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Monthly FERTILIZERUpdate

AUG21

J. M. Baxi & Co. FERTILIZER Update | August 20212

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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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


UREA 96000

KRISHNAPATNAM

AMMONIUM PHOSPHATE SULPHATE 26908


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


MUNDRA



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


SULPHUR 30300

Grand Total 2975781


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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


INDONESIA AMMONIUM PHOSPHATE SULPHATE 26908


UREA 48244

ISRAEL MURIATE OF POTASH 33000

JAPAN MOLTEN SULPHUR 7000

JORDAN ROCK PHOSPHATE 163575

MOROCCO DI AMMONIUM PHOSPHATE 113549


OMAN UREA 54911

QATAR SULPHUR 37300

SAUDI ARABIA DI AMMONIUM PHOSPHATE 221375


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


NITROGEN PHOSPHORUS POTASH 33000

SINGAPORE AMMONIUM NITRATE 1998

TOGO ROCK PHOSPHATE 98589

Major Country-wise Fertilizers Imports July - 2021 (Qty in Metric Tonnes)


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



UREA 63000

COROMANDEL INTL. LTD.


MOLTEN SULPHUR 7000



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.


UREA 224557

INDIAN POTASH LTD.




UREA 63000

U.A.E. SULPHUR 83334

UKRAINE UREA 54599

UNITED KINGDOM DIHYDRATE POLY HALITE 30000


KRIBHCO FERTILIZERS LTD.



KRISHAK BHARATI CO OP LTD.



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.



SWISS SINGAPORE INDIA PVT. LTD. DI AMMONIUM PHOSPHATE 45900


12Jan 2020 | J. M. Baxi & Co. FERTILIZER Update

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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

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Fertiliser sales down on erratic monsoon rains

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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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Various companies import these fertilisers as per their commercial judgement

“ “

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


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


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


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


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