STC contracts to import 14 LT urea at USD 214-217 per tonne

State-run STC has contracted to import 14 lakh tonnes (LT) of urea at a price of USD 214-217 per tonne for delivery in July to meet the fertiliser demand during the kharif season beginning 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.
Already MMTC has contracted to import 6 lakh tonnes of urea at USD 227 per tonne.
"STC has contracted to import about 14 lakh tonnes of urea in the price range of USD 214-217 per tonne. The shipments are expected to reach by the first week of July," a source said.

This is the lowest price since 2014 at which STC has contracted. It is also lower than the rate at which MMTC has contracted this year.
Urea import is tendered at a substantially lower rates this year as against last year's average rate of about USD 279 per tonne.

With the imports by both MMTC and STC, the country is expected to have a sufficient supply to meet urea demand during the kharif season, according to a source.
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.

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.