Industry News

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. 

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