Sales of urea, a vital ingredient for farming, are set to jump by 21% in March 2024, according to a report by JS Global released on Monday.
If the estimates hold true, it means a significant increase compared to last year, with total urea sales reaching around 590,000 tons. In February 2024, sales were 543,000 tons, showing a month-on-month increase of 9%.
Similarly, sales of di-ammonium phosphate (DAP) are expected to rise substantially, with a 132% increase compared to last year, reaching approximately 119,000 tons in March.
However, the surge in sales comes with concerns for farmers. The prices of these essential farming inputs have been climbing steadily in recent years, despite government efforts to subsidize fertilizers.
Now, with the rise in energy tariffs, especially gas prices, it is anticipated that urea prices will go even higher. This news has sparked worry among farmers, particularly small-scale ones who make up 90% of the farming community.
The recent increase in gas prices for fertilizer plants will likely prompt the industry to raise urea prices further, which could adversely affect national food security efforts.
In conclusion, while the increase in fertilizer sales indicates a boost in agricultural activity, it also highlights the challenges faced by farmers due to rising input costs.
