Source: IE
Context: 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.
Key Data Points on DAP (Di-Ammonium Phosphate):
· Sales decline: 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 and production: 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.
· Price increase: 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.
· Fertilizer sales trends: 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.
· Subsidy and costs: 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.
About Di-Ammonium Phosphate (DAP):
- Key fertilizer for Indian agriculture: DAP is the second most used fertilizer in India after urea. It is highly preferred for its balanced content of Nitrogen (18%) and Phosphorus (46%), which are essential macronutrients for plant growth.
- Nutrient benefits: DAP provides both nitrogen and phosphorus, which are vital for early root development and overall plant health, making it critical at the sowing stage.
- Manufacturing process: DAP is produced by reacting ammonia with phosphoric acid under controlled conditions. It is widely manufactured in fertilizer plants across India.
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