DoF reviews urea supply as shortages continue

摘要

The Indian Department of Fertilizers (DoF) has been conducting internal meetings this week to assess the supply situation for urea in response to further shortages in Haryana and Punjab. Indian media cite riots at distribution centers operated at local police stations and hunger-strikes by farmers in Hisar to protest the shortages. Political pressure is building for the central government to clear procurement of additional imports despite the massive supplies booked via the September 17 MMTC tender (1.77 million mt purchased), the October 29 STC tender (1.1 million mt) and the December 3 IPL tender (1.15 million mt). While the MMTC quantity and the majority of the STC tonnage have landed in Indian ports, onward transportation to the states has proven inadequate, contributing to the shortages identified. The prolonged suspension of subsidies to naphtha-based urea units that is now resolved also cut into overall supply of urea, as did the slow-down in deliveries from Omifco in Oman.