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Ukraine-Russia crisis: Indian fertiliser industry consider to source MoP, DAP from other countries

Ukraine-Russia crisis- Indian fertiliser industry considering to source MoP, DAP from other countries

Ukraine-Russia crisis: Indian fertiliser industry considering to source MoP, DAP from other countries

In light of the potential hurdles to future supplies from Russia and Belarus due to the crisis between Moscow and Ukraine, Indian fertiliser businesses are looking for other sources of Muriate of Potash (MoP) and di-ammonium phosphate (DAP).

‘We are attempting to obtain MoP and DAP from Jordan, Morocco, and Canada in order to meet the fertiliser need for the coming fiscal year. Right now, there is enough stock with enterprises to last until March, and the next necessity is for the period from April to September,’ Kishor Rungta, Fertilizer Association of India(Southern Region) explained.

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He stated that with a demand of 30 lakh tonnes, India’s potash requirement is completely satisfied by imports from Belarus and Russia. The nation also imports a minor amount from Gulf countries.

However, fertiliser manufacturers believe that sanctions will make it difficult to get potash on time. Furthermore, due to the shift in procurement from other nations, the import price for MoP, which is presently standing at $600 per tonne, might rise, he added.

In terms of phosphatic fertilisers, he stated that there is presently no scarcity, since enterprises are mostly sourcing them from Morocco and other nations. However, input prices for phosphatic fertilisers such as ammonia and phosphoric acid may rise, affecting domestic phosphatic fertiliser output.

Sanctions against Russia may also have an impact on NPK fertiliser supplies to India, as well as the availability of natural gas, LNG, and ammonia, resulting in lesser availability of fertiliser inputs and higher costs. Natural gas scarcity is also projected to raise manufacturing costs, he added.

Rungta, who also serves as the Chairman and Managing Director of FACT, stated that a comprehensive picture of punishments will emerge in the coming days. However, there may be a price increase and pressure on fertiliser availability not only in India, but around the world, affecting fertiliser and other raw material input supplies. He stated that the Indian government is making all efforts to guarantee enough fertiliser availability.

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When asked about the MoP need for FACT, Rungta stated, ‘it is quite modest in comparison to other fertiliser producing enterprises.’ FACT is now concentrating on establishing an NPK facility at a cost of 700 crore, and project construction is underway. In addition, we are stabilizing our caprolactam factory in order to make the country self-sufficient in this commodity.’

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