Di-Ammonium Phosphate : Shortage
A shortage of di-ammonium phosphate (DAP), a key fertiliser required at the time of sowing, is undermining crop production prospects for the current rabi season.
- DAP sales in India during April-September 2024 dropped to 45.72 lakh tonnes, a 27.2% decline from 62.83 lakh tonnes in 2023, signalling reduced availability for farmers ahead of sowing seasons.
- Imports fell to 19.67 lakh tonnes from 34.53 lakh tonnes in 2023, and domestic production also decreased slightly to 21.53 lakh tonnes in 2024 from 23.29 lakh tonnes in 2023, creating a supply crunch.
- Farmers are paying ₹1,600-1,650 per bag of DAP, well above the government-fixed MRP of ₹1,350, driven by international costs and shortages.
- While DAP sales fell, urea and other complex fertilizers saw increases. Urea sales rose to 189.11 lakh tonnes from 183.95 lakh tonnes in the same period
- With a government subsidy of ₹21,911 per tonne, but actual costs reaching ₹65,000 per tonne, the import of DAP remains unviable for private players, worsening the shortage.
