DAP Fertiliser Shortage in India: FAI Says No, Production & Import Dip

New Delhi, Dec 3 (PTI) Fertiliser industry body FAI has asserted that there is no shortage of Di-Ammonium Phosphate (DAP) in the country despite fall in imports and production in the first seven months of this financial year.

Fertiliser Association of India (FAI) also demanded that the DAP should command the highest price among all non-urea fertilisers, because of its high nutritional value. It also stressed on the need to protect soil health.

"There is no shortage of DAP in the country," FAI Chairman N Suresh Krishnan told reporters here when asked about reports of non-availability of DAP in some parts of the country.

He, however, said there could be a fall in the closing stock of DAP at the end of the current fiscal year.

According to FAI data, the production of DAP declined to 25.03 lakh tonnes during April-October this fiscal, from 27.01 lakh tonnes in the year-ago period. Import of DAP declined to 27.84 lakh tonnes from 39.68 lakh tonnes during the period under review.

Sales of DAP, too, fell to 56.92 lakh tonnes from 76.31 lakh tonnes.

Krishanan, however, said the sales of DAP have improved in the last month.

He said the country requires around 10 million tonnes of DAP annually to meet domestic demand, of which around 60 per cent is imported. Imports from China has also declined so far this year.

The FAI Chairman also highlighted that sales of NP/NPKs (other than DAP) fertilisers have increased, compensating for the drop in sales of DAP.

Krishnan said the current MRP of the DAP is Rs 1,350 per bag and said the industry was not incurring losses at current subsidy offered by the Centre.

Among all non-urea fertilisers, he said DAP should command the maximum price because of its high nutrient value.

When asked about the ideal retail price of DAP, Krishnan did not specify any particular amount.

At present, the Muriate of Potash (MoP) is being sold at Rs 1,500-1,600 per bag, while the price of DAP is Rs 1,350 per bag. The government is providing a huge subsidy on DAP to ensure that farmers get this important nutrient at an affordable rate.

The FAI Chairman also talked about the huge volatility in the price of imported DAP during the last four years because of global conflicts. In view of the crisis in the Red Sea, the time duration for imports of fertilisers has also increased sharply.

International price of DAP (CFR-India) was USD 359 per tonne in September 2020, which increased to USD 945/tonne in July 2022. After that, it showed some ups and downs during the subsequent periods and in September 2024, the CFR (India) price of DAP was USD 632 per tonne.

"The international market is quite volatile. There has been volatility in prices of fertilizers and fertilizer raw materials/intermediates including natural gas/LNG during the past 4 years. About 80 per cent of feedstock i.e. natural gas for production of urea is imported.

"More than 90 per cent requirement of phosphatic fertilizers is met by import either in the form of raw materials or finished products and 100 per cent demand of MOP is met by import," FAI said.