Fertiliser sales up 13% in H1 FY24, higher production leads to lower import

Fertilizer sales have increased by 13 per cent during the first half of the current financial year.

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According to latest official data, overall sales of key fertilisers have surged to 319.86 lakh tonnes (lt) during April-September in 2023-24 from 282.64 lt in the year-ago period. Sales of urea, the largest used crop nutrient, have increased 6.9 per cent to 183.95 lt from 172.11 lt, Di-ammonium phosphate (DAP) by 24.2 per cent to 63.96 lt from 51.48 lt, Muriate of Potash (MOP) by 9 per cent to 7.72 lt from 7.08 lt and complex by 23.6 per cent to 64.23 lt from 51.97 lt year-ago.

Complex variety is a combination of nitrogen (N), phosphorous (P), potash (K) and sulphur (S) nutrients.

While launching the single ‘Bharat’ brand under ‘one nation one fertiliser’ scheme, prime minister Narendra Modi had said that the step would help cut unnecessary use of fertiliser, though experts were of the views that unless prices were rationalised, the balanced use of fertiliser would not be achieved.

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“It is surprising to see higher sales as monsoon was uneven and August had the highest monthly rainfall deficit since 1901. Since fertiliser use is directly related with rainfall, it was expected a decline,” said S K Singh, an agriculture scientist. The government needs to find out reasons which may be due to higher off take by farmers in September ahead of rabi season.

But former vice chancellor of Gwalior Agriculture University A K Singh said that as the irrigated areas, mostly from groundwater sources, are rising every year, so also fertiliser consumption. Fertiliser ministry data show that sales of all fertilisers surged 28 per cent to 66.8 lt only in September from year-ago period while maximum 58 per cent rise noticed in complex that recorded about 19 lt offtake.

“As last year there was a scarcity, I had stocked the requirement of rabi season in September itself,” said Anupam Singh Rajawat, a farmer in Jalaun district of Uttar Pradesh.

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The government in June announced the Prime Minister Programme for Restoration, Awareness Generation, Nourishment and Amelioration of Mother — Earth (PM PRANAM) in order to encourage balanced use of chemical fertilisers and save ₹20,000 crore annually, of which States will get ₹10,000 crore as incentive for lowering chemical fertiliser usage.

Meanwhile, import of overall fertilisers dropped 5.9 per cent to 82.1 lt in April-September of this fiscal from 87.25 lt in the corresponding period last year. Urea import declined by a quarter to 22.59 lt from 29.91 lt and complex fell by 16.8 per cent to 12.69 lt from 15.26 lt. But import of DAP rose by 2.3 per cent to 34 lt from 33.25 lt and that of MOP by 45.2 per cent to 12.82 lt from 8.83 lt.

Production of all fertilisers was up by 7 per cent to 253.71 lt in first half of 2023-24 from 237.1 lt year-ago, which included urea at 152.71 lt (against 139.32 lt year-ago), DAP 23.28 lt (19.98 lt), Complex 48.87 lt (45.48 lt), SSP 25.76 lt (28.65 lt) and Ammonium Sulphate 3.09 lt (3.67 lt).