India has imported 8.47 lakh tonnes of di-ammonium phosphate (DAP) fertiliser from China up to February in the current fiscal year, according to government data.
These imports represent 19.17% of the nation's total DAP imports, which stand at 44.19 lakh tonnes during this period. In the previous fiscal year, China's share was significantly higher, contributing 22.28 lakh tonnes, or around 40%, of India's overall DAP imports of 55.67 lakh tonnes.
DAP is the second most widely used fertiliser in India after urea, and the country relies heavily on imports to meet its demand.
Besides China, India sources DAP from Russia, Saudi Arabia, Morocco, and Jordan, importing both finished fertiliser and raw materials like rock phosphate and intermediate chemicals necessary for its production.
Despite challenges, domestic availability of DAP fertilisers has surpassed the required quantity for the ongoing rabi season.
The estimated demand for the season was 52 lakh tonnes, while 48 lakh tonnes have already been sold. As of March 11, India maintained a closing stock of 9.43 lakh tonnes of DAP, indicating sufficient reserves to address any immediate requirements.
However, the domestic production of DAP and other complex fertilisers faces various hurdles. These include marketing limitations, high inventories of finished products, and insufficient manpower.
Additionally, there are challenges such as maintenance needs, raw material shortages, storage issues, increased input costs, and disruptions caused by natural disasters like floods.
India's dependence on DAP imports is a reflection of the nation's agricultural needs and the limitations of its domestic production capabilities.
The decline in China's share of India's imports this fiscal year could be due to geopolitical factors, trade disruptions, or increased sourcing from alternative suppliers.
Nevertheless, the Indian government has managed to maintain adequate stocks to support agricultural activities during the rabi season.
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