Moneycontrol
Get App
Last Updated : May 21, 2016 11:48 AM IST | Source: PTI

MMTC contracts 6 lakh tonnes urea import for arrival next mth

The country imports about 80 lakh tonnes of urea annually to meet the domestic demand. Indian Potash (IPL), MMTC and STC are the three authorised trading agencies for urea imports.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Ahead of kharif sowing, state-run MMTC has contracted to import six lakh tonnes of urea at USD 227 per tonne, on behalf of the government and the shipments are expected to reach India next month.


The country imports about 80 lakh tonnes of urea annually to meet the domestic demand. Indian Potash (IPL), MMTC and STC are the three authorised trading agencies for urea imports.


"MMTC has awarded the tender to import 6,00,000 tonnes of urea at the rate of USD 227 per tonne. The shipments are scheduled to reach Indian ports by next month," a source said.

Close

This is the first tender awarded in 2016-17 and MMTC plans to float more import tenders in the coming months, the source said.


Urea import is tendered at a lower rate this year as against last year's average rate of about USD 279 per tonne.


Urea is a controlled commodity and its selling price is fixed at Rs 5,360 per tonne. The difference between cost of production or imported price is paid as subsidy to the industry by the government.


The country is dependent on imports as domestic output is around 230 lakh tonnes, while the demand is about 310 lakh tonnes.


The government has made mandatory to coat the urea with neem to check diversion for other non-agri purposes.


Neem-coated urea has several benefits as it also acts as insecticide.

Sowing of kharif crops like paddy and soyabean will begin from next month with onset of monsoon. The government is positioning all farm inputs including fertilisers to facilitate smooth sowing operations.



Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on May 21, 2016 10:56 am
Sections
Follow us on
Available On