India Imports 9.74 Lakh Tonnes of DAP to Meet Agricultural Demand

India imported 9.74 lakh tonnes of di-ammonium phosphate (DAP) fertiliser from April to June 2025 to address domestic agricultural needs, according to government data. The imports, primarily from China, Saudi Arabia, and Morocco, reflect the country’s reliance on foreign supplies to support its farming sector during the Kharif season. This article examines the reasons behind the import surge, its implications for Indian agriculture, and the challenges of achieving self-sufficiency in fertiliser production.

The agriculture sector in India depends heavily on fertilisers like DAP to boost crop yields, particularly for staple crops such as rice and wheat. The 9.74 lakh tonnes imported in the first quarter of the 2025-26 financial year highlight the gap between domestic production and demand. China supplied 4.07 lakh tonnes, followed by Saudi Arabia with 2.7 lakh tonnes and Morocco with 1.65 lakh tonnes. Other countries, including Russia, Jordan, and Egypt, also contributed to the supply. The total import value reached $563 million, underscoring the economic significance of these transactions. The Kharif season, which runs from June to October, requires substantial fertiliser inputs, and DAP is critical due to its high nutrient content, providing both nitrogen and phosphorus essential for plant growth.

Domestic production of DAP in India faces constraints due to limited raw material availability and reliance on imported phosphoric acid and ammonia. The country produces around 40-50 lakh tonnes of DAP annually, but demand often exceeds 100 lakh tonnes, necessitating imports. The government has implemented measures like the Nutrient Based Subsidy (NBS) scheme to make fertilisers affordable for farmers while encouraging domestic production. However, global supply chain disruptions and fluctuating raw material prices have made self-reliance challenging. For instance, geopolitical tensions and export restrictions in key supplier countries can disrupt DAP availability, impacting planting schedules and crop output.

The reliance on imports raises concerns about cost and supply stability. High global fertiliser prices, driven by energy costs and supply chain issues, increase the financial burden on the government and farmers. In 2025, DAP prices ranged between $550 and $600 per tonne, adding pressure to the agricultural budget. The government has responded by negotiating long-term supply agreements with countries like Morocco and exploring joint ventures for domestic production. For example, plans are underway to establish new DAP manufacturing units in India, though these projects require significant investment and time to become operational.

Environmental concerns also play a role in the fertiliser debate. Overuse of chemical fertilisers like DAP can lead to soil degradation and water pollution, prompting calls for sustainable alternatives. The government is promoting organic farming and bio-fertilisers, but these options are not yet scalable enough to replace DAP entirely. Farmers, particularly in states like Punjab and Haryana, rely on DAP for high-yield crops, making a rapid shift to alternatives difficult. Balancing productivity with environmental sustainability remains a key challenge for policymakers.

Efforts to reduce import dependency include increasing domestic production capacity and diversifying supply sources. The government is investing in fertiliser plants and encouraging private sector participation through incentives. Additionally, research into alternative fertilisers and precision agriculture techniques aims to optimise DAP usage, reducing waste and environmental impact. However, these initiatives will take years to fully address the import gap, meaning India will likely continue relying on foreign DAP supplies in the near term.

The import of 9.74 lakh tonnes of DAP in April-June 2025 highlights India’s ongoing challenge to meet agricultural demand while striving for self-sufficiency. While government initiatives and investments aim to bolster domestic production, the reliance on imports from countries like China and Saudi Arabia underscores the complexities of global supply chains and resource constraints. Moving forward, a combination of increased production, sustainable practices, and strategic trade agreements will be essential to ensure food security and support India’s farmers.

Source: Outlook Business