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India Takes Swift Action to Ensure Steady DAP Supply with Support from States, Railways, and Fertilizer Companies

RR Team, November 27, 2024November 27, 2024

The Department of Fertilizers, Government of India, has taken swift action to maintain a steady supply of DAP (Diammonium Phosphate) to states across the country, despite facing global supply chain disruptions.

Due to geopolitical challenges like reduced exports from major suppliers and the ongoing Red Sea Crisis, DAP supplies to India were impacted. India relies heavily on imported DAP, with around 60% of the demand being met through imports. Additionally, domestic production also depends on imported raw materials, further complicating supply lines.

The Red Sea Crisis caused significant delays in shipments, including Phosphoric Acid, which had to be rerouted via the Cape of Good Hope, leading to longer transit times and disruptions in the supply chain.

Despite these hurdles, the government has ensured that over 17 lakh tons of imported DAP reached Indian ports in October and November 2024, while 6.50 lakh tons of domestic production was also made available to states. In total, nearly 23 lakh tons of DAP were supplied, excluding buffer stock.

In addition to this, major states like Uttar Pradesh and Madhya Pradesh have used 5 lakh tons more NPKS fertilizers compared to the previous Rabi season, signaling a positive shift. Nationwide, the consumption of NPKS fertilizers has increased by 10 lakh tons compared to last year.

Thanks to intensive government efforts, the total availability of DAP during the ongoing Rabi season stands at 34.81 lakh metric tons (LMT), and 55.14 LMT of NPKS. The government continues to coordinate with states, railways, and fertilizer companies to resolve any local supply issues and ensure a smooth, expeditious supply to meet agricultural needs.

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