Indian DAP imports should be sufficient – trader

04 December 2007 17:26  [Source: ICIS news]

NEW DELHI (ICIS news)--Imports of diammonium phosphate (DAP) fertilizer should just about be sufficient to tide over Indian farmers for the Rabi crop despite fears of major shortages, a trader claimed prior to the start of the Fertilizer Association of India (FAI) conference on Tuesday.

 

“The US export organisation Phosphate Chemical Export Association (PhosChem) has already committed to ship 1.6m tonnes of DAP to Indian Potash Limited (IPL) up to March 2008 of which 1.2m tonnes has already been delivered,” said the trader.

 

Jordan will ship a total of 450,000 tonnes, of which 350,000 tonnes will have been delivered by the end of December, added the source.  “Factor in 150,000 tonnes coming under US producer Mosaic’s own distribution system and 150-200,000 tonnes of DAP from Russia and you are not far off the 2.8m tonnes India imported in 2006”.

 

The trader acknowledged that the supply/demand balance for DAP was “still a touch and go situation,” conceding that there could be “pockets of shortages throughout the country,” especially as, even after arrival, product could take up to four weeks to get through government distribution channels.

 

Even so, it was not thought that any new contract between IPL and PhosChem was imminent. “I doubt whether anything will be agreed on this year,” said the trader, given the high international price of DAP.

 

The producer added that there would also be little chance of additional imports from Jordan until existing shipments were completed and fresh negotiations began in March 2008.

By: Mike Nash
+44 20 8652 3214

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