AMMONIA
U.S. Gulf/Tampa: Both Yara and PCS Sales were reported to have made sales to CF at $275/mt DEL. Yara was for the full month and PCS was for a 15,000 mt cargo in the second half.
In the meantime, across the Gulf, sources reported that the latest NOLA prompt barge sale was done at $275/st FOB.
Eastern Cornbelt: Anhydrous ammonia pricing remained in the $450-$550/st FOB range, with the low for cash tons in Illinois.
Western Cornbelt: Missouri sources reported running a little ammonia to the field last week, although activity was very limited. Anhydrous ammonia pricing remained at $400-$525/st FOB regional terminals, depending on location and time of delivery. Delivered ammonia to points in Missouri remained in the $425-$450/st range from production points in Oklahoma and Kansas.
Northern Plains: Sources reported little change to the spot fertilizer markets, and activity in the region was quiet. One North Dakota source noted that there is a lot of unworked ground from last fall, so both growers and dealers are hoping for an early start to spring fieldwork, along with cooperative spring weather during the busy planting time.
In Minnesota, the ammonia market remained in a broad range at $450-$550/st FOB, depending on location and time of delivery. Delivered ammonia was quoted at $550-$600/st in the region.
Black Sea: Asian sources report prices are moving up, but not enough to encourage Ukrainian plants back into production. Sales of material from the area are described largely as ammonia left over from urea production rather than deliberate ammonia production for export.
Sources say the price range is now $210-$230/mt FOB, with all indications that the price will keep rising.
Ukrainian producers can only hope the price rises soon, say Asian sources. The production cost to the producers is now pegged at $320/mt because of the new price of Russian natural gas. The breakeven price would have been much higher, said one source, if the Russians got their original pricing idea for the gas.
Demand for ammonia in Asia is helping move the price up, say sources. Unfortunately for the Black Sea producers, the amount of ammonia heading to the East is not as much as producers would like.
Middle East: The price keeps getting better each week ?Çô for producers. Qafco closed a 15,000 mt deal at $250/mt FOB, which represents a $50 increase from the last known bit of business. Some in Asia say the price may be as high as $260/mt FOB. The final home of the ammonia is unknown, but conventional wisdom says the tons will be going to India now that some DAP producers have reached a deal for some phos acid.
Demand from South Korea and Taiwan remains strong. Purchases from Asia are being added to contract tons from the Middle East and the occasional spot purchase such as the Qafco deal.
Asian sources say the price is clearly in the $250-$260/mt FOB range.
Reportedly, producers are more willing to limit production to help sustain the rising prices. One observer noted it would do the producers little good to begin building reserves in their tanks at a time when demand is beginning to outstrip current supplies.
Adding to the Middle East producers’ woes are reports that the Australian Burrup facility is back up and exporting. Also back online is the Mitsubishi/KPI plant in Indonesia.
Asia: Demand is up, but industry watchers are still not sure if the demand is sustainable. The fertilizer plants in South Korea and Taiwan began the call for ammonia as the appropriate application season approached. In the past couple of weeks industrial buyers have begun to step up and ask for tons. Sources say some buyers are looking for purchases into April.
Industry observers note that many of these requests are coming from companies whose tanks are just about ready to run dry.
These same companies did not make their usual purchases during the past few months because of the global economic downturn. Now that their storage facilities are emptying, sources say these buyers are taking advantage of low prices to refill the tanks.
No one was willing to project what will happen after the April orders are filled.
For now, producers are happy to add a few dollars to their sales as demand picks up.
Mitsubishi paid $225/mt FOB for material from Mitco late last week. Mitsui paid $220/mt FOB the previous week. Mitsubishi itself paid $200/mt FOB last month.
The steady increase in pricing was enough to get Mitsubishi to finally fire up its Indonesian KPI plant.
Sources say the plant restarted Feb. 13 and is slowly ratcheting up production. Full production is expected to be achieved by the end of this week.
The return of the Burrup facility in Australia has also heartened buyers. The plant was shut down because of an accident in the natural gas supply chain rather than anything directly related to the weak ammonia market.
Contract buyers in South Korea are reportedly happy that they will soon begin receiving the tons they were promised.
One source noted that the Asian price would have gone up much faster if the KPI and Burrup plants were not back on line. The only problem, this source said, would have been the absence of enough ammonia for the demand.
UREA
U.S. Gulf: Granular barge prices appeared to stall last week, with sources attributing this to wet weather across much of the heartland, as well as nervousness over corn pricing. As for actual trades, sources claimed new business on each side of the previous range, with prices reported at $302-$307/st FOB.
Koch’s Enid, Okla., plant remains down, according to sources, who speculate that it may remain so into April.
Eastern Cornbelt: Granular urea was generally quoted at the $365/st FOB level to dealers, with some suppliers reportedly referenced as high as $375-$380/st FOB for new tons.
Western Cornbelt: The granular urea market was tagged at $355-$365/st FOB to the dealer, with reference prices at the $380/st FOB level from some regional suppliers.
Northern Plains: Granular urea was pegged at $365-$385/st FOB regional terminals, with dealer reference prices quoted at the $395/st FOB mark out of North Dakota shipping points. On a delivered basis, Dakota sources tagged the urea market last week at $375-$400/st.
Northeast: Granular urea continued to be quoted in the $350-$365/st range FOB Baltimore and Philadelphia, with reports of some suppliers referenced at the $375/st FOB level.
Eastern Canada: Sources tagged the granular urea market at $623/mt FOB in Ontario to the dealer, up only slightly from last report.
Middle East: Fertil reportedly closed a deal at $305/mt FOB late last week. The price indicates a growing firmness in the Middle East market as the TCP tender poises to close Saturday, Feb. 21.
The last offer the Middle East producers made to TCP, about $275/mt FOB, was rejected. Now with a sale on the books $30 higher, sources say there is nothing to prevent the producers from trying to move the price into the $320s/mt and higher.
Until numbers are published Feb. 21 in the TCP tender – assuming the Middle East producers participate – sources say the $305/mt FOB is long gone, but still enough to get into the door for a talk.
Sources peg the market just under $320/mt FOB. When pushed to name a range, one trader said $310-$320/mt FOB is a reasonable guess.
Freight remains a big issue. Sources say rates remain a major cause of concern.
Just a month ago some traders were talking about freight rates between the Arab Gulf producers and Pakistan or India’s west coast at just under $10/mt. Now the price is pegged in the upper teens, with a real possibility that it could once again hit the mid-$20s/mt FOB.
The issue, said one source, is that ship owners are putting many of their vessels to the side until really needed. Those that are still plying the seas are in set routes. Any deviation adds additional costs.
None of the producers are said to be operating at full capacity. Many have long-term deals or contracts with buyers from the U.S. to India, and so are able to keep production and shipments going.
Pakistan: A provincial minister of agriculture is not making TCP’s job any easier. Arbab Muhammad Ayub Jan told Pakistani media that at least 300,000 mt is needed quickly to avert a disaster with local crop outputs. This is above and beyond what the central government claims is needed for the rest of the country.
Sources say the province in question regularly experiences shortages of urea because of poor transportation. Few in the industry are taking the panicky tone of the minister seriously, but are keeping an eye on what happens next.
Political fortunes have risen and fallen based on urea distribution in the past, said one source.
The urea being purchased under the TCP tender that closes Feb. 21 is said to be for buffer stocks rather than immediate distribution to the farmers. The international urea community is in general agreement that the tender is not being called out of a dire need for tons. One trader noted that if the price is not to the liking of TCP – that is, significantly lower than the current Middle East quoted price of $305/mt FOB – the company may scrap the tender just as it did earlier this year.
The wild card in the tender may be the freight rates.
The tender calls for offers to be on a delivered basis. Producers have been anxious to play the “low freight” card to claim higher netbacks on their offers. Now, say sources, freight from Yuzhnyy and the Arab Gulf to Pakistan is on the rise. If a producer and trader want to do business with TCP, said one source, the netback may have to reflect a softer urea market than last week’s close.
India: Sources report no one in India is jumping up and down for another tender. The finance ministry is still upset with the amount having to be paid in subsidies, even though the last round of purchases was significantly cheaper than the previous year’s.
So far the Department of Fertilizer has not issued a call for any new purchases. Sources say the stockpiles in India are sufficient to take care of the first couple of months of the next application season.
The delay in buying could help India as producer stockpiles build up following the TCP tender.
Black Sea: With the TCP tender looming, sources say urea and freight rates are climbing. Asian sources say a buyer might get his calls answered at $280/mt FOB, but $285/mt FOB will guarantee a meeting.
Some in Asia have said prices in the $280s/mt FOB reflect a lot of paper trades. Traders, he said, are moving tons back and forth in an effort to show movement in an otherwise stagnant market.
Others, however, say the price has well and truly moved into the $280s/mt FOB, with $300/mt FOB the near-term target.
Indonesia: PIM in Indonesia was going to hold a selling tender earlier this month, but scrapped the deal once the government made it clear support of the local market is a priority. Sources say the domestic market in Indonesia is stronger than the international market at this time. The producer can placate the government – which is facing an election in the next few weeks – and make money by withholding its tons from the international market.
Sri Lanka: The joint tender of CFC and CCF closed Friday, Feb. 20, with a clear indication that traders and producers see the global price moving up.
With freight rates pegged at $40-50/mt, depending on who one talks to and the cost of the financing, Middle East material is clearly coming in above $310/mt FOB.
| Offering company | Quantity (mt) | US$/mt | Comments |
| U.D Buch Chemical Int. | 12,000 | 340.00 FOB | |
| 365.00 CFR | |||
| 380.00 CFR | 180 days | ||
| Transammonia | 24,000 | 383.00 CFR | 180 days |
| ETA | 24,000 | 425.97 DDP | 180 days |
| 383.50 CFR | 180 days | ||
| Kunsun | 12,000 | 370.00 FOB | |
| 390.00 CFR | 180 days | ||
| Toepfer | 24,000 | 368.68 FOB | |
| 378.36 CFR | |||
| 394.55 CFR | 180 days | ||
| Helm | 12,000 | 387.75 CFR | Sight |
| MidGulf | 24,000 | 405.00 FOB | 425.00 CFR | Sight |
| 435.00 CFR | 180 days |
While the Middle East is the most likely source of much of the material offered, some cargoes could come from Vietnam using cross-border Chinese material, or the Black Sea. Depending on the dates for delivery, some Indonesian product might also be considered.
The higher prices, to industry observers, indicate a clear sign that stockpiles for export are not where buyers would like them to be. All eyes will not turn to the TCP/Pakistan tender to see if higher prices and lower availability are indeed the near-term trend.
NITROGEN SOLUTIONS
Eastern Cornbelt: UAN-32 pricing to the dealer remained at $275-$285/st ($8.58-$8.91/unit) FOB regional terminals. An Indiana source pegged the UAN-28 market last week at the $245/st ($8.85/unit) FOB level for prompt tons.
The REMC plant in East Dubuque is expected to return to full production in mid-March, according to company parent Rentech Inc.
Western Cornbelt: The UAN-32 market was quoted in the $265-$285/st ($8.28-$8.91/unit) range FOB regional terminals to the dealer. One Missouri source pegged the common dealer price for cash tons at the $280/st ($8.75/unit) FOB mark last week.
Northern Plains: The UAN market remained at $8.75-$9.25/unit FOB regional terminals, with delivered UAN-28 unchanged at the $265/st ($9.46/unit) level in North Dakota.
Northeast: The UAN-30 market was quoted at $250-$260/st ($8.33-$8.67/unit) FOB regional terminals, with most reporting dealer prices commonly in the upper half of that range FOB Baltimore or Philadelphia. In upstate New York, UAN-32 to the dealer was posted at $296/st ($9.25/unit) FOB terminals for prompt tons. Both ranges were down slightly from last report.
Eastern Canada: UAN-28 pricing to the dealer remained as high as $545-$555/mt ($19.46-$19.82/unit) FOB in Ontario, with UAN-32 referenced at the $632/mt ($19.75/unit) FOB level from some regional suppliers.
Western U.S.: Effective Feb. 19, Agrium’s UAN-32 postings moved to $305/st ($9.53/unit) DEL in Washington, Oregon excluding Malheur County, and northern Idaho; $310/st ($9.69/unit) rail-DEL and $315/st ($9.84/unit) truck-DEL in southern Idaho, Nevada, Utah, and Oregon’s Malheur County; $313/st ($9.78/unit) FOB Sacramento, Calif.; $335/st ($10.47/unit) DEL in Montana, northern Wyoming, and central California; and $340/st ($10.63/unit) DEL in northern California. Agrium’s UAN-28 postings in Montana and northern Wyoming moved on Feb. 19 to $293/st ($10.46/unit) DEL.
AMMONIUM NITRATE
U.S. Gulf: The market remained quiet. While Terra has been having an ammonia turnaround at its Yazoo City plant, it has been making AN using existing inventories and railed-in product.
Western Cornbelt: Ammonium nitrate was steady at $270-$305/st FOB, with the upper end reported in Missouri.
Eastern Canada: Ammonium nitrate pricing was up slightly from last report at $655/mt FOB to the dealer out of regional shipping points.
Western U.S.: Agrium’s ammonium nitrate solution 20-0-0 posting moved on Feb. 19 to $197/st FOB Kennewick, Wash.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was steady at $165-$200/st FOB in the region. One source reported steel mill grade sulfate pricing as low as $145/st FOB at mid-month.
Western Cornbelt: The granular ammonium sulfate market was pegged at $165-$200/st FOB in the region.
Northern Plains: Granular ammonium sulfate was reported at $165-$205/st FOB and $205-$235/st DEL in the region, depending on location and supplier. Those ranges reflected a slight increase from last report.
Northeast: The granular ammonium sulfate market was quoted at $160-$175/st FOB and $182-$200/st DEL in the region last week.
Eastern Canada: Ontario sources continued to peg the granular ammonium sulfate market at $545/mt FOB to the dealer, with reports of fine grade ammonium sulfate available for as low as $152/mt FOB in the region.
PHOSPHATES
Central Florida: PhosChem’s sale of 1.25 million mt to India last week kickstarted not only the export market but domestic markets as well, as producers and traders both saw an increase in sales. TFI said inventories of DAP/MAP fell by more than 230,000 st in January, while phosphate processing was running at 30 percent of capacity. After PhosChem announced the India deal and sales began rising, Mosaic said it planned to increase production – but not to pre-curtailment levels. However, late last week PCS said it did not plan to increase its output at either Florida or North Carolina. Although inventories were down in January, they have still not fallen to normal levels.
Sulfur suppliers confirmed reports of increased phosphate production as demand for sulfur picked up last week.
Generally, phosphate prices appeared to have hit bottom and were moving upward. Traders out of Central Florida were making sales of railcars around $320/st FOB last week, while Mosaic was getting as much as $315/st FOB for DAP and CF posted a price of $310/st FOB. Mosaic charges $10/st FOB more for MAP than DAP, and CF has a premium of $20/st FOB for MAP.
The Central Florida DAP price range moved from $305-$315/st FOB the previous week to $310-$320/st FOB based on sales last week. PCS Sales had no published price. The price from Agrifos was $350/st FOB for trucks and $345/st FOB for rail shipments.
U.S. Gulf: On Wednesday, Feb. 18, after PhosChem announced the big sale to India, NOLA DAP barge sales took a sudden swing upward and prices began to follow suit. On Tuesday, a trader made a sale at $310/st FOB; the following day, the same trader sold another DAP barge at $315/st FOB. Others obtained even higher prices, a sign of life in the market.
In Oklahoma, which has alternated from warm to cold and back again, wheat farmers feared a freeze could hurt their crops, which were farther along than normal. Those growers had a good crop for the first time in several years last season and need another successful year. DAP was moving well out of terminals along the Arkansas River, and was $360/st FOB at most locations. Other areas, including upriver warehouses, were selling for as much as $370/st FOB. The difference of $40-$50/st FOB between the barge and the terminal prices works for operators.
CF posted new prices for NOLA DAP barges to January. In March, DAP will be $325/st FOB, $335/st FOB April through June, $345/st FOB July and August, $370/st FOB September, and $380/st FOB October through December. CF’s premium for MAP was $20/st FOB.
Inventories were on the decline in January, and the large buildup of NOLA DAP barges was quickly disappearing – to perhaps below 100. Mosaic was beginning to increase its production to make certain it can fulfill demand in both domestic and export markets. Some traders said they were out. Another large operator reported it decided to stop NOLA DAP barge sales and declined an offer of $315/st FOB last week. Instead, the plan was to watch for new developments in the market.
Corn was the key for DAP sales, and the big question was how much farmers would actually plant. Estimates ranged from 82 to 87 million. The big question for corn was ethanol production. In some areas, ethanol plants have shut down as demand dropped due to lower oil prices.
The NOLA DAP barge price range last week moved up from a low of $310-$315/st FOB the previous week to $310-$320/st FOB.
Eastern Cornbelt: The DAP market was quoted at $365-$385/st FOB river terminals in the region, reflecting a slight increase from last report. MAP was $15/st higher than DAP. 10-34-0 continued to be quoted in a very broad range at $650-$825/st FOB in the region, with the low in Illinois and upper end reported in Indiana on a spot basis. One source reported a recent 10-34-0 sale in Ohio at the $750/st DEL mark to the dealer.
Western Cornbelt: DAP was quoted at $360-$385/st FOB regional warehouses to the dealer, with MAP priced $10-$15/st higher. The 10-34-0 market continued to be quoted in the $625-$675/st FOB range in the region.
Northern Plains: The DAP market was pegged at $370-$385/st FOB the Twin Cities, with MAP $10-$15/st higher. 10-34-0 remained at $650-$700/st FOB in Minnesota, and tons were reportedly limited.
Northeast: The DAP market was quoted at $405-$442/st FOB regional warehouses to the dealer, with MAP at $420-$457/st FOB. 10-34-0 was reported at $990/st FOB the tank in upstate New York, with some reporting spot pricing quotes as high as $1,100/st DEL to points in Pennsylvania. Those 10-34-0 numbers reflect a sizable jump from last report, and sources said inventories were low.
A Delaware contact reported fairly brisk movement of lime and some dry fertilizer on small grain acreage prior to the midweek moisture, but others continued to talk of expected cutbacks in usage for some products this spring, particularly potash.
Eastern Canada: MAP was quoted at $954-$970/mt FOB in Ontario, down from last report. No current prices were reported for DAP or TSP in the region due to inactivity.
U.S. Export: The phosphate export market surged last week. The biggest news, of course, was PhosChem’s sale of 1.25 million mt to two large customers in India, IFFCO and IPL. Deliveries will begin in March and escalate quickly. That deal was a major breakthrough for PhosChem’s members, who have been struggling with slow sales and high inventories for the past few months. Member Mosaic said it would begin to increase production to meet the higher export demand and the domestic market, which also found new life last week.
In addition, PhosChem sold another 40,000 mt to various customers in Australia, Central America, and Africa last week at prices between $365-$367/mt FOB. The bulk of the DAP/MAP sales were into Australia.
Gavilon sold 10,000 mt into Argentina at a price believed to be $360/mt FOB, and KeyTrade dealt an unspecified number of tons into Vietnam. Vietnam has become a solid market because of China’s 110 percent tax on phosphate exports. Brazil was back in the market last week, but the source, amount, and price were not available, and a tender for 275,000 mt was issued in India.
However, exports in January were down compared to last year. Total DAP exports were 211,421 mt, and MAP exports amounted to only 45,866 mt – both down more than 40 percent from 2008. Naturally, India remained the biggest DAP customer with 143,793 mt, followed by Vietnam at 24,300 mt and Canada at 20,032 mt. Sales of MAP were made only to Canada at 41,357 mt, and the Dominican Republic, 4,411 mt.
Sri Lanka: The just-closed tender in Sri Lanka for at total of 24,000 mt of TSP indicates to Asian sources a strong demand for TSP. One source added the demand should remain strong for the next few weeks.
| Offering Company | Quantity (mt) | US$/mt | Comments |
| ETA Dubai | 12,000 | 398.27 DDP | |
| 350.00 CFR | 180 days | ||
| Helm | 12,000 | 355.00 | 180 days |
| Swiss Singapore | 12,000 | 338.00 FOB | |
| 353.00 CFR | |||
| 365.78 CFR | 180 days | ||
| Valency International | 12,000 | 359.00 FOB | |
| 372.80 CFR | |||
| 384.80 CFR | 180 days | ||
| Samsung | 12,000 | 421.00 CFR | |
| 441.00 CFR | 180 days | ||
| 20,000 | 401.00 CFR | ||
| 421.00 CFR | 180 days | ||
| MidGulf | 24,000 | 465.00 CFR | |
| 475.00 CFR | 180 days |
POTASH
Eastern Cornbelt: Most sources tagged the potash market in the $725-$775/st FOB range in the region from brokers or resellers, with no new sales to test the market.
Western Cornbelt: Potash out of regional warehouses was tagged in the $700-$750/st FOB range to the dealer, depending on grade and location. In Missouri, the market was quoted at $710/st FOB for red granular and $720/st FOB for white granular potash.
Northern Plains: Potash pricing FOB Saskatchewan mines remained at reference levels of $767/st FOB for standard, $780/st FOB for soluble, $772/st FOB for granular, and $780/st FOB for white granular. Delivered potash in North Dakota was pegged at $830-$850/st. Out of regional warehouses, the market was quoted at $750-$800/st FOB, depending on grade, location, and supplier.
Northeast: Potash was pegged at $815-$850/st FOB to the dealer for coarse or granular potash, with delivered pricing quotes in the $850-$920/st range, depending on grade and location.
Eastern Canada: Potash remained at posted levels of $988-$1,023/mt FOB the mine, with the upper end reflecting reference pricing FOB Sussex, N.B. Out of Ontario warehouse locations, sources quoted red granular potash at $1,025/mt FOB and white granular at $1,034/mt FOB. Sources continued to talk of cutbacks in potash usage this spring, but one noted that much depends on the price of corn. “If it goes up, demand figures could change for fertilizer of all kinds,” he said.
The K-Mag market was quoted at $611/mt FOB in Ontario, and sulfate of potash was reported at $1,075/mt FOB for reference pricing to the dealer.
Russia: Uralkali is reportedly cutting production to 25 percent of capacity for the first quarter, according to reports out of Russia late in the week. The cuts are due to weak market conditions.
SULFUR
Tampa: The serious oversupply situation for the sulfur industry eased a bit last week – at least in terms of growth – as phosphate production began to increase. PhosChem’s announced 1.25 million mt sale into India prompted Mosaic to begin running its processing plants at a higher rate, as phosphate inventories were declining at the same time offshore and domestic demands were increasing.
“We’re no longer in a panic mode, but we’re still nervous,” one source said of the change.
In addition to improvements in the phosphate industry prospects, a large number of refineries were on turnaround, and Martin had its new priller unit at Beaumont up and running. The facility now produces about 4,500 mt/day. A vessel was expected to be loaded with 50,000 mt this week.
The outlook for the phosphate industry for the next few months was much brighter, and sulfur will follow along. Sources say if the situation continues to improve by the end of the quarter, the price for the next quarter will not likely go down from the current $0.00/lt Tampa, and could reach back into positive territory – although not by much.
A fire at a CSX railroad bridge forced some sulfur cars to be rerouted last week, but that situation had improved by the end of the week after traffic on the bridge was restored. Sulfur transportation was not a problem elsewhere last week.
West Coast: Negotiations for first quarter contracts were continuing last week, but a resolution was possible sometime this week, sources said.
Vancouver: Sulfur suppliers were negotiating new semester contracts with Brazil last week, and it was probable the $200/mt price will come down drastically.
Pakistan: OGDC on Feb. 18 issued a tender to sell 7,000 mt of sulfur at a minimum base price of US$73/mt in 14 lots ex-Dakhni, Punjab. The last date to receive bids is Feb. 25.
MARKET NOTES
India: A recently announced interim budget allocated Rs 758.68 billion for fertilizers in 2008-09, up from Rs 318.16 billion in 2007-08. This does not cover the entire subsidy bill for the current year, and spillover is expected into the next year. The subsidy for 2009-10 has been pegged at Rs 499.99 billion on the assumption that international prices of fertilizer and raw materials will remain affordable.
- Subsidy on imported fertilizers – Budget estimate for 2008-09: Rs 72.38 billion. Actual expenditure: Rs 109.81 billion. Budget estimate for 2009-10: 78 billion.
- Subsidy on decontrolled fertilizers / Payment to manufacturers/agencies for sale of decontrolled fertilizers – Budget estimate for 2008-09: Rs 108.47 billion. Actual expenditure: Rs 653.51 billion. Budget estimate for 2009-10: 336 billion.
- Special securities issued to fertilizer companies for sale of decontrolled fertilizers: Rs 170 billion.
- Subsidy on indigenous fertilizers – Budget estimate for 2008-09: Rs 129 billion. Actual expenditure: Rs 195.16 billion. Budget estimate for 2009-10: 85.80 billion.
- Special securities issued to urea companies: Rs 30 billion.
- No allocation has been made for capital subsidy for conversion of four existing FO/LSHS plants to natural gas. An allocation of Rs 1.50 billion was made in 2008-09, but this fund was not utilized.
- No allocations have also been made for write-off of loans and penal interest in any public sector company, including MFL and FACT.