Fertilizer Companies Increase DAP and NPK Rates in Response to Rising Input Costs


Plant fertilization

With input costs skyrocketing, fertilizer companies began to pass some of the cost on to farmers. According to sources, leading fertilizer IFFCO has increased the price of DAP from Rs 1,200 per bag to nearly Rs 1,350 per 50kg bag (an increase of 12.5%), while the price of a variety of NPKS has been increased to Rs 1,400 per 50 kg. bag from Rs 1,290 per bag (an increase of 8.5%).

The price increase for NPK-1 and 2, which are other grades of NPK fertilizers, was nominally Rs 20 per bag to Rs 1470 per bag. Existing stock will be sold at the old prices. IFFCO is one of the largest producers. DAP, as well as a major player in the urea-free fertilizer market.

According to some sources, other private companies are considering or have already increased their retail prices for non-urea fertilizers. According to business and trade sources, NPK in its various grades and compositions is one of the most widely used fertilizers in the west and south of the country during the Kharif season.

The price of NPK varies according to the grade and the proportion of the main raw material used in the fertilizer, namely nitrogen, phosphorus, potassium and sulphur. NPK is available in nearly 15 to 20 grades.

Meanwhile, industry sources have said the final picture of the actual retail price of a 50-kilogram bag of NPK will be determined by the amount of subsidy imposed by the nutrient-based subsidy scheme. which has been notified. by the central government for the financial year 2022-22

“The notification of the grant is expected to be announced soon”, said a senior industry official. Since the Russian-Ukrainian crisis, not only the price of finished DAP, NPKS and muriate of potash (MOP) has increased significantly, but the raw materials used in their production have also increased.

India imports nearly all of its MOP requirements, while DAP imports account for about half of its annual consumption. In the case of NPK, the country produces about 80% of annual needs on the domestic market, while urea requires imports to meet one-third of annual demand.

Since late February, the landed price of finished DAP in India has risen from around $900 per ton to nearly $1,050-1,100 per ton, an increase of 17-22%.

The landed price of phosphoric acid, which is set on a quarterly basis, was set at $1,530 per tonne for the January-March quarter, compared to $1,330 per tonne the previous quarter, an increase of nearly by 15%.

Prices for MOP, which had been imported into India under contract until November 2021 at around $280 per ton, have risen due to the dispute. The price has now risen to almost $500 per ton (a rise of 78.57%).

Ammonia prices, which were quoted at around $900 per ton before the conflict, have soared to nearly $1,050 to $1,100 per ton (for those from the Middle East). Since 1995, this has been the highest price ever quoted for ammonia. Sulfur prices, which closely mirror global Brent crude, were around $300 per tonne before the dispute and are now around $450-500 per tonne (an increase of more than 50%).


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