Russia overtakes other suppliers of DAP fertiliser in India amid sanctions
India has imported about 3.5 lakh tonnes of di-ammonium phosphate (DAP) fertiliser from Russia, which would be arriving during the April to July period. This is below the rates paid by other countries for DAP, mainly from China, Saudi Arabia, Morocco and Jordan. Bangladesh’s Agriculture Ministry, earlier this month, awarded an annual tender for import of 8.12 lt at $1,020-1,030 per tonne. Pakistan hasn’t been able to contract of late even at $1,030 CFR, with the local currency’s depreciation against the dollar adding to the uncertainty. India contracting DAP from Russia’s PhosAgro at $920 per tonne CFR – which is also the price cap that the government has put on importers – is likely to put pressure on other suppliers, especially Morocco’s OCP Group, China’s YUC and Saudi Arabia’s Ma’aden and SABIC. The same is being done by sourcing more DAP (the country’s second most-consumed fertiliser) from Russia at a discount to international prices,” Total DAP import arrivals for April-July are projected at 9.5-9.8 lt. Out of that, roughly 3.5 lt will be supplied by PhosAgro, with Ma’aden and SABIC’s share at 2.8 lt, YUC’s at 1.27 lt and OCP’s at 1.03 lt. India, in 2021-22 (April-March), imported 58.60 lt of DAP valued at $4,007.50 million. The bulk of the 58.60 lt imported was accounted for by China (20.43 lt), Saudi Arabia (19.33 lt), Morocco (12.13 lt) and Jordan (2.46 lt). Importing from Russia has presented problems from sanctions, forcing “innovative methods” of making payments.