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Anticipated deficient monsoon rains across several regions of India are expected to drive an uptick in fertiliser sales during the upcoming rabi season, as farmers seek to compensate for the impact of insufficient rainfall during the kharif crop season.
The erratic pattern of the southwest monsoon has led to disparate precipitation levels, leaving some areas with inadequate showers while others received normal to excessive rainfall. Consequently, fertiliser sales experienced a slump in the kharif crop season, prompting the fertiliser industry to pin its hopes on an improved situation in the months ahead.
Jitendra Saklani, the Head of Marketing Strategy & Innovation at Chambal Fertilisers, noted that farmers are currently showing restrained purchasing activity. However, he anticipates a rebound in sales towards the end of October or November, coinciding with the rabi season.
During the first quarter of FY24, fertiliser sales volumes remained stable, following a trend seen in the previous year. Sales figures were relatively unchanged at 63.9 million tonnes, while production experienced an 11% surge to reach 48.7 million tonnes. Notably, consumption during Q1 plateaued at 11.2 million tonnes, while production recorded a 12% increase to 12.4 million tonnes.
The Fertiliser Association of India (FAI), representing various industry stakeholders, highlighted the conclusion of major crop sowings and expects sales volumes to witness a 2-3% growth this year. While sales faced a temporary setback due to monsoon variations, the industry remains optimistic about the trajectory of fertiliser demand as the agricultural cycle progresses.
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