Fertiliser sales picking up

Even as there has been an 11 per cent decline in primary fertiliser sales volume during the first four months of FY2021-22, it is likely to improve and expected to be only marginally lower than the previous financial year, according to a report.

Fertiliser sales volumes were down 11 per cent year-on-year in the first four months of FY22, given the large base effect of FY21 when panic buying by farmers amid Covid-19 pandemic had led to strong growth of 15 per cent y-o-y in H1 FY21, the report said.

"The sales volume, however, declined in H2 FY21 due to inventory destocking at the farmer's end," Icra Senior Vice President and Group Head Sabyasachi Majumdar said.

He said, the sowing levels in current Kharif season are marginally lower and the fertiliser intensity is also expected to remain stable. "Also, the fertiliser availability remains adequate for the ongoing Kharif season and the government is making several efforts to ensure adequate availability for the upcoming rabi season. Thus, overall fertiliser sales volumes for FY22 are not expected to witness a sharp decline," he pointed out.