Higher crop acreage, rain lift India fertilizer sales

: Fertilizers
20/06/23

Indian farmers have increased crop sowing acreage by 39pc so far this kharif season, driving fertilizer sales, with rainfall also up this month.

Total fertilizer sales — urea, DAP, NPKs, MOP and SSP — have already surpassed June 2019 levels this month (see chart). Sales have hit 4.74mn t as of 22 June, up from 3.84mn t in the month last year, continuing the momentum seen in May, latest government data show.

Total fertilizer sales in India have now risen to 24.7mn t this year, as of 22 June, up from 18.5mn t in the first half of last year.

Strong agricultural fundamentals have spurred end-user fertilizer buying, with farmers raising crop sowing acreage so far this kharif season, running from April-September. Crop sowing has risen to 13.1mn hectares (ha) as of 19 June, up from 9.4mn ha at this point last year. Sowing acreage of the oilseeds and cotton crops has outstripped last year's levels, up by around 1.27mn ha and 1.06mn ha, respectively.

Monsoon rainfall starts strong

Farmer fertilizer purchases have also been encouraged by attractive weather conditions this monsoon season.

The country's meteorological department had lifted its projections for the monsoon, which usually occurs from June to September, raising it to 104pc of the long period average (LPA) of 88cm on 1 June.

The upgraded forecast appears justified with rainfall this month outstripping typical levels, hitting 141.5mm as of 23 June, compared with an average of 114.2mm at this point in the season. Rainfall in Goa, in central India, has been particularly heavy, hitting 966mm, up from standard levels of 651.1mm.

By Harry Minihan

India fertilizer sales

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US-Belarus potash trade may soften MOP pricing outlook

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London, 15 December (Argus) — Potash trade between the US and Belarus is set to be reinstated after an absence of almost four years, following the lifting of US sanctions on Belarusian potash on 13 December with immediate effect — a move that could soften the outlook for global MOP prices as supply options increase. The relationship between the US and Belarus had started to ease earlier this year when Belarus agreed to release 52 political detainees from its prisons in exchange for the lifting of some sanctions on Belarusian flagship airline Belavia in September. This limited rapprochement generated talk among market participants of the possibility of a further lifting of US sanctions on Belarus, which could affect Belarusian potash. US sanctions on Belarusian potash , which is produced by state-owned Belaruskali and marketed by BPC, have been in place since 2021. But the announcement over the weekend has largely caught the market by surprise. 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The policy change also comes at a time when Belarusian MOP capacity is increasing capacity, with the 2mn t/yr Nezhinsky MOP project scheduled for commissioning in the second quarter of 2026, and underscores Belarus' commitment to continue growing its footprint in the global potash market. By Julia Campbell and Taylor Zavala Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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