The sales eclipse the previous record of 3.36 million t in June 2020, and are up by 12% on the 3.052 million t sold in the month in 2024. The latest provisional data also point to a record amount of urea sold in the April-June period, totalling 6.99 million t, up from 6.23 million t a year earlier and surpassing the 6.48 million t sold in the period in 2020.
Urea sales have boomed thanks in large part to the solid rains so far this monsoon season. The monsoon set in on 24 May — the earliest since 2009 — and countrywide levels in June were 9% above the historical mean. Demand also appears set to be solid in July, with rainfall projected to be above normal this month, exceeding 106% of the long-term mean, according to India's meteorological department.
Urea output fell to 2.36 million t last month, which is lower than rates in June in the past two years but is up from the 2.24 million t produced in May. Indian urea production has been struggling to keep up with the record rates set in the 2023 - 24 fertilizer year, with output lagging since August-September last year.
The increased urea sales have compounded lower production in the country to further erode India's stocks. Inventories are estimated to have been 6.6 million t as of 1 July, a substantial drop on levels at around 11 million t a year earlier. India has been struggling to build stocks in the run-up to the summer months after a series of import tenders failed to bring in the tonnage required ahead of the monsoon season. Importer RCF will close a tender on 7 July and is seeking 2 million t of urea across both coasts.
Original article written by Harry Minihan. Find the original story here.
