Indian Fertilizer Firms Plans to Import Phosphoric Acid at $600 Per Ton
New
Delhi: Owing
to fall in the prices of Di-ammonia phosphate (DAP) fertilizers globally, many Indian
fertilizer manufacturing companies are looking forward to import phosphoric
acid at USD600 per ton in order to produce NPK and DAP fertilizers. The prices
of DAP has declined across the world from USD400 per ton to USD350 per ton.
After urea, DAP is the 2nd most commonly used fertilizer in India. The
country's yearly requirement of phosphoric acid is ~26-27 lakh per ton, which
is most commonly used for producing DAP (Di-ammonia phosphate). Companies such
as: Zuari, IFFCO, Cormandel and
GSFC are the major producers of fertilizers in India and also the biggest importers
of phosphoric acid. These companies import chemicals majorly from Jordan, Morocco
and Tunisia. It is expected that Indian companies would negotiate on for import
of phosphoric acid in the range of USD600-610 per ton.
TechSci Research depicts that
import of phosphoric acid at low prices would prove profitable for the
fertilizer companies in India. This would increase their profit margins. Owing
to drop in the prices of phosphoric acid prices, the Indian fertilizer
manufacturing companies are in a mood to import phosphoric acid rather than
manufacturing it in India, as phosphoric acid is the chief feedstock for DAP.
According to TechSci Research report “Global
Water Soluble Fertilizers Market By
Type, By Composition, By Grade, By Structure, By Application, By Crop, By
Region, By Sales Channel, By Company Forecast & Opportunities, 2011 -
2021”, the global water soluble fertilizers market is projected to grow at a
CAGR of over 5% during 2016-2021, on account of rising population, growing
demand for food grains, and rising concerns related to depleting ground water
resources. Water soluble fertilizers are also being extensively used in order
to increase yield, as they are easy to apply and require less amount of
fertilizers and water usage. Water soluble fertilizers dissolve faster, have a
higher utilization rate and are absorbed quickly as compared to conventional
chemical fertilizers.