Availability of fertilizers specially in DAP, is going to be very challenging for India as global fertilizer prices soar high due to high demand in US.
Indian government top priorities is always with farmers, hence India contracted all fertilizers at high import prices so that they could make availability of all the Fertilizers to the farmers before season specially rabi season but at what cost and price, that industry will witness in coming time. However, in May 2021, Indian government has taken fast decision by increasing 136.84% subsidy on DAP and other phosphatic Fertilizers and maintained DAP MRP at $16 USD (INR 1200) per 50 bag to the farmers, with increase of DAP subsidy of $186.67 USD (Rs.14000/- per ton).
Department of Fertilisers estimated around $ 2 billion USD (INR 14775 Crore) additional subsidy for revised NBS rates for P&K fertilizers for the year 2021-22 on 16th June 2021.
Indicative import prices of fertilizer in July in India seems to be very high due to high global prices. What will be the landed cost and price of fertilizers in the field and for farmers on these contracted prices?
The indicative import prices of fertilizer in India, are climbing high that clearly indicates, either subsidy or MRP of fertilizer will further increase as at existing DAP MRP, it is not viable for a company and it will lead to higher subsidy burden to India.
Below table indicate that at $ 628 CFR per ton DAP purchase price, prices at field / farmers level will be around $ 445.6 USD per ton ($22.28 USD / INR 1671 per 50 kg bag), after existing subsidy of $ 323.08 USD (INR 24231) per ton as against existing MRP of $ 320 USD per ton ($16 USD / INR 1200 per 50 kg bag).
Similarly, with indicative import price @ at $ 580 CFR per ton in India, NPK 10:26:26 landed prices at field / farmers level will be around $ 502.4 USD per ton ($25.12 USD / INR 1884 per 50 kg bag), after existing subsidy of $ 217.25 USD (INR 16294) per ton.
With indicative import price @ at $ 610 CFR per ton in India, NPK 12:32:16 landed prices at field / farmers level will be around $ 507.2 USD per ton ($25.36 USD / INR 1902 per 50 kg bag), after existing subsidy of $ 245 USD (INR 18377) per ton.
With indicative import price @ at $ 440 CFR per ton in India, NPK 20:20:0:13 landed prices at field / farmers level will be around $ 388.53 USD per ton ($19.43 USD / INR 1457 per 50 kg bag), after existing subsidy of $ 175 USD (INR 13131) per ton.
With indicative import price @ at $ 280 CFR per ton in India, MOP landed prices at field / farmers level will be around $ 306.67 USD per ton ($15.33 USD / INR 1150 per 50 kg bag), after existing subsidy of $ 80.93 USD (INR 6070) per ton.
