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Anala Rajkot

Oct 23, 2024

In India DAP Sales Drop by 50% in September, Raising Concerns for Winter Crops

In India DAP Sales Drop by 50% in September, Raising Concerns for Winter Crops

DAP Sales Drop to 0.8 Million Tonnes

In India sales of Di-ammonium Phosphate (DAP), the key fertiliser used in winter crops like wheat, mustard, and gram, saw a sharp decline in September, dropping to just 0.776 million tonnes—a 51% decrease from the 1.57 million tonnes sold during the same period last year. This sudden fall in sales has raised concerns. Especially after it was flagged as a major issue during last week’s Rabi conference.

For comparison, September sales were 1.115 million tonnes in 2022, 0.596 million tonnes in 2021, 0.765 million tonnes in 2020, and 0.633 million tonnes in 2019, showing just how significant this year’s decline has been.

“Farmers usually buy DAP in September and October to get their fields ready for sowing,” explained agriculture expert A K Singh. “With the monsoon being favorable and its withdrawal delayed, good moisture levels should have created more demand for fertilisers as farmers expect a healthy winter crop.”

Farmers Raise Concerns Over DAP Shortage

Reports of farmers protesting due to shortages of DAP, particularly in Punjab and Madhya Pradesh, have added to the growing concerns. "There seems to be an issue with availability". Singh noted, adding, "This year’s wheat crop is crucial. And the government needs to ensure timely access to enough DAP to avoid any setbacks."

Singh also emphasized the importance of studying the shriveled wheat crops that have been seen in recent years. "We can’t keep relaxing procurement norms without addressing the root causes," he added.

Fertiliser Sales During Kharif Season 2024

According to the Crop Weather Watch report, total fertiliser sales during the Kharif season (April-September) reached 31.997 million tonnes (mt), which included:
  • 18.912 mt of urea
  • 4.612 mt of DAP
  • 0.927 mt of MOP
  • 7.546 mt of complex fertilisers (N, P, K nutrients)
The estimated demand for the season was 32.144 mt, consisting of:
  • 17.712 mt of urea
  • 5.987 mt of DAP
  • 1.026 mt of MOP
  • 7.419 mt of complex fertilisers
Singh pointed out that it’s unusual for DAP sales to fall short of projected demand. While other fertilisers like urea seem unaffected.

September Fertiliser Sales Snapshot

Official data shows that sales of urea were up by 3.1%, reaching 3.089 mt in September 2024 compared to 2.997 mt last year. However, sales of MOP (Muriate of Potash) dropped by 4.7%, falling to 0.225 mt from 0.2.36 mt, while complex fertilisers saw an 11.6% drop, with sales reaching 1.66 mt compared to 1.877 mt last year.

Government Sets Targets for Winter Crops

This year, the government has set an ambitious target for winter-grown foodgrains at 164.55 million tonnes (mt), including:
  • 115 mt of wheat
  • 13.65 mt of gram
  • 13.8 mt of mustard
The original targets were reported earlier this year, but revisions were made in July, specifically in maize production. The Kharif maize target was increased from 24.60 mt to 26 mt, while the Rabi maize target was revised from 11.45 mt to 12 mt.

Conclusion: Addressing the DAP Shortage

The sharp drop in DAP sales and the growing concerns from farmers. It suggest that the government needs to act quickly to address the availability issue. With the winter crop season approaching and wheat being a crucial crop, ensuring timely distribution of fertilisers like DAP is key to meeting production goals.





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