Import of fertilisers dropped 44 per cent in May as global prices of DAP, MOP shot up. But industry sources said that there may be more imports in June as the government has told the companies to adjust the losses now when subsidy for Rabi season is announced.

However, a section in the industry expressed concerns over possible escalation of Israel-Iran war and feared there might be delays in receiving consignments as well as further surge in prices.

While imported Di-ammonium Phosphate (DAP) prices (CFR) touched $ 781/tonne before the Israel-Iran war from average $ 724/tonne in May, , Muriate of Potash (MOP) surged to $ 349/tonne from average $ 282/tonne, sources said.

Though government said that opening stock of urea, DAP, MOP and complex on June 1 was at 136.69 lakh tonnes (lt), which is sufficient to meet demand for the month estimated at 59.42 lt, the situation in DAP in particular does not look comfortable. Official data show that the closing stock of DAP on May 31 was 12.43 lt whereas demand for the month was pegged at 10.62 lt.

“As domestic production of DAP in May dipped over 15 per cent, and import also fell substantially, there may be issue with availability, even though the government says that over 12 lt was available on June 16 after factoring sales during first fortnight of this month,” a source tracking fertiliser sector said.

According to fertiliser ministry data, import of urea, DAP, MOP and complex dropped to 8.07 lt in May from 14.36 lt year-ago. These include urea import dipped 15.4 per cent to 2.91 lt, DAP by 58.3 per cent to 2.36 lt, MOP by 83.7 per cent to 0.33 lt and complex by 23.5 per cent to 2.47 lt.

Industry sources said that not only finished DAP, the raw material rates, which is needed to be imported to produce domestically have also increased. The price of imported Phosphoric Acid (CFR) has increased by about 11.29 per cent to $ 1,055/tonne in May from $ 948/tonne year-ago. But the price of imported Rock Phosphate (CFR) has been nearly flat during last few months and was average $ 173/tonne in May, against $ 175/tonne year-ago.

The government had approved ₹37,216.15 crore subsidy under the nutrient-based subsidy scheme for fertilisers during the current Kharif season which included nitrogen (N) at ₹43.02/kg, phosphorus (P) at ₹43.60/kg, potash (K) at ₹2.38/kg and sulphur (S) at ₹2.61/kg. While there was no hike in N and K nutrient subsidy, the government effected ₹12.80/kg rise in P and Re 0.85/kg in S from the subsidy rates announced for the Rabi 2024-25 season.

Meanwhile, the actual fertiliser subsidy in the first two months of the current fiscal has reached ₹23,356.14 crore which includes ₹19,045.44 crore for urea and ₹4,310.70 crore for P&K.

Published on June 22, 2025