Central Govt has underpriced DAP: Fertiliser industry

“A fertiliser with 46% P should be priced higher than those containing only 26% or 32% of the same nutrient. A proper pricing hierarchy would mean making DAP the most expensive, followed by 12:32:16:0, 10:26:26:0, MOP and 20:20:0:13 in that order. That will encourage balanced nutrient application by farmers,” said N. Suresh Krishnan, chairman, FAI.

DAP sales during April-October 2024, at 56.93 lakh tonnes (lt), were 25.4% lower than the the 76.31 lt for April-October. The fall in sales, combined with lower opening stocks (11.52 lt on November 1, 2024, as against 17.69 on November 1, 2023), has raised worries, given that P is an essential nutrient for root establishment and development of the crop. Farmers normally apply DAP at the time of sowing along with the seeds.

Krishnan, however, claimed the decline in DAP sales has been compensated to an extent by higher offtake of complexes. Sales of complex fertilisers, at 87.20 lt during April-October 2004, were 23.5% higher than the 70.62 lt for April-October 2023. “Farmers have substituted DAP…with complexes such as 20:20:0:13 that contains less P but also S,” he pointed out.

The FAI has expressed concern over the deteriorating nutrient balance in India, with over-application of N through urea. The ideal average NPK ratio is 4:2:1. “This ratio was almost close to that, at 4.3:2:1, in 2009-10, but got distorted to 8.2:3.2:1 in 2012-23. It got somewhat corrected to 6.5:2.8:1 in 2020-21, but again widened to 7.7:3.1:1 in 2021-22, 11.8:4.6:1 in 2022-23 and 10.9:4.4:1 in 2023-24,” the association noted.