In a stern message to global fertilizer suppliers, India’s Chemicals and Fertilisers Minister Mansukh Mandaviya cautioned against price cartelization. Speaking at the Fertiliser Association of India’s annual seminar, Mandaviya emphasized India’s pivotal role in ensuring both its food security and that of the world.
Mandaviya highlighted that during the Russia-Ukraine war, global suppliers took advantage of the crisis and raised prices of phosphatic and phosphoric acid. Mandaviya asserted, urging global suppliers to avoid engaging in price cartelization at a time of crisis.
India, a significant importer of urea, DAP, and other fertilizers, has taken steps towards self-sufficiency, developing alternative fertilizers such as nano liquid urea and nano liquid DAP. Addressing global companies, Mandaviya emphasized the need for long-term cooperation and discouraged short-term profiteering.
The global prices of DAP have risen to USD 595 per tonne from USD 440 per tonne in July this year. This price increase is making it difficult for fertiliser companies to maintain profitability, and they may need either higher MRP or higher support from the government. Currently, fertiliser companies are selling DAP at Rs 1,350 per bag of 50 kilograms. FAI Chairman N Suresh Krishnan pointed out the need for higher government subsidies or retail prices to address the viability challenge if global prices persist at their current levels. The FAI also advocated for urea to be included in the Nutrient-based Subsidy (NBS) scheme to address pricing disparities.
Dr Mandaviya said that under the PM PRANAM initiative, a mass movement has started to save the health of Mother Earth by promoting sustainable and balanced use of fertilizers, adopting alternate fertilisers, promoting organic farming and implementing resource conservation technologies. Dr Mandaviya encouraged Indian industries to scale up and develop smart nutrients like slow-release, coated and liquid fertilisers which can improve nutrient use efficiency.
