Subdue demand likely for fetiliser in second half

 Build-up in inventory levels is likely to lead to subdued demand for the fertiliser sector in the second half of the current fiscal, according to ICRA Research.

“The demand outlook for H2 of FY16 remains subdued, primarily on account of moderately high system level inventories, and low water reservoir levels, due to two consecutive years of weak monsoons.

Overall, ICRA Research expects a minor 1-2 per cent volume growth in the urea sales at companies end and a moderate around 2-5 per cent rise in volumes in the phosphatic and potassic (P&K) segment during FY16,” ICRA Research Corporate Ratings Senior Vice President and Co-Head K Ravichandran said.