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.
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. 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. MMTC Ltd stock price On May 20, 2016, MMTC closed at Rs 36.90, down Rs 0.5, or 1.34 percent. The 52-week high of the share was Rs 57.90 and the 52-week low was Rs 29.95. The company's trailing 12-month (TTM) EPS was at Rs 0.70 per share as per the quarter ended December 2015. The stock's price-to-earnings (P/E) ratio was 52.71. The latest book value of the company is Rs 13.59 per share. At current value, the price-to-book value of the company is 2.72.