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India’s Government Boosts Domestic Di-ammonium Phosphate (DAP) Supply

National Bank for Agriculture and Rural Development NABARD in India • Mission Promote sustainable and equitable agriculture and rural development. • Functions Promote develop refinance financ 12
Credit: Business Line
  • Steps taken to increase domestic DAP supply amid 60% import dependence.
  • Causes of DAP shortage: Red Sea issue and global supplier export cuts.
  • October and November crucial for farmers to apply for DAP, meeting 65-70% Rabi season demand.
  • Government coordinates with states, railways, and fertiliser companies to resolve local availability issues.

Diammonium Phosphate (DAP) Fertilizer

  • Composition includes of ammonia and phosphoric acid, containing 18% nitrogen and 46% phosphorus.
  • It is highly soluble in water and soil, releasing phosphate and ammonium for plants.
  • Benefits includes aiding in tissue development, regulating protein synthesis, and meeting initial nitrogen and sulfur needs.
  • Application rates vary for pastures and forage crops, and lawns.
  • Storage advised in bulk sheds and covered with a tarp.
  • Risks include potential harm to plant roots and seedlings when DAP dissolves.

Red Sea Crisis Impact on DAP Supply in India

  • The Department of Fertilizers has been unable to maintain adequate DAP supplies due to geo-political situations and the Red Sea Crisis.
  • The crisis led to vessel diversion via the Cape of Good Hope, causing longer voyage times and supply chain disruptions.
  • Industry experts argue that the crisis started in January and could have been avoided with an effective strategy.
  • Despite a 59% increase in import during October, DAP demand for the month could not be met, and sales were lower than the year-ago.
  • The combined requirement of DAP in the first two months of the Rabi sowing season was estimated at nearly 35 lakh tonnes.
  • The government reported that imported and domestic DAP supplied to the States in October and November 2024 had become approximately 23 lt so far.
  • DAP import surged 58.6% to 8.17 lt in October 2024 from 5.15 lt in the corresponding period last year.
  • Major states like Uttar Pradesh and Madhya Pradesh used complex fertilisers by 5 lt more than the year-ago period.
  • Intensive government efforts resulted in the total availability of 34.81 lt of DAP and 55.14 lt of complex during the ongoing Rabi season till date.
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