Fertilizer offtake in India is expected to be healthy

In the upcoming rabi season, the consumption of mineral fertilizers in India will be quite good, predicts Varun Gogia, Senior Analyst at ICRA.

In his opinion, the profitability of urea producers will remain stable due to the absence of fluctuations in natural gas prices over the past 12-14 months and the steady dynamics of sales. The profitability of enterprises manufacturing phosphoric and complex fertilizers may even increase due to lower prices for phosphoric acid and ammonia.

However, there are fears that the state budget of India may not have enough funds to subsidize sales of mineral fertilizers to farmers: last year, 84% of the total budgetary allocation for subsidies had been spent by the end of October.

Source: The Economic Times