West Asia war: Specialty fertiliser imports 10-20% costlier, cos to step up production

New Delhi: Imported specialty fertiliser prices have risen 10-20% since the Iran war erupted, threatening supplies of key farm nutrients, pushing Indian companies to step up production ahead of the key kharif sowing season.

The industry is enhancing stocks and raw materials amid fears of a shortage of urea and di-ammonium phosphate (DAP) just ahead of the kharif season.


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"Companies in the specialty nutrient sector are cautiously building inventories and securing raw material supplies," said Rahul Mirchandani, president of Indian Micro Fertilizers Manufacturers Association.

The supply crisis caused by the escalating conflict has led to a noticeable rise in enquiries for alternate soil nutrients such as micronutrients and specialty fertilisers though farm level demand remains unchanged, he said.

The import disruptions are also impacting the availability and prices of certain speciality fertilisers and packaging materials, said Rajib Chakraborty, president of the Soluble Fertilizer Industry Association.

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Prices of imported speciality fertilisers such as mono-ammonium phosphate (MAP), mono-potassium phosphate (MKP), PON, SOP, calcium nitrate, and other water-soluble nutrients have climbed as much as 20%leading local producers to also boost production of these fertilisers.

"Farmers are becoming aware of this shift and are increasingly exploring more cost-effective NPK combinations," said Chakraborty, adding that in the past also, crises have triggered a psychological shift towards 'Made in India', and the current scenario may once again strengthen domestic manufacturing.

Dealers and distributors of these products are also exploring stocking them as a hedge against potential price volatility or supply disruptions in conventional fertilisers like urea and DAP.