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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.

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