China wall, supply chain issues hurt fertilizer imports

Chinese supply curbs and global supply chain disruptions have dragged down the production and imports of key fertilizers, casting a cloud over India's crop yields and farmer incomes.

- Dhirendra Kumar

Production of di-ammonium phosphate (DAP) fell 7.3% in the April-October period while imports plunged nearly 30%, showed data from the Fertilizer Association of India (FAI), which represents fertilizer makers, importers and distributors. DAP is widely used in farming wheat, pulses and mustard, popular winter (rabi) crops.

"Due to disturbances in the global supply chain, we are not receiving enough raw materials required to manufacture fertilizers. Additionally, we are not getting sufficient raw materials from China, as the neighbouring country has stopped exporting key inputs, citing an uptick in its own domestic demand," FAI chairman N. Suresh Krishnan said.

The agriculture sector is India's largest employer, and poor yields resulting from insufficient nutrients could have an adverse impact on rural incomes and the wider economy.

While DAP production and imports have declined, other fertilizer types have shown mixed trends. Urea production slipped 1.3% till October, while NP/NPK production rose 10.9%, and single super phosphate (SSP) production rose 7.5%. Overall production offertilizers grew just 0.4% in October, contributing to a cumulative increase of 1.5% for the current fiscal year, the latest core sector data showed. Imports of urea fell 34.7%, NP/NPK 9.9%, and muriate of potash 4.5%.