Importers finalise 80,000 tonnes DAP fertiliser deals

Local importers of DAP fertiliser have finalised deals for the import of around 80,000 tonnes fertiliser worth nearly $24.64 million in order to ensure its ample supply in the domestic market during Rabi season, trade sources said on Wednesday.
They said that soon after government's announcement regarding subsidy on DAP fertiliser, the local importers had approached their respective parties in United States last week and finalised import contracts in order to replenish their stocks and ensure smooth and ample fertiliser supply in the domestic market specially during Rabi season that has just begun.
"Two ships, each carrying around 40,000 tonnes of DAP fertiliser would arrive here from US in the midst of December," said a leading DAP importer who wished not to be named.
He said that the imported fertiliser has been booked at an average rate of $308 per tonne and the shipments are being brought in the shape of 50kg bags. "The imported fertiliser would be kept as carryover stock for Kharif season as well," he remarked.
"Sufficient stocks of DAP are available in the domestic market and we do not see any shortage of fertiliser for Rabi season," the importer added.
Commenting on the availability of DAP fertiliser stocks in the country, he said, "Currently around 0.9 million tonnes of this fertiliser is in the importers and manufacturers' hand, while we were earlier estimating 0.75-0.8 million tonnes demand from farmers during Rabi season." However, he said, after subsidy announcement on DAP fertiliser, importers see handsome growth in their sales.
"Actually, farmers are delighted with the announcement of Rs 250 per 50kg bag subsidy and that is why we are now expecting 0.9 million tonnes sales against 7.5-0.8 million tonnes sales last year," a Karachi-based importer said.
He said that farmers have warmly welcomed the subsidy announcement by the government and the government has also publicise it very well, therefore, the importers do not see any hindrance in the way of their increasing sales.
In this connection it is pertinent to mention here that country's annual consumption of DAP fertiliser currently stands at 1.2 million MT, of which 0.3 million MT is produced locally by Fauji Fertiliser Bin Qasim, while the remaining gap is to be met through imports mainly from the United States, Russia, China, Australia and Tunisia.