Fertiliser and IPA demand to remain stronger despite the outbreak of Coronavirus pandemic in India according to Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL). 

 

A strong retrieving monsoon and higher water reservoir level demand recovery has been experienced during the second half of the FY2020 for Fertiliser Business. Even as the market remained subdued, the company remained focused on demand generation. The company embarked on a crop specific market development campaign including promotional activities, crop seminar and farmer meeting and product demonstration in farmer fields. 

 

IPA demand is expected to remain stronger. Surge in IPA based sanitizer requirement is expected to remain high on account of hygiene awareness. 

 

The downstream users of weak nitric acid have been impacted due to the outbreak of COVID-19 which in turn has impacted the demand for weak nitric acid of the company. Slow pick up in activities is being witnessed as the lockdown is being removed gradually. CNA customers have gradually started operations, resulting in restoration of normal demand. The Dahej facilities are limping back gradually to normal operations.

 

Liquidity issues, stalled large-scale infrastructure projects, restrictions on movements and lockdown situation due to the COVID-19 pandemic has impacted the domestic demand as well exports for TAN business. TAN demand has been impacted due to slowdown of mining/Infrastructure activities but the demand is gradually improving with TAN customers gradually starting operations If the lockdown gets eased further going forward, the company expects to see demand revival. 

 

Supply chain disruption has impacted businesses across the country. The company has taken various measures to mitigate the supply chain disruption. DFPCL is in the process of building alternate supply chain options along with developing new ways of working.

 

COVID-19 impacted production of NP/NPK at Taloja for a few days in the month of March and April 2020. TAN, IPA and Ammonia plants have been continuing near normal operations. In case of Weak Nitric Acid, the downstream industry continues to reel under the COVID-19 lockdown and has impacted its production other than for its captive use. Operations at CNA plant and DNA plant at Dahej were partially impacted due to COVID-19, however plants are now fully operational. Nitric Acid plants at Taloja are intermittently running depending on the market demand.