India saw a significant increase in fertilizer import from Russia in H1 of the current FY
According to industry sources, Russian fertilizer imports grew more than eightfold to $1.6 billion in the first half of the current fiscal year, up from approximately $185 million the previous year.
However, with prices falling in recent days, experts predict that the second half of the year would see some drops even if volume remains unchanged.
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Fertilizer imports from Russia totaled 2.15 million tonnes (mt) from April to September 2022-23, up from 0.46 mt the previous year, according to industry sources. The total import of fertilizers from all nations climbed by 11.6% to 8.73 mt in this period, up from 7.82 mt previously.
Complex fertilizer (NPKS) increased by 122% to 1.53 mt, whereas diammonium phosphate (DAP) increased by 43% to 3.33 mt. However, urea imports fell 25% to 2.99 mt, according to official figures.
While the average import price of urea in October was $665 per tonne FOB (Free on board), the pricing dropped to $578 per tonne in the most recent tender, according to a senior Fertiliser Ministry official. According to him, the average imported price of DAP fell to $722 per tonne in October from $758 per tonne in September as the world market cooled following Indian companies entering into direct contracts with global companies in supplier countries.
He also stated that the government is optimistic about reaching urea self-sufficiency because installed capacity has already climbed to 28.3 mt, while yearly demand is 35 mt. ‘With 44 crore bottles of nano-urea produced by 2025, which is comparable to 20 mt of standard urea, there would be a surplus, which might then be considered for export,’ he said.
There have been complaints of fertilizer shortages from a number of locations, despite the government’s assertion that supply exceeds demand at the macro level. The pro rata requirement of urea up to November 16 was 57.40 lakh tonnes, according to the fertilizer ministry (lt).
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In contrast, the government ensured the availability of 92.54 lt. It stated that urea sales totaled 38.43 litres. In the instance of DAP, the Ministry stated that the pro rata requirement up to November 16 was 26.98 lt, with 36.90 lt made available.
However, official data for October revealed that urea availability was 30.77 lt against a monthly demand of 35.65 lt, and DAP availability was 18.39 lt against a supply of 15.06 lt.