Domestic fertilizer market Essay

Domestic fertilizer market, 460 words essay example

Essay Topic:marketing,community,economics,effective

. DOMESTIC FERTILIZER MARKET With better production levels by Mari based plants, domestic fertilizer demand remained strong during the first half of 2015 but was seriously affected in the latter half due to poor farm economics and market uncertainty caused by delayed implementation of the 'Kissan Package' announced by the Government. UREA Industry urea production for 2015 witnessed an 8% increase and was recorded at 5,301 thousand tonnes while urea imports by the Government stood at 557 thousand tonnes. However, urea offtake decreased to 5,585 thousand tonnes, 1% lower than last year, mainly because of lower urea sales during the second half of the year, caused by non-implementation of the Government's announcement regarding reduction in urea prices through reversal of increase in gas tariff. Consequently, the industry carried a substantial inventory of 551 thousand tonnes at year end, 86% higher compared to last year. DAP Industry DAP off take, remained highly volatile in the third quarter due to delayed implementation of the Rs. 500/bag subsidy announced by the Government. However, with the subsidy becoming effective from October 2015, offtake levels recovered translating into total sales of 1,804 thousand tonnes during 2015, 4% higher compared to last year. FFBL, the sole producer of DAP in the Country, achieved record production during the year standing at 768 thousand tonnes, 10% higher than last year. Supported by low international prices and the subsidy announced by the Government, the industry also undertook record level of DAP imports, registered at 1,261 thousand tonnes, witnessing an increase of 27%. Closing inventory of DAP stood at 321 thousand tonnes as compared to 100 thousand tonnes last year. FFC MARKETING FFC's Marketing Group has been at the forefront in creating value for its customers, while sustaining successful operations, since the inception of the Company's business through provision of premium quality fertilizers to the farming community of the Country. FFC takes pride in its widespread and well-mapped network of 3 zones, 13 regions and 66 sales districts with over 3,700 dealers and 169 warehouses across Pakistan. In addition to delivery of quality fertilizer, provision of value adding Agriculture Extension Services is also a hallmark of the Company carried out through 5 Farm Advisory Centres spread across the Country. The Company sold 2,408 thousand tonnes of Sona Urea (Prilled) in 2015, improving by 2% compared to last year. Marketing of Sona Urea (Granular) on behalf of FFBL at 290 thousand tonnes was 36% higher than the preceding year. Sale of imported DAP stood at 165 thousand tonnes against 123 thousand tonnes during last year which, along with marketing of 748 thousand tonnes of Sona DAP on behalf of FFBL, translated into the highest ever total DAP marketed by the Company. Combined urea market share of FFC and FFBL was registered at 48%, exhibiting an improvement of 2% over last year whereas combined market share of DAP stood at 50%, 1% higher than the market share of 2014. (Source NFDC). FFC MOP / SOP fertilizer sales stood at 15 thousand tonnes, at

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