Due to the delay in finalising the deal with exporters, India is likely to end up paying more for the imported di-ammonium phosphate (DAP). This will not only cost the exchequer dear but will also hit the ensuing kharif season, particularly in the northern region of the country.
India, which was projected to import nearly 3 million tonne of DAP due to better monsoon across the country, was now expected to get around half the quantity due to increasing competition and scarcity in the major producing nations like the US, said sources. ?If India needs to import the required quantity of 3 million tonne, it will have to pay at least Rs 1,500 to Rs 2,000 more per tonne as against the normal import cost of Rs 12,000 to Rs 13,000 a tonne,? industry sources told the FE.
?It is believed that the Centre took lot of time in finalising the exact quantity of DAP imports. Even if the government decides now, it takes at least 35 to 40 days for an imported quantity to arrive. Given the short supply of shipping containers and scarcity of the commodity in the major supplying markets like the US, the delay will hit the ensuing kharif season badly,? sources said.
Plaugued with financial, technical and operational problems, companies such as SPIC, Madras Fertilisers, FACT, Mangalore Chemicals, Oswal?s plant in Paradeep (now with IFFCO) were expected to produce much less than that of original production capacity, sources added.
?Phosphoric acid, considered to be the major raw material, is in short supply world over. No country is producing surplus quantity. The government should have an advance planning on the indigenous demand and supply gap, expected rainfall, domestic production, shipping arrangements etc. to arrive at the exact requirement of imported quantity of DAP. However, this time the government took a lot of time. With the kharif season approaching fast, it is difficult for the government to import the required quantity unless it is willing to pay a higher cost,? the sources maintained.
An official of Fertiliser Association of India told FE, ?It is a very rare phenomenon. Definitely there is an apprehension over the scenario,? the official added.
