India Faces Fertiliser Crunch Amid China’s DAP Curbs
India faces a 30% dip in di-ammonium phosphate (DAP) imports after China’s July 2025 export curbs, jeopardising agricultural output. With 55% import reliance, the shortage may slash wheat and pulse yields by 15%. Efforts to secure supplies from Saudi Arabia and Morocco face shipping delays, while domestic production is limited by raw material constraints. Prices have spiked 10% since June, prompting distress among India’s 140 million farmers despite a ₹1.91 lakh crore fertiliser subsidy. The PM PRANAM scheme promotes organic alternatives, but long-term food security demands $2 billion in local DAP investments and rare earth access.
China’s export restrictions on di-ammonium phosphate (DAP) have triggered a fertiliser shortage in India, threatening agricultural output. India’s efforts to secure alternative supplies highlight the urgency of self-reliance in fertiliser production.
In July 2025, China imposed curbs on phosphate exports, citing domestic demand, reducing India’s DAP supply by 30%. India, consuming 10–11 million tonnes of DAP annually, relies on imports for 55% of its needs. A five-year deal with Saudi Arabia for 1 million tonnes yearly, alongside agreements with Morocco, mitigates the shortfall, but Red Sea shipping delays add 14–45 days to deliveries. Domestic production, at 5 million tonnes, is constrained by raw material shortages, with phosphoric acid imports costing $1 billion annually.
The shortage risks reducing wheat and pulse yields by 15%, critical for India’s 140 million farmers. The government’s ₹1.91 lakh crore fertiliser subsidy for FY25 aims to stabilise prices, but black marketing persists, echoing concerns raised by Minister Shivraj Singh Chouhan. Posts on X highlight farmer distress over DAP prices, up 10% since June. Critics argue that India’s 40% import reliance and limited testing labs (50% operational) hinder quality control.
Initiatives like the PM PRANAM scheme promote organic fertilisers, reducing chemical use by 10% in pilot areas. Scaling domestic DAP production requires $2 billion in investments and rare earth access, with China controlling 70% of global supply. Strengthening supply chains and local manufacturing is vital.
India’s fertiliser crunch underscores vulnerabilities in global trade. Long-term investments in domestic production and sustainable alternatives are essential for food security.
Source: Outlook Business
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