KARACHI (February 27 2007): Fertilisers offtake across the country in January 2007 saw significant drop, by nearly 27 percent, while the prices rose by Rs 2 to Rs 8 per bag, according to official statistics on Monday.

Statistics show that during January 2007 fertiliser offtake decreased to 0.646 million tonnes against 0.895 million tonnes of January 2006, showing a drop of 0.249 million tonnes, or 33 percent.

Meanwhile, except SSP and SOP that witnessed downward trend during the month, the average retail prices of fertiliser products rose by Rs 2-8 per 50 kg bag in the range of 1.6 to 0.1 percent.

Urea Sona price rose by 1.6 percent or Rs 8 to Rs 539 per bag during the month against Rs 531 in December 2006. Urea Kissan price increased by Rs 4 per bag to Rs 524 against Rs 520 in December 2006.

DAP price was up marginally (Rs 2) to Rs 873 per from Rs 871 in December. The prices of SOP and SSP (Granular) declined to Rs 900 and Rs 283 per bag from Rs 906 and Rs 284 per bag respectively, showing a decrease of Rs 1 to Rs 6 during January.

According to statistics indicate, urea offtake decreased by 0.198 million tonnes, or 35 percent during last month as compared to same period of last year. Urea offtake was 0.563 million tonnes during January 2007 against 0.365 million tonnes in January 2006.

Dai Ammonia Potash (DAP) sales registered a big increase to 0.515 million tonnes in January against 0.310 million tonnes in January 2006, showing an increase of 77 percent.

Total nutrient (nitrogen, phosphate, potash) offtake stood at 0.303 million tonnes during January 2007 as compared to 0.226 million tonnes in the same period of last year, showing a decrease of 0.177 million tonnes or 25.2 percent.

In the total nutrient, the potash offtake was 2,100 tonnes with 155 percent increase, and phosphate 23,000 tonnes with 59.40 percent increase. However, nitrogen offtake showed a decline of 32 percent, whereas its offtake was around 0.281 million tonnes during January 2007.

Analysts said that non-availability of canal water, because of annual desilting, contributed to the decline. They said that second application of urea on the wheat crop was affected and contributed to low offtake, hence nitrogen, whereas phosphate and potash offtake surge continued in the backdrop of subsidy.

Copyright Business Recorder, 2007