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Fertiliser industry body Fertiliser Association of India (FAI) has pointed out that global prices of Di-ammonium phosphate (DAP) have risen in the last few months and said there will be a need to increase either the government subsidy or retail prices if the rates remain high in the international market. At present, fertiliser companies are selling the DAP at Rs 1,350 per bag of 50 kilograms. The association also demanded that urea, a key crop nutrient, should be brought under the Nutrient-based Subsidy (NBS) scheme on the lines of P&K fertilisers. This will help in correcting considerable disparities in MRPs (maximum retail prices) of urea and P&K fertilisers.

FAI Chairman N Suresh Krishnan has said that the global prices of DAP have risen to $595 per tonne from $440 per tonne in July this year. DAP was priced at $924 per tonne in April 2022. At this point in time with the current import price, viability will be a bit of a challenge in the case of DAP. He said ‘we may need either higher MRP or higher support from the government if the global prices maintain at the current level.’ 

He also expressed concern over a lower subsidy on the Muriate of Potash (MoP), which has resulted in this soil nutrient being costlier than DAP and thereby lesser consumption. Highlighting the progress in the Indian fertiliser sector, he said urea production is expected to rise to 30 million tonnes this fiscal from 28.5 million tonnes in the previous year. He expected the country to be self-sufficient in the next couple of years with a rise in domestic production.