Fertiliser shares dip as international costs surge, farmers are hit laborious

DAP bazaar mein nahi hai (there’s no di-ammonium phosphate in the market),” says Pritam Singh Hanjra.

This farmer from Urlana Khurd village within the Madlauda tehsil of Haryana’s Panipat district is, like many others, desperately trying to find India’s second-most consumed fertiliser after urea. Containing 46% phosphorous, which is important for root institution and progress, farmers largely apply DAP as a basal dose earlier than sowing.

“It is neither available at the nearby Madlauda and Safidon mandis nor the more distant ones at Karnal and Kaithal. Farmers who go to sell paddy (currently being harvested) normally bring back DAP for their next wheat crop on the same tractor trolleys to save on burning diesel. But this time, they are all returning empty,” notes Hanjra.

Farmers require about 110 kg of urea, 50 kg of DAP and 20 kg of MOP (muriate of potash) for each acre of wheat. “The first dose of urea can be given 25-26 days after sowing. But DAP cannot wait and we need it well before sowing starts first week of November,” he provides.

The desperation is extra for potato, the place sowing is already underway in Punjab and extends from mid-October to early-November in Uttar Pradesh. The fertiliser requirement, per acre, for it’s round 110 kg urea, 90 kg DAP and 80 kg MOP.

Harjinder Singh from Malliwal village in Shahkot tehsil of Punjab’s Jalandhar district plans to domesticate potato on 85 acres, together with 47 acres of his personal and the remaining taken on lease.

“I have just 30 bags (each of 50 kg) of DAP and 10 bags of 12:32:16 (a complex fertiliser containing 12% nitrogen or N, 32% phosphorus or P and 16% potassium or K). These will suffice for hardly a fourth of my area,” he complains.

The image projected by farmers – there are viral media movies of lathi costs and even vans being raided – is in keeping with the shares place of key vitamins, as per the federal government’s personal knowledge.

Opening shares for this month had been lower than half of their year-ago ranges within the case of DAP and MOP, whereas additionally decrease for urea and NPKS complexes.

The foremost purpose for the precarious shares – forward of rabi plantings and in addition essential Assembly polls in Uttar Pradesh, Punjab and Uttarakhand, scheduled for February-March – is surging international costs.

The landed value of imported DAP in India is now $675-680 per tonne (price plus freight), in comparison with $370 presently final yr. MOP was imported at $230 per tonne a yr in the past, whereas it’s accessible for not lower than $500 right now.

Prices have equally soared for urea (from $280-285 to $660-665) and in addition intermediates resembling phosphoric acid (from $689 to $1,160), ammonia ($230 to $615-625), rock phosphate ($100 to $150) and sulphur ($80-85 to $250-260).

The Narendra Modi authorities, on October 12, authorized a rise within the subsidy on DAP from Rs 24,231 to Rs 33,000 per tonne, in addition to that on three NPKS complexes (from Rs 18,377 to Rs 20,377 for 12:32:16, Rs 16,293 to Rs 18,293 for 10:26:26 and Rs 13,131 to Rs 15,131 for 20:20:0:13, Zero refers to zero potassium, 13% Sulphur.).

The resolution was taken to make it viable for fertiliser companies to import and in addition cease them from elevating most retail costs (MRP) too sharply, particularly given the upcoming state elections. Some firms had already hiked the MRP of the favored 12:32:16 complicated from Rs 23,700-24,000 to Rs 34,000 per tonne. With the newest subsidy announcement, that’s anticipated to be partially rolled again to Rs 29,000-29,500 ranges.

But the primary concern is availability: Has the upper subsidy come too late?

“There would certainly be incentive to import more now. I expect ships to start arriving by end-October to early-November. The government should undertake 24/7 surveillance so that the imported material is moved directly to the consumption centres rather than being stocked. Secondly, some kind of rationing is required. DAP can be reserved mainly for wheat-growing areas, with 12:32:16 going for oilseeds; 10:26:26 for rabi paddy, pulses, sugarcane and potato; and 20:20:0:13 for universal application,” business knowledgeable G Ravi Prasad advised The Sunday Express.

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