Fertiliser sales drop sharply

Post Source: The News Correspondent

KARACHI: Fertiliser offtake dropped by seven percent in the first ten months of 2010 (10M2010) to 6.6 million tons from 7.1 million tons in the same period of last year, the latest figures released by National Fertiliser Development Centre (NFDC) showed. A massive disruption in offtake during August because of the floods caused this decline, said Bilal Qamar, an analyst at JS Research. Total fertiliser offtake during October stood at 941,000 tons, up 51 percent year-on-year and 37 percent month-on-month mainly on account of increase in DAP offtake to 371,000 tons.
DAP offtake registered a year-on-year decline of 15 percent in 10M2010 to about 1.1 million tons. The decrease has been witnessed on account of high DAP prices during the period and the floods which saw August’s offtake fall to a mere 50,000 tons. However, DAP offtake rose by 45 percent in October (month-on-month) owing mainly to panic buying by dealers with concerns over the implementation of reformed general sales tax.
Engro Fertiliser’s sales rose by 19 percent y-o-y in 10M2010, while that of Fauji Fertiliser Bin Qasim Limited (FFBL) fell by 13 percent y-o-y. Fauji Fertiliser Company (FFC) managed to sell 35,000 tons of DAP, which it had imported earlier this year.
Urea sales too continued to slide, registering a fall of nine percent y-o-y to 4.6 million tons compared with 5.1 million tons in 10M2009. High urea prices coupled with the recent flooding were major factors behind this decrease. In October alone, the urea offtake came in at 427,000 tons, almost the same as in October last year, but higher by 32 percent on month-on-month basis.
FFC’s and FFBL’s urea sales declined by 10 percent y-o-y and 18 percent y-o-y, respectively, in 10M2010. Engro’s sales declined by six percent y-o-y.

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