India's DAP imports to rise on ferts plan

07 November 2008 15:54  [Source: ICIS news]

NEW DELHI (ICIS news)--India plans to import more diammonium phosphate (DAP) as a part of its initiative to substantially increase the supply of all fertilizers to the country’s farmers during 2008-2009, according to an Indian government statement released on Friday.

“The government has planned for further imports of DAP during the ensuing months, depending upon the requirement,” said the statement.

With these efforts, the statement said, farmers might not face a shortage of fertilizers.

According to the statement, India’s government expects DAP prices to decline further in international markets. DAP has decreased to $850/tonne from $1,300/tonne over the last few months.

The country has so far imported 4.5m tonnes of DAP, compared with 2.97m tonnes during the same period in the previous financial year, the statement said.

India had planned for the availability of 11.1m tonnes of DAP during 2008-2009, compared with 7.55m tonnes in the preceding year, the statement continued.

Of the 11.1m tonnes, the statement said, 6.75m tonnes had already reached the market.

The statement also said that India plans to make 28.8m tonnes of urea available to farmers. Of this, about 15.8m tonnes reached the market by October’s end.

The aggregated urea consumption for the previous year was 26.16m tonnes, the statement said.

India had planned to have 8m tonnes of NPK complex fertilizers available, according to the statement. Of this, 4.52m tonnes had already reached the market.

NPK complex fertilizer consumption was 6.5m tonnes in the previous year.

In the statement, India’s minister of chemicals and fertilizers voiced concern over reports that fertilizers were being smuggled out of the country through the “porous border”, without naming the countries believed to be receiving smuggled fertilizers.

It was thought that neighbouring countries, where fertilizers are costlier compared with the highly subsidized prices in India, were the destination.

The statement said India’s chemicals and fertilizers ministry had informed the country’s border security services of the illegal fertilizers trade.

The ministry also urged state governments to help prevent fertilizer smuggling, the statement said.

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By: Naresh Minocha
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