Domestic DAP makers take a lesser hit than importers amid price surge

Price of raw materials used by local players has not spiked

Even as the price of imported finished Di-Ammonia Phosphate (DAP) is shooting through the roof due to China’s export restriction and supply disruption, domestic manufactures of DAP are likely to take a lesser hit as the price of raw materials that goes into making the crucial plant nutrient has not risen by same proportion. 

This has also reignited calls for promoting domestic value-addition than encouraging imports which would also boost capacity utilisation. 

India imports more than half of its annual DAP consumption. 

Import prices for July and August deliveries have soared to over $800 per tonne, close to the historic