CURRENT AFFAIRS
CURRENT AFFAIRS
Description
Recent export limitations imposed by China have created significant upheaval in the global fertiliser market, particularly affecting the supply of di-ammonium phosphate (DAP) a key fertiliser essential for crop growth. The restrictions are intended to meet domestic agricultural demand and support phosphate use in electric vehicle battery manufacturing, causing ripple effects in countries heavily reliant on imports, like India.
India DAP Supply Under Pressure
India is currently grappling with a notable shortage of DAP as it heads into the kharif planting season. Opening stocks have dropped to just 12.4 lakh tonnes, lower than usual. China's DAP exports to India have seen a dramatic drop from 22.9 lakh tonnes in 2023–24 to 8.4 lakh tonnes in 2024–25. In 2025, there have been no recorded shipments from China, significantly reducing India’s import volumes.
Rising Costs In Global Market
The tightening supply has pushed up international DAP prices. Recent contracts from Jordan are priced at $781.5 per tonne, a significant jump from last year’s $515–525 range. Saudi Arabia is offering prices above $810 per tonne. In addition, the cost of phosphoric acid, a key ingredient in DAP production, has also surged contributing to higher production and retail costs.
Changing Fertiliser Demand Patterns
India’s DAP sales have declined, dropping from 108.1 lakh tonnes in 2023–24 to 92.8 lakh tonnes in 2024–25. Experts suggest that the shift could lead to the adoption of more balanced fertilisation methods, as not all crops require the high phosphorus content that DAP offers.
Rise Of Alternatives Like NPKS And APS
As DAP availability shrinks, farmers are turning to alternative fertilisers. Sales of NPKS complexes which offer a mix of nitrogen, phosphorus, potassium, and sulfur have risen 28.4%, from 110.7 lakh tonnes in 2023–24 to 142.1 lakh tonnes in 2024–25. Ammonium phosphate sulphate (APS) is gaining popularity due to its balanced nutrient profile, reflecting a shift in fertiliser preferences among Indian farmers.
Impact on Farmers And Pricing Concerns
Although the government has set a maximum retail price for DAP, market shortages often lead to higher actual costs for farmers. With reduced availability, sales of other fertilisers like single super phosphate and NPKS blends have grown. Farmers are adapting by modifying application methods, which may improve nutrient efficiency and reduce input waste over time.
Strategic Policy And Domestic Production
India’s dependence on imported DAP highlights the need for long-term policy reforms and investment in domestic fertiliser production. Reducing DAP usage where possible and encouraging alternative fertilisers could help conserve foreign exchange and promote self-sufficiency in the agriculture sector. The current scenario serves as a wake-up call for building a resilient fertiliser supply chain.
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