India's urea sales jumped by 36pc on the year during April, as strong demand for fertilizers continued despite the country's nationwide Covid-19 lockdown.
Urea sales under the direct benefit transfer (DBT) system totalled 1.1mn t during the first month of the kharif season from April-September, up by 291,000t on the year, according to provisional government data.
The main driver was optimism for the season ahead because of forecasted good monsoon rains, which traditionally start in June. Local reservoirs are also full following heavy rainfall last season, supporting strong upcoming kharif sowing.
The April increase came after sales for the 2019-20 fiscal year rose by 5pc to a record 33.7mn t.
India's nationwide lockdown started on 25 March and will now run through to 17 May, but fertilizers are an essential industry with exemptions, allowing sales to remain strong.
Urea production was initially hit by the lockdown in March, but most plants have now resumed operations.
State-owned trading company MMTC will close a tender on 7 May requesting urea for shipment up to 15 June. The requirement is estimated at more than 1mn t.
