Non-urea fertiliser sales down in 1st half of 2014
Updated: Jan 22, 2014 04:55:11pm
New Delhi, Jan 22 (KNN) Owing to pressure on cash flows due to high subsidy and trade receivables as well as decline in international prices leading to inventory losses, sales of certain non-urea fertilisers have declined in the current fiscal year, said a report from ICRA.
The decline in imports has led to a decline in the proportion of traded sales, which primarily comprise of imported products.
Lower fertiliser sale has also impacted the industry performance in the first half of fiscal year 2014.
However, inventory levels continue to be high compared to normal levels which indicate that despite the improvement in outlook, sales volumes of imported fertilisers should likely remain muted in the second half of this fiscal year. These expectations are also reflected in the significant decline in global prices of various fertilisers, it said.
Further, while currency volatility has reduced to some extent, it continues to post a significant challenge as hedging costs remain high. Subsidy delays are also expected to continue to plague the industry profitability and lead to liquidity issues for many of the players.
However, with healthy monsoons and continuing decline in international prices of various fertilisers and key inputs, the outlook for Rabi crop is expected to be better in this fiscal year, it said. (KNN Bureau)
The decline in imports has led to a decline in the proportion of traded sales, which primarily comprise of imported products.
Lower fertiliser sale has also impacted the industry performance in the first half of fiscal year 2014.
However, inventory levels continue to be high compared to normal levels which indicate that despite the improvement in outlook, sales volumes of imported fertilisers should likely remain muted in the second half of this fiscal year. These expectations are also reflected in the significant decline in global prices of various fertilisers, it said.
Further, while currency volatility has reduced to some extent, it continues to post a significant challenge as hedging costs remain high. Subsidy delays are also expected to continue to plague the industry profitability and lead to liquidity issues for many of the players.
However, with healthy monsoons and continuing decline in international prices of various fertilisers and key inputs, the outlook for Rabi crop is expected to be better in this fiscal year, it said. (KNN Bureau)
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