India to import 47,000 tonnes of urea from the US; more likely in future
The US is not a major urea exporting country, and govt data shows that Indian imports from Washington in 2019-20 were only 1.47 tonnes
Urea | India imports | United States
BS Web Team |
Last Updated at June 17, 2022 15:01 IST
In a first, India will import nearly 47,000 tonnes of urea from the US as tech giant Samsung will load the consignment at the New Orleans port for shipment to New Mangalore, a news report said.
The cargo, expected to be loaded later this week, is being supplied at a rate of $716.5 per tonne, cost plus freight (CFR), according to a report in The Indian Express. While the freight costs from the US are estimated at about $65, with an additional $10-15 for loading from barges, the overall free-on-board or FOB origin price will be somewhere between $635-640 per tonne, the report said.
The US is not a major urea exporting country, and data from the commerce ministry shows that Indian imports from Washington in 2019-20 were only 1.47 tonnes. In 2020-21 and 2021-22, the US exports to India were at 2.19 tonnes and 43.71 tonnes, respectively.
ALSO READ - India plans urea import deal with Iran using rupee payments: Report
The IE report said that the US is exporting 47,000 tonnes of urea against an import tender floated on May 11 by state-owned Rashtriya Chemicals & Fertilisers Ltd.
The company's tender has led to 1.65 million tonnes (mt) of urea imports from different suppliers at $716-721 per tonne CFR.
"More vessels are likely from the US in the months ahead. It will help in diversifying our import sources and sending a message to other suppliers," The Indian Express quoted an industry expert as saying.
In FY22, India imported 10.16 MT of urea, mainly from China, Oman, UAE, Egypt and Ukraine, priced at $6.52 billion.
The FOB rates of granular urea (US Gulf futures) are at $500 per tonne for June and $455 for July delivery, while for the Middle East, the corresponding futures FOB quotes of $610 and $595 per tonne, the IE said in its report.
"The freight costs are lower, at $15-20 per tonne, from the Middle East. Voyage time is also only 5-10 days, compared to 35 days or more from the US. But these can to some extent be offset by the steep FOB discounts to the international prices," the expert told The Indian Express.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
First Published: Fri, June 17 2022. 15:01 IST