Centre acts to boost DAP availability, blames global suppliers
The Centre has said that it is taking steps to boost the domestic supply of Di-ammonium Phosphate (DAP) fertilisers and address issues of availability at local levels amid 60 per cent import dependence. The government has also blamed the shortage of DAP on the Red Sea issue and cuts in exports by some global suppliers.
October and November are the key two months for farmers to apply for DAP. As a result, 65- 70 per cent of the Rabi season’s total demand has to be met during this period.
“The government is taking all necessary actions in coordination with the states, railways, and fertiliser companies to resolve local availability issues and ensure expeditious supplies of DAP,” according to an official statement by the fertiliser ministry issued late on Wednesday.
Red Sea crisis impact
Despite challenges, the Department of Fertilizers has taken numerous steps to maintain adequate supplies of DAP to states, the statement said. “This year, due to the prevailing geo-political situations, such as less export to India by major suppliers and the Red Sea Crisis, the DAP supplies were affected,” the department said.
The department pointed out that the Red Sea crisis led to the diversion of vessels, including Phosphatic Acid vessels, via the Cape of Good Hope, resulting in longer voyage times and associated supply chain disruptions.
But many industry people said that the Red Sea crisis started in January, and this year, the shortage could have been avoided had there been an “effective strategy” chalked out well in advance. They also pointed out that similar transit time is taking place in the case of potash, in which India is 100 per cent import-dependent.
Business line on November 27 had published a report showing how despite 59 per cent jump in import during October the DAP demand for the month could not be met and sales were even lower than the year-ago.
According to the feedback compiled by the Agriculture Ministry, the combined requirement of DAP in the first two months of the Rabi sowing season was estimated at nearly 35 lakh tonnes (lt)—for October, 18.69 lt, and for November, about 16.14 lt. However, states revise the demand for a month based on the actual supplies and sales in the previous month.
The fertiliser ministry said on November 28 that imported and domestic DAP supplied to the States in October and November 2024 had become approximately 23 lt so far, excluding buffer stock available in the states. Official data show that the closing stock of DAP as of September 30 this year was 11.91 lt, whereas it was 21.74 lt a year ago.
In this Rabi 2024-25 season, over 17 lt of DAP arrived at various ports and were sent to states in October and November. The government said an additional 6.50 lt from domestic production was also made available. As reported by businessline, DAP import surged 58.6 per cent to 8.17 lt in October 2024 from 5.15 lt in the corresponding period last year.
Complex fertilizers usage
The government has also said that major states like Uttar Pradesh and Madhya Pradesh used complex fertilisers (combination of N, P, K, S nutrients) of various grades by 5 lt more than the year-ago period. In the entire country, sales of complex registered 10 lt higher in October-November, so far, than year-ago period.
Intensive efforts of the government resulted in the total availability of 34.81 lt of DAP and 55.14 lt of complex during the ongoing Rabi season till date, the statement said.
Official data show that the sales of DAP in major consuming states against their monthly demand in October were – Uttar Pradesh’s 2.26 lt sales against 5 lt demand, Madhya Pradesh’s 1.41 lt against 3.75 lt and Punjab’s 1.09 against 2.5 lt. Data also showed that sales were close to their respective availability in these three states.