Category: Production vs imports

What lies behind DAP shortage

DAP is a widely used complex fertiliser that supplies 46% phosphate or P nutrients besides 18% Nitrogen (N). The annual consumption of DAP is around 10 to 11 million tonnes. During the Rabi crops season (October 2024 – March 2025), many parts of the country are reporting a shortage of di-ammonium phosphate (DAP). DAP is a widely used complex fertiliser that supplies 46 per cent phosphate or P nutrients besides 18% Nitrogen (N). The annual consumption of DAP is around 10 to 11 million tonnes. Against this, domestic production is less than half 4.5 – 4.8 million tonnes. The deficit is made up of imports from countries such as Russia, Morocco, Saudi Arabia, Jordan, Egypt, and China. According to the...
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Nutrient-based subsidy: Support and scrutiny balance

While companies have the flexibility to set their MRP, these prices remain under close government scrutiny, ensuring affordability without undermining competition Just around the time when the Rabi Crops season (October 2024 – March 2025) has commenced, there was a shortage of di-ammonium phosphate (DAP) in many parts of the country. DAP is a widely used complex fertiliser that supplies 46 per cent Phosphate or ‘P’ nutrients besides 18 per cent Nitrogen or ‘N’ (a ton of DAP contains 180 kg ‘N’ and 460 kg ‘P’). The annual consumption of DAP is around 10 to 11 million tons. Against this, domestic production is less than half at around 4.5 – 4.8 million tonnes. The deficit is made up of imports...
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Sustainable agriculture with nano-fertilisers

As India gears up to ramp up production of nano-fertilisers, questions arise regarding the technical feasibility and logistical implications of transition Recently, the Union Minister for Chemicals and Fertilisers Mansukh Mandaviya stated “Consumption of urea this fiscal is likely to be 8 percent less than in FY 2022-23 due to the use of its liquid nano variant. Because of this and higher domestic production, import of urea, the soil nutrient that accounts for 70 per cent of the fertiliser subsidy bill, declined more than a fifth on year in 2023. Further spread of nano urea consumption and the start of a new large urea plant (Talcher in Odisha) by September 2023 would lead to elimination of imports in two-three years”....
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Self-reliance in fertilisers

Potash (K), and phosphate (P) are among the three major plant nutrients (the third being nitrogen or ‘N’) needed for increasing the production of foodgrains and other agricultural products. Their requirements are met mostly from imports. A farmer sprinkles fertiliser on paddy crop in Koppal district. The enactment of two laws, viz. the Mines and Minerals (Development and Regulation) Amendment Act, 2023, and the Offshore Areas Mineral (Development and Regulation) Amendment Act, 2023, in the monsoon session of Parliament bodes well for the Indian fertiliser sector. While the first law paves the way for the auction of critical minerals such as potash and phosphate blocks for exploration and processing in India, the second law provides a fixed 50-year production lease for offshore minerals....
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‘Indigenous’ fertilisers must be explored

The government must pursue indigenous sources of fertiliser raw materials to minimise India’s vulnerabilities on imports The enactment of two laws viz. The Mines and Minerals (Development and Regulation) Amendment Act, 2023 and the Offshore Areas Mineral (Development and Regulation) Amendment Act, 2023 in the just concluded monsoon session of the parliament bodes well for the Indian fertilizer sector. While the first law paves the way for the auction of critical mineral potash (besides lithium and graphite) blocks for exploration and processing in India, the second provides a fixed 50-year production lease for offshore minerals. Potash or ‘K’ is amongst the three major plant nutrients (the other two being Nitrogen or ‘N’ and Phosphate or ‘P’) needed for increasing production...
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Nano urea and some tall claims

Can nano urea help in achieving the stated objective? Can it help to make a dent in the subsidy? The government spends huge sums on fertiliser subsidy — the likely expenditure during the current financial year being about Rs 2,50,000 crore. Credit: AFP Photo Launching an ambitious programme for the promotion of liquid nano fertilisers at the two-day ‘Kisan Samman Sammelan’ at the Indian Agricultural Research Institute (IARI) on October 17, Prime Minister Narendra Modi exuded confidence that it would help attain self-sufficiency in the crucial sector and help farmers enhance their income while substantially reducing the impact on the environment. Already, the Indian Farmers Fertiliser Cooperative Limited (IFFCO) — a major fertiliser manufacturer — is producing indigenously-developed nano urea at its Nano Biotechnology Research...
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Nano fertiliser move can be a game changer

Nano fertilisers not just promise to cut down subsidy burden but also improve the income of farmers  Inaugurating function of the two-day “Kisan Samman Sammelan” at the Indian Agricultural Research Institute (IARI) on October 17, Prime Minister Narendra Modi announced two major policy initiatives — “One Nation, One Fertiliser” scheme under which all fertiliser manufacturing and market companies will sell all subsidized fertilisers under a single brand Bharat; and promote use of liquid nano fertilisers. While the government intends to use “One Nation, One Fertiliser” scheme to reduce the criss-cross movement of fertilizers that will eventually help reduce freight subsidy bills and make quality fertilizer available at lower cost, adoption of liquid nano urea is meant to help attain self-sufficiency...
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Fertiliser fears come to fore due to war

The crisis in Ukraine following the invasion by Russia has exposed the chinks in the Indian fertiliser industry. Despite predictions by successive governments during the last four decades that India would become self-reliant on the fertiliser front and putting in place policies aimed at achieving the goal, the country remains preponderantly dependent on imports for meeting the requirements of its farmers. The three most popular fertilisers used by farmers are urea, di-ammonium phosphate (DAP) and muriate of potash (MOP), which are the major sources of nitrogen, phosphate and potash respectively. Natural gas is the raw material/feedstock/fuel used for the manufacture of urea whereas phosphoric acid and ammonia are the prime raw materials (RMs) needed for making DAP. In the case...
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The war’s impact on our fertiliser industry

Had there been a free market scenario, the industry would have come under serious strain. But that is not to be as fertilisers are under control The crisis in Ukraine following invasion by Russia has sent shock waves through out the world economy. In India, even as the steep rise in energy import bill will affect almost all sectors of the economy, the impact on fertilizers will be more pronounced. At the outset, let us capture a few relevant facts. Despite prognostications by successive governments during the last four decades or so that India would become self-reliant in fertilizer availability and putting in place policies aimed at achieving the goal, even today, the country remains preponderantly dependent on imports for...
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Ukraine crisis – impact on Indian fertilizer industry

The crisis in Ukraine following invasion by Russia has sent shock waves through out the world economy. In India, even as the steep rise in energy import bill will affect almost all sectors of the economy, the impact on fertilizers will be more pronounced. At the outset, let us capture a few relevant facts. Despite prognostications by successive governments during the last four decades or so that India would become self-reliant in fertilizer availability and putting in place policies (in particular pricing and subsidy policies) aimed at achieving the goal, even today, the country remains preponderantly dependent on imports for meeting the requirements of its farmers. Three most popular fertilizers used by farmers are urea, di-ammonium phosphate (DAP) and muriate...
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