KARACHI: The sale of fertiliser, primarily, urea and DAP, has surged significantly in February as many dealers are believed to be building their inventory ahead of the budget presentation in the National Assembly next month, according to a brokerage house on Tuesday.
As per the latest data released by the National Fertilizer Development Corporation (NFDC), sale of urea surged 44% to 370,000 tons in February compared to 257,000 tons in the same month last year, according to BIPL Securities.
“Surge in urea demand can be attributed to the buildup of inventory by dealers amid recovering prices and concern of subsidy cut post budget,” BIPL Securities’ analyst Jawad Ameer Ali said in a commentary. Cumulatively, in the first two months of the year, urea sales rose 37% to 909,000 tons compared to 663,000 tons in the corresponding period of last year.
DAP usage for the month rose to 122,000 tons, depicting an increase of 25% (year-on-year basis). On cumulative basis, DAP sales posted a robust growth of 35% on yearly basis in the first two months of calendar year 2018. The sale of CAN enhanced 6% to 70,000 tons in February. However, the usage of NP dropped 11% to 37,000 ton in the single month on year-on-year basis.
Fauji Fertilizer Company remained the industry leader by selling 157,000 tons of urea in February, which was 45% higher than 109,000 tons in February 2017.
Fatima Fertilizer, however, exhibited the strongest growth of 217% in its sales to 38,000 tons in the single month compared to 12,000 tons in the same month last year. Fauji Fertilizer Bin Qasim (FFBL) and Engro Fertilizer appeared as the two marketers of DAP. FFBL, which is the only manufacturer of the fertiliser in the country, sold 41,000 tons of DAP which was 18% higher than 35,000 tons in the same month last year.
Engro Fertilizer sold 18,000 tons of DAP which was 51% higher than 12,000 tons sold in February 2017.