India: DAP Imports Surge by 59% Yet Falls Short
Surge in DAP Imports Fails to Meet Demand
In October 2024, India’s imports of Di-ammonium phosphate (DAP), a critical fertilizer for Rabi crops like wheat, mustard, and chana, increased by 58.6%, reaching 817,000 tonnes compared to 515,000 tonnes in the previous year. However, the supply has fallen short of the estimated monthly demand of 1.869 million tonnes, leaving farmers in key agricultural states scrambling for alternatives.Supply Shortages Impact Sowing Progress
Despite higher imports, DAP sales fell to 1.148 million tonnes last month, down from 1.364 million tonnes in October 2023. This gap is causing delays in the sowing of crops such as wheat, particularly in major producing regions like Punjab, Haryana, western Uttar Pradesh, and Rajasthan.Government Response and Fertilizer Policies
The Union Agriculture Ministry has addressed concerns about DAP shortages, particularly in Punjab, labeling reports as "misleading." According to the ministry, DAP prices remain steady at $0,32 per kg despite challenges tied to the ongoing Red Sea crisis.Additionally, the ministry is considering whether to continue publishing weekly sowing updates, as discrepancies between manually collected data and satellite-based forecasts have raised questions about reporting accuracy.
Regional Updates: Varied Harvest Progress
As of November 17, Rabi crop harvesting progress varies across states:- Punjab and Haryana: Over 81% completed
- Uttar Pradesh: 70-72% completed
- Madhya Pradesh: 50% completed
Conclusion: Navigating the Fertilizer Gap
The October surge in DAP imports was not enough to close the gap between supply and demand, leaving farmers and policymakers facing critical decisions. While some alternatives have helped mitigate immediate impacts, the agricultural sector remains concerned about long-term effects on crop yields and farmer incomes.Click here to reach our trading platfrom CMBroker
