LAHORE: The National Fertilizer Development Centre (NFDC) has released fertilizer off-take numbers for the month of May 2016.
The industry posted marginal recovery in the month with Urea and DAP sales posting a growth of 18 percent MoM and 1 percent MoM, respectively.
The recovery in sales was primarily on the back of initiation of Kharif sowing season, with urea sales gearing additional support from the Rs70/bag cut in urea price following reduction in feed stock gas prices. However, Urea off?take remained weak on a YoY basis, falling 41 percent YoY, while DAP sales grew 20 percent YoY.
The outgoing month of Jun’16 is expected to be another month with subdued sales since the subsidies announced in the Budget’17 will come into effect from 01 Jul’16, therefore, deferring farmer purchases during Jun’16. However, the new fiscal year is expected to start on a good note, supported by i) reduced Urea and DAP prices, ii) peak consumption season and iii) impact of deferred purchases from Jun’16.
