DAP shortage dampens rabi crop prospects

“For wheat, at least one 50-kg bag of DAP is required per acre and this has to be applied at the time of sowing along with the seeds. Right now, both DAP and 12:32:16 (complex fertiliser) are in short supply. I hope the situation will improve once plantings take off in November (post-Diwali),” said Pritam Singh Hanjra, a farmer from Urlana Khurd village in Madlauda tehsil of Haryana’s Panipat district.

DAP contains 46 per cent phosphorus or P, a nutrient crops need at the early growth stage of root establishment and development. Alternatives to DAP include complex fertilisers containing nitrogen (N), P, potassium (K) and sulphur (S) in varying proportions, such as 12:32:16:0, 10:26:26:0, 20:20:0:13 and single super phosphate or SSP (0:16:0:11). These have much less P content compared to DAP.

While there is still time for wheat sowing, potato plantings have already commenced. A tuber crop that grows underground, potato requires 3 bags of DAP per acre. “Farmers who manage to get DAP are having to shell out Rs 1,600-1,650 per bag, more than the government-fixed maximum retail price (MRP) of Rs 1,350,” said Doongar Singh Chaudhary, a cold store owner at Khandauli, a large potato-growing belt near Agra in Uttar Pradesh.

While high prices – table potatoes are selling from cold stores at Rs 1,800-2,200/quintal – have made farmers very keen to plant this time, they also have to pay more for DAP and seed. “Seed potato prices are currently Rs 2,000-2,500/quintal, whereas last year it was only Rs 1,000-1,200,” added Chaudhary.

According to official data, the all-India sales of DAP, at 45.72 lakh tonnes (lt) during April-September 2024, were 27.2 per cent, lower than the 62.83 lt for April-September 2023. Imports (19.67 lt versus 34.53 lt) and domestic production (21.53 lt versus 23.29 lt) of the fertiliser, too, were lower for this period relative to last year.

Sales of SSP fertiliser also fell to 23.55 lt during April-September 2024, from 29 lt during April-September 2023. However, sales of both urea (189.11 lt versus 183.95 lt), complex fertilisers (72.49 lt versus 61.36 lt) and muriate of potash (9.27 lt versus 7.74 lt) were higher during the first six months of 2024-25, compared to April-September 2023-24.

The shortage of DAP is being blamed on higher global prices, aggravated by the government policy of fixing a low MRP with inadequate subsidy concession to enable imports.

At the current MRP of Rs 1,350 per bag (Rs 27,000 per tonne) and subsidy of Rs 21,911, the gross realisation for companies comes to Rs 48,911 per tonne. On the other hand, the landed price of the DAP imports contracted last from Saudi Arabia and Morocco was 642-644 dollars per tonne or Rs 53,930-54,100. Adding import duty, bagging, port handling, interest, dealer margins other costs will take it to about Rs 65,000 per tonne. That makes imports unviable, especially for private players.