2 weeks ago
India locks in fresh urea imports of 1.7 million tonnes
Farmers in India grow crops in the winter-spring season, which is called the rabi season.
To help those crops grow well, farmers use a special fertilizer called urea.
India needs to buy extra urea from other countries, so a government company called RCF held a big shopping contest known as a tender.
In a tender, different sellers offer a price, and the buyer picks the best deal.
India agreed to buy about 17 lakh tonnes of urea, which is a very large amount.
The new price is much lower than what India paid in earlier tenders, so this saves money.
Many sellers offered far more urea than India needed — over 55 lakh tonnes in total.
The urea will be delivered to ports in western and eastern India to help with the upcoming crop season.
India has secured imports of 17 lakh tonnes (1.7 million tonnes) of urea through an international tender floated by Rashtriya Chemicals and Fertilizers (RCF) on July 29.
The landed price is $390.25-$393.65 per tonne, substantially lower than earlier contracted rates of $444.9-449.3 and $935-959 per tonne.
Bids for the RCF tender were opened on August 11 and finalised on Thursday.
Of the total quantity, 10 lakh tonnes are to be delivered at western Indian ports and 7 lakh tonnes at eastern coast ports.
The tender attracted total offers of 55.47 lakh tonnes — 31.12 lakh tonnes for western and 24.35 lakh tonnes for eastern coast delivery.
The imports are expected to help agricultural operations in the ensuing rabi (winter-spring) crop season.
- Who
- Rashtriya Chemicals and Fertilizers (RCF), a state-owned Indian company, floated the tender on behalf of India.
- What
- India secured imports of 17 lakh tonnes (1.7 million tonnes) of urea at landed prices of $390.25-$393.65 per tonne.
- Where
- India, with deliveries destined for western Indian ports (10 lakh tonnes) and eastern coast ports (7 lakh tonnes).
- When
- The tender was floated on July 29, bids were opened on August 11, and the deal was finalised on Thursday.
- Why
- To support agricultural operations in the ensuing rabi (winter-spring) crop season and to secure urea at prices substantially lower than earlier contracted rates.
Key facts
- Product
- Urea (fertilizer)
- Import quantity
- 17 lakh tonnes (1.7 million tonnes)
- Landed price
- $390.25-$393.65 per tonne
- Tender agency
- Rashtriya Chemicals and Fertilizers (RCF)
- Tender floated
- July 29
- Bids opened
- August 11
- Western India allocation
- 10 lakh tonnes
- Eastern coast allocation
- 7 lakh tonnes
- Total offers received
- 55.47 lakh tonnes
- Earlier contracted rates
- $444.9-449.3 and $935-959 per tonne
Sources
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