KARACHI: Urea sales hit a three-year low, plunging 49 per cent month-on-month to 328,000 tonnes in April and 33pc year-on-year.

Sherman Research said that, according to provisional data, DAP sales also declined 12pc to 92,000 tonnes month-on-month but posted a jump of 82pc year-on-year. The decline in fertiliser sales is due to the combined impact of a delay in the wheat harvesting season and the anticipation of a decline in the urea price, which is forcing dealers to be cautious about buying.

The brokerage house recalled that there are media reports that the government is monitoring the recent hike in urea prices, which has created concerns amongst farmers about a possible reduction.

Engro Fertiliser’s urea sales fell to 76,000 tonnes in April versus 119,000 tonnes in March, down 36pc month-on-month and 49pc year-on-year. Meanwhile, the company’s DAP sales plunged by 53pc month-on-month to 10,000 tonnes in April. Urea sales of Fauji Group recorded at 223,000 tonnes versus 253,000 tonnes in March, down by 12pc.

Sherman Research estimated that Engro Fertiliser has the highest urea inventory level, around 143,000 tonnes, followed by Fatima Group and FFC,

with 138,000 tonnes and 64,000 tonnes, respectively.

Published in Dawn, May 8th, 2024