US-based PhosChem will supply 2 lakh tonnes

Phalguna Jandhyala

New Delhi, Aug 3 The global tender by India for the import of 1.5 million tonnes (mt) of di-ammonium phosphate (DAP) has been finalised at $495 per tonne cost and freight.

This price, though higher than last year’s import price, is lower as compared to most other countries where the current import price is between $505-510 per tonne.

The tender that was floated by Indian Potash Ltd (IPL) last month attracted seven companies and the price quoted was between $495 and $518 per tonne cost and freight.

According to industry sources, the US-based Phosphate Chemicals Export Association Inc (PhosChem) emerged as the most competitive bidder and the price that it quoted at $495 per tonne was taken as the base for deciding the cost at which the DAP would be imported. PhosChem is an association formed by Mosaic Phosphates Company, PCS Phosphates and CF Industries.

Apart from PhosChem, the other companies which had put in their bids include Helm AG of Germany, the US-based Transammonia Inc, Jordan Phosphate Mines Company, Keytrade AG and Ameropa of Switzerland and A.C. Toepfer International of Germany.

“PhosChem would be delivering two lakh tonnes and there could be a possibility that it might increase by around 10 per cent. The rest of the quantity is likely to be supplied by the other companies but at $495 per tonne,” the official said.

The official added that the delivery would be at Rozy, Kandla and Mundra ports.

Rabi season

According to the Department of Fertiliser estimates, the country requires over four mt of DAP in the coming rabi season. Since out of the four mt-plus requirement, only 2.5 mt can be supplied by domestic manufacturers, the Centre is keen that the imported DAP arrives well in time for the rabi sowing operations.

With neither the private sector companies nor state-owned MMTC Ltd showing willingness to contract imports, IPL is the sole company on which the Centre is pinning hopes for averting a potential crisis in the coming rabi season.

Related Stories:
DAP import prices may touch $500/t
DAP fertiliser shortage looms over South

(This article was published in the Business Line print edition dated August 4, 2007)
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