Fertiliser imports upward push 4% in January

Import of fertilisers in January this yr rose by way of 3.9% to one.9 million tonne (MT) in comparison to the year-ago duration, consistent with the legit knowledge. The imports had been 1.8 MT all through January 2022.

In step with the information, 1.06 MT (urea), 0.56 MT (Di-ammonium Phosphate – DAP), 0.1 MT ( Muriate of Potash – MoP) and zero.16 mt (complexes) had been imported in January, 2023.

The home fertiliser manufacturing all through January this yr additionally rose to a few.9 MT in comparison with 3.2 MT within the year-ago duration.

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Greater than part of the rustic’s DAP necessities are imported, and the primary assets are West Asia and Jordan whilst India imports about 25% of its annual intake of urea.

Imports account for a 3rd of home soil vitamins intake of round 60 million tonne yearly.

In the meantime, international urea costs (freight on board) declined by way of greater than 44% to $ 500/tonne in January this yr from $ 897/tonne within the year-ago duration. In a similar way, international costs of DAP fell by way of 26% to $ 679/tonne, phosphoric acid by way of 12% to $ 1,175/tonne.

Then again, the worldwide value of MoP rose by way of about 32% to $590/tonne in January on yr.

Fertiliser minister Mansukh Mandaviya in December closing yr had mentioned that with the broader use of nano-urea and nano-DAP, the fertiliser subsidy incurred by way of the federal government may well be decreased considerably over the following couple of years. As according to the revised estimates, the fertiliser subsidy for the present fiscal is estimated at Rs 2.25 trillion, which is a rise of 39% than Rs 1.62 trillion in 2021-22. It’s principally attributed to spike international costs of fertilisers and as smartly LNG, a key factor in production of urea.

Ranking company Icra expects the fertiliser subsidy at round Rs 2 trillion in 2023-24.

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In case of urea, farmers pay a set value Rs 242 according to bag (45 kg) towards the price of manufacturing of round Rs 2,650 according to bag. The steadiness is supplied by way of the federal government as a subsidy to fertiliser gadgets.

The retail costs of phosphatic and potassic (P&Ok) fertiliser, together with DAP had been ‘decontrolled’ in 2020 with the advent of a ‘fixed-subsidy’ regime as a part of Nutrient Primarily based Subsidy mechanism introduced by way of the federal government two times in a yr.