India urea inventories declined to around 4.9 million tonnes in mid-January, down from 5.3 million tonnes at the end of December. The fall in India urea inventories reflects strong domestic sales, according to provisional industry data.
Urea sales in January are estimated at about 4.4 million tonnes. Although this figure is slightly lower than the 4.56 million tonnes sold in January last year, it remains high compared with historical levels. Meanwhile, domestic urea production is expected to remain steady at more than 2.6 million tonnes during the month.
In December, stocks fell sharply after a drawdown of 2.24 million tonnes. This followed record local urea sales of 5.76 million tonnes, the highest ever recorded in a single month.
As a result, declining inventories continue to put pressure on imports. Market participants now expect another urea import tender next month. This would help replenish stocks ahead of the kharif summer season, which typically gains momentum during May and June.
