Fertilizer prices on fire due to West Asia crisis, shortage crisis may deepen in Kharif season

New Delhi. The war that started in one part of the world has now reached the fields of India. The direct impact of the ongoing tension in West Asia (Middle East) and the increasing conflict between America and Iran is now visible on Indian farmers and the agricultural sector. The international surge in fertilizer prices just before the start of the Kharif season has increased the concerns of both the government and farmers. India now has to pay more for DAP and urea than before.

A huge jump of 30% in DAP prices

The prices of fertilizers are skyrocketing in the global market. According to Rural Voice report, Indian fertilizer companies have signed import deals for around 15 lakh tonnes of DAP for the Kharif season. The surprising thing is that the price of DAP which was available at 720 to 730 dollars per tonne in February, has now increased to 920 to 930 dollars per tonne. That means direct import cost has increased by 30 percent. The falling value of the rupee against the dollar has further increased this burden.

Urea prices ‘doubled’, interruption in supply from Qatar

The situation of urea, which is most commonly used in agriculture, is even more serious. Urea prices have almost doubled amid the shadow of Iran war. India has signed deals for 25 lakh tonnes of urea at the rate of 935 to 959 dollars per tonne, whereas before the war the same rate was only around 435 dollars per tonne.

Not only this, due to interruption in LNG supply from Gulf countries, production in India’s domestic fertilizer factories has also been affected. India’s main LNG supplier is Qatar, and the direct impact of reduced supply from there is visible on the production figures.

Supply chain from Morocco and China broken, production fell

The breakdown of the international supply chain is also a major reason behind the worsening fertilizer crisis. China has currently banned the export of DAP. At the same time, there is a huge shortage of sulfur in Morocco, due to which the production of DAP has come to a standstill there. This has also affected India’s total fertilizer production. According to the data, India’s total fertilizer production has declined to 76.78 lakh tonnes between March 1 and May 10, which was 92.01 lakh tonnes in the same period last year.

Increased restlessness among farmers before paddy transplantation

At present sugarcane farmers need urea, but the real challenge will begin in the next one month. With the arrival of monsoon, when paddy planting will begin across the country, the demand for urea and DAP will be at its peak. Farmers fear that if the international situation does not improve, they may have to face serious shortage of fertilizers and black marketing.

Recently, Prime Minister Narendra Modi had also appealed to the farmers to reduce their dependence on chemical fertilizers and adopt natural farming, which is now being linked to this crisis. Now it is considered almost certain that the additional financial burden of fertilizer subsidy will increase on the government.