February 10, 2025

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Higher prices of imported raw materials push up agri-nutrients’ cost

Hardening of raw materials costs in the worldwide industry has prompted fertilizer corporations to hike the costs for agri-vitamins and minerals in the domestic industry.

Asserting its selection to hike the costs of agri inputs including di-ammonium phosphate (DAP) and distinctive varieties of NPK (phosphatic fertilisers), Indian Farmers Fertilisers Cooperative Ltd (IFFCO) said that the costs of sophisticated fertilisers are decontrolled and joined to fluctuations in the costs of raw products in the international industry.

IFFCO can make DAP and other sophisticated fertilisers at the cooperative’s Kandla and Paradeep crops with merged ability of 43 lakh tonnes (lt) per annum. The cooperative earns nearly forty five per cent of the complete revenue from DAP fertilisers. It has about 26 per cent industry share in urea section, including the imported urea. IFFCO’s Kandla plant is dependent on imported phosphoric acid.

More than the previous a person year, raw materials costs have seen sharp soar in the worldwide industry. Potash costs have greater this year to $280 per tonne as in opposition to $230 last year, said PS Gahlaut, Running Director, Indian Potash Ltd (IPL). IPL experienced a short while ago signed an agreement with Belarus Potash Co for import of 8 lt potash at $280/tonne. IPL will take a call on boosting the retail costs on Monday, Gahlaut said.

Though Muriate of Potash (MoP) has greater by 21 per cent to $280 a tonne, the DAP is ruling all around $545-550. In the same way, phosphoric acid costs have also seen an enhance, forcing the fertiliser corporations to hike the retail costs. Except the Federal government boosts the nutrient dependent subsidy, the retail costs of these potassic and phosphatic vitamins and minerals will go up, an market supply said. For 2021-22, the Federal government is still to announce the nutrient dependent subsidy.

Imports may possibly arrive down

Gahlaut said the cost increase may possibly consequence in a decrease in potash imports by all around twenty per cent. India is completely import-dependent on potash and resources it from six international locations — Belarus, Canada, Russia, Israel, Jordan and Germany.

“The cost trend for international fertilisers about the previous handful of months have been moving up. Also, the availability condition has been tight as significantly as India is involved. There has been hardening of costs of all raw materials,” said Suresh Krishnan, MD, Paradeep Phosphates Ltd.

Farmers flay move

Meanwhile, farmers’ organisations demanded rapid withdrawal of the hike. Samyukt Kisan Morcha chief Darshan Pal said the enter expense of farming is increasing so considerably that it exceeds the costs of the crop.

The All-India Kisan Sabha said IFFCO notification came out just two months following it said that costs will not be greater as they aimed to cut down agricultural enter expense to farmers. “This has happened as the Federal government has promoted deregulation in the fertiliser sector and corporations are correcting farm-gate costs without even transferring the gain of fertiliser subsidies to farmers,” it said in a statement.