Government of India Slashes Prices of DAP and MOP Fertilizers
India: Well-established public
sector fertilizer manufacturers such as Rashtriya Chemicals and Fertilizers Limited (RCF) and
National Fertilizers Limited (NFL) along with many small players have decided
to lower down the prices of diammonium phosphate (DAP) by approximately USD37
per metric ton and muriate of potash (MOP) by around USD74 per metric ton. Due
to this, a 50-kg bag of MOP will be priced at around USD3.7 less, while DAP
price will be declined by approximately USD1.85 per 50-kg bag. According to Mr.
Ananth Kumar, the Minister of Chemicals and Fertilizers, the ministry has ordered
the department to check that Indian farmers are benefitted with the reduction
in the prices of MOP, DAP and NPK fertilizers. This is the first time in last
15 years that the ministry has taken a step towards lowering down the prices of
DAP, MOP and NPK fertilizers.
TechSci Research depicts that
the reduction in the prices of DAP,
MOP and NPK fertilizers
would aid in balanced use of these fertilizers by the farmers and enhance soil
fertility. Reduction in the prices is likely to impact the market of phosphoric acid
which is used in production of phosphate chemicals consumed for producing DAP fertilizer.
According to an
upcoming report by TechSci Research, “India Phosphoric Acid Market, By Grade (Fertilizer and Technical), By Application
(Fertilizers, Pharmaceutical, Food & Beverage etc.), By Region, Competition
Market Forecast & Opportunities, 2011-2021”, the India market for phosphoric acid is anticipated to increase on
account of mounting demand for phosphoric acid in fertilizer as well as
non-fertilizer industries of India coupled with rising Indian production and
export of SSP fertilizers to the international market.