The Hindu Business Line : Global players hike urea price by 25 pc for MMTC tender

IN what could be the first signal of hard times ahead on the farm front over the next two-three months, urea prices in the international market has gone up by more than 25 per cent in a fortnight.

The Government woke up to this unhappy development on Thursday when MMTC's tender for three-lakh tonnes of urea was opened.

Last week, MMTC had floated an international tender and procured urea at the rate of $195 a tonne for use in the manufacturing of complex fertilisers. According to Government sources, MMTC later floated yet another tender for three-lakh tonnes of urea, following instructions from the Ministry of Fertiliser.

In response to the latest tender, however, the offer prices from international sellers are marked up by almost 25 per cent, which has made the Ministry sit up.

According to sources, MTPL Singapore has quoted a rate of $218.90 a tonne f.o.b/$ 249.90 a tonne cfr. Qatar-based Qafco has quoted $ 230 a tonne f.o.b, while Abu Dhabi-based Fertil-Ruwais has quoted a rate of $230 a tonne f.o.b. and Kuwait-based PIC has quoted slightly higher at $ 240 a tonne f.o.b.

According to fertiliser industry sources, the Government may either cancel the tender or go in for the purchase to ensure adequate availability of urea.

In that case, the result would be an increased outgo of funds during the current fiscal under the fertiliser subsidy account.

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