Fertiliser demand rebounded in the first half of July as kharif sowing gathered pace after a weather-induced slowdown in May and June, with sales reaching 41.09 lakh tonnes (lt) against a projected 74.28 lt for the month by July 17, according to The Hindu BusinessLine. Farmers continue to overwhelmingly prefer subsidised urea, which accounted for 25.86 lt of that off-take — more than 62 per cent of urea's estimated monthly demand of 41.67 lt and nearly two-thirds of total fertiliser sales, underscoring a persistent imbalance in nutrient consumption despite the government's push for balanced fertilisation.
Kharif sowing deficits narrow on July rains
The sharp recovery in fertiliser off-take coincided with a revival in kharif sowing following improved monsoon rains in July, The Hindu BusinessLine reported. The sowing deficit in paddy narrowed to 2 per cent as of July 31 from 9 per cent on July 10, while the shortfall in cotton reduced to 2 per cent from 15 per cent and in maize to 7 per cent from 20 per cent. Overall kharif sowing was less than 3 per cent below last year's level by July-end, compared with a 4.7 per cent deficit a week earlier.
- Paddy: deficit narrowed to 2% from 9%
- Cotton: deficit narrowed to 2% from 15%
- Maize: deficit narrowed to 7% from 20%
- Overall kharif sowing: less than 3% below last year's level (vs 4.7% deficit a week earlier)
Urea leads July sales, DAP and MoP lag
Against the estimated July demand of 74.28 lt, fertiliser sales touched 41.09 lt by July 17, indicating over half the month's projected demand had already been met, the report said. The breakdown shows urea's dominance:
| Fertiliser | Sales by July 17 (lt) | Projected July demand (lt) |
|---|---|---|
| Urea | 25.86 | 41.67 |
| DAP | 5.74 | 12.00 |
| Muriate of Potash (MoP) | 1.07 | 3.54 |
| Complex fertilisers | 8.42 | 17.07 |
| Total | 41.09 | 74.28 |
Urea accounted for more than 62 per cent of its projected monthly demand and nearly two-thirds of total fertiliser off-take, the report noted. In comparison, DAP sales stood at 5.74 lt against a projected 12 lt, MoP at 1.07 lt against 3.54 lt, and complex fertilisers at 8.42 lt against 17.07 lt.
Q1 off-take slips despite strong April
Although July shows recovery, fertiliser sales in the first quarter (April–June) remained lower than a year ago. Total sales of the four major fertilisers declined 5 per cent to 115 lt from 121.19 lt in the corresponding period last year, according to The Hindu BusinessLine. Urea sales fell to 65.06 lt from 69.99 lt, while MoP and complex fertilisers also recorded lower off-take; DAP was broadly unchanged at 16.25 lt.
The decline followed an unusually strong April, when sales surged 25 per cent to 23.59 lt, the report said. The government subsequently introduced measures, including linking fertiliser distribution with Agristack data in select States, to curb excess purchases. Demand was further dampened by a weak monsoon in June, when rainfall ended 35 per cent below normal and kharif sowing lagged by nearly 20 per cent. Improved rainfall in July has since helped revive both sowing activity and fertiliser consumption.
August demand outlook
Reflecting expectations of sustained field activity, the Agriculture Ministry has projected August demand at 38.01 lt of urea, 9.81 lt of DAP, 3.27 lt of MoP and 15.27 lt of complex fertilisers, bringing the combined projection to 66.36 lt.
S K Singh, an agriculture scientist, said there had been a significant rise in sowing of paddy, maize and cotton in July and that fertiliser demand had consequently increased. With the latest forecast indicating normal to above-normal rainfall in many areas that were severely deficient in June, fertiliser demand was expected to rise further in August depending on the pace of sowing, he added.
For commodity analysts and agribusiness procurement teams, the July sales data underline the structural skew towards urea in Indian nutrient consumption — a pattern The Hindu BusinessLine said persists despite policy efforts toward balanced fertilisation. The August trajectory will hinge on how monsoon rains track against the forecast, the pace of kharif sowing, and the rollout of Agristack-linked distribution curbs in select States.
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