is due to the overall bullish global agri-commodity markets, a “temporary suspension’ of exports by China and western economic sanctions against Belarus. Industry data accessed by The Indian Express shows imports of all major fertilisers by India falling during April-July 2021 over April-July 2020. That includes urea (down from 23.43 lakh tonnes to 22.05 lakh tonnes), di-ammonium phosphate (24.06 lt to 22.03 lt), muriate of potash (16.06 lt to 10.33
lt) and complex fertilisers (6.43 lt to 5.45 lt). But it isn’t only imports. Even domestic production has been lower for urea (78.82 lt in April-July 2021 against 82.18 lt in April-July 2020) and di-ammonium phosphate (11.11 lt against 12.66 lt). It has, however, gone up for fertilisers having lower nitrogen (N), phosphorus (P), potassium (K) and sulphur (S) content. Thus, output of NP/NPK complexes has increased (from 27.89 lt to 30.91 lt) along with that of single super phosphate (from 17.01 lt to 17.06 lt). “There is no shortage for now or in the remaining part of the current kharif cropping season (June-September). The problem may arise in the rabi season after October,” said industry sources. The reason for
17August 2021 | J. M. Baxi & Co. FERTILIZER Update
Source: The Indian Express
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that is soaring international prices, both of fertiliser products as well as their imported inputs. Last year at this time, India had contracted urea imports at around $290 per tonne CFR (cost plus freight). Those prices are now at $510-515 per tonne. Import prices have similarly surged over the last one year for di-ammonium phosphate (from $330 to $630 per tonne) and intermediates such as phosphoric acid (from $625 to $998), ammonia ($205 to $670) and sulphur ($75 to $210). Morocco’s state-owned OCP has, moreover, raised its phosphoric acid price for the July-September 2021 quarter to $1,160 per tonne CFR, which Indian DAP manufacturers are saying is unviable for them. The situation is equally tight in muriate of potash (MOP), where imports into India were coming at $230 per tonne a year ago. Indian companies, in April, signed contracts with major global MOP producers for supplying through December 2021 at $280 per tonne CFR. But with the US and European Union imposing sanctions against the Alexander Lukashenko regime in Belarus for alleged human rights abuses – the Eastern European country was India’s second largest MOP supplier in 2020-21 after Canada – there is talk of the $280 rate being renegotiated and fresh imports getting contracted at $400 levels. Belarus apart, China is the other big source of uncertainty. In the last two years, it has been India’s biggest supplier of urea and No. 2 for di-ammonium phosphate after Saudi Arabia. Last week, China’s National Development and Reform Commission announced that it had summoned fertiliser firms for a discussion against speculation and hoarding of nutrients, following
which they decided to temporarily suspend exports and assure supplies in the domestic market. “The Narendra Modi government will have to take a call soon on hiking subsidy rates on N, K and S. Not doing that would force companies to either sharply hike retail prices or slash production and imports, resulting in reduced fertiliser availability during the rabi season. The stocks position will turn precarious by early- to mid-September,” the sources warned. The Modi government had, on May 20, raised the per-kg subsidy rate on ‘P’ from Rs 14.888 to Rs 45.323, which is applicable till October 31. It ensured no or very little increases in the retail prices of di-ammonium phosphate, single super phosphate and other phosphorus-containing fertilisers for the kharif season. Whether similar upward revisions in the subsidy rates for other nutrients remains to be seen. Interestingly, the Centre’s fertiliser subsidy bill had, during the previous UPA government’s time, massively shot up from Rs 32,490 crore in 2007-08 to Rs 76,603 crore in 2008-09. The increase — even higher, after adding the 20,000 crore of bonds issued to fertiliser firms in lieu of cash subsidy — happened when global urea, DAP and MOP prices had scaled record highs of $865, $1,230 and $1,060 per tonne, respectively during August-October 2008. That was again just months before the 2009 Lok Sabha elections, when the UPA returned to power
J. M. Baxi & Co. FERTILIZER Update | August 202118
Real worry, however, is soaring global prices and availability of nutrients in rabi season ahead of UP elections.
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Retail sales of fertilisers have fallen 12.4 per cent in April-July over the corresponding four months of last year. All major nutrients have posted lower sales: urea (minus 12.8 per cent), di-ammonium phosphate (minus 27.5 per cent), muriate of potash (minus 8.8 per cent) and complex fertilisers (minus 6.5 per cent). Only single super phosphate sales have registered a 4.6 per cent year-on-year increase. Reduced fertiliser purchases by farmers is consistent with the Agriculture Ministry’s data that shows a 4.7 per cent drop in the area sown under kharif crops till July 30, relative to the coverage during the same period of the 2020 season. Farmers have so far planted 4 per cent less area under rice, with these lagging by 3 per cent for pulses, 5.7 per cent for coarse cereals, 5.5 per cent for oilseeds and 8.7 per cent for cotton. Both fertiliser sales as well as kharif acreages being down are largely due to an erratic monsoon. While the country received 9.6 per cent above long-period average rainfall in June, it was 6.7 per cent below normal in July. But more important was an extended dry spell from around June 20 to July 11. Since mid-June to mid-July is the peak time for kharif sowing, many farmers are seen to have missed out on that window. While the rains revived from July 12, overall sales of fertiliser for the month were still 16.6 per cent down compared to July 2020. Satish Chander, director-general of the Fertiliser Association of India, felt that comparing April-July 2021 sales to April-July 2020 may not be wholly accurate. Last year, there was lot of panic buying because of
the lockdown-related uncertainties. Although agricultural inputs were exempted from any movement, distribution or retailing restrictions, farmers as well as dealers stocked up material in anticipation of kharif demand. Fertiliser sales in April-July 2020 were, in fact, 56.7 per cent higher over April-July 2019. But sales slowed in the subsequent months, with the fiscal (April-March) as a whole recording 9.7 per cent growth. “We are back to normal growth now and hope it to be so for the rest of the year,” said Satish Chander. A significant source of worry, however, is international prices. In the last one year, prices of urea imported into India have doubled to about $520 per tonne. The landed cost and freight prices of di-ammonium phosphate (DAP) and muriate of potash (MOP) have similarly gone up from $330 and $230 to $630 and $280 per tonne, respectively, while also rising for inputs such as phosphoric acid ($625 to $1,160), ammonia ($205 to $670) and sulphur ($75 to $200). Fertiliser prices have basically tracked global agri-commodity prices. The Food and Agriculture Organization’s world food price index has soared by 33.9 per cent between June 2020 and June 2021. But in fertilisers, there are a couple of additional factors at work. The first is China. India has been importing roughly 3 million tonnes (mt) of urea and 2-3 million tonnes of DAP annually from China. But China has, of late, been resorting to strategic stockpiling of fertilisers rather than supplying to the world market. The second is Belarus, which is India’s second largest supplier
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Fertiliser sales down on erratic monsoon rains04
19August 2021 | J. M. Baxi & Co. FERTILIZER Update
of MOP after Canada. The recent economic sanctions imposed by the US and the European Union against the Belarusian regime have raised the prospects of a further hardening of MOP prices. “Morocco’s state-owned company OCP, too, has raised its supply price of phosphoric acid for India from $998 to $1,160 per tonne. This is a clear indication we are in a seller’s market in fertilisers similar to that witnessed back in
2008,” an industry expert pointed out. According to him, the problems in fertiliser will not be in kharif, but in the upcoming rabi season. “The government should review the stock availability of all nutrients factoring in view the tightening global supply conditions. Not doing can prove costly just ahead of Assembly elections in Uttar Pradesh, Punjab and other states in February-March,” he added
Source: The Indian Express
J. M. Baxi & Co. FERTILIZER Update | August 202120
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21August 2021 | J. M. Baxi & Co. FERTILIZER Update
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