IPL finalizes 1.346mt DAP purchase from 14 global suppliers at $930–935/t CFR

India’s largest state-owned fertilizer procurement company, India Potash Limited (IPL), has issued letters of intent to 14 global suppliers covering 1.3465 million tonnes of diammonium phosphate (DAP), securing the country’s near-term phosphate supply at $930–935 per tonne cost and freight (CFR).

The tender marks one of the largest single DAP procurement exercises India has conducted in recent years, spanning suppliers across Saudi Arabia, Morocco, Egypt, Russia, the United States, Jordan, and South Korea — a diversified sourcing strategy that reflects continued difficulty accessing Gulf-origin phosphate following the outbreak of the Strait of Hormuz conflict in late February.

East Coast Allocations

East coast allotments included volumes from Indagro (40,000t, U.S. origin), Ameropa (15,000t, Korean origin), Samsung (50,000t), Sun International (40,000t, U.S.), Ma’aden (60,000t, Saudi Arabia), Hexagon (50,000t), Fertistream (50,000t, Russia), Agricommodities (245,000t), and Aditya Birla (31,500t, Egypt).

West Coast Allocations

West coast allocations included additional volumes from Indagro, Ameropa (Morocco), Agrifields (Jordan), VB Venture, Sun International, Ma’aden, Quest Group (Russia), Agricommodities, Oasis (Russia), and Midgulf.

Separately, IPL is in discussions with Morocco’s OCP Group for triple superphosphate (TSP), with IPL having entered a counterbid of $710 per tonne cfr versus OCP’s offer — negotiations that remain ongoing.

The procurement scale reflects India’s substantial seasonal phosphate demand ahead of the kharif (summer) planting season, which begins in earnest in the coming weeks. India is the world’s largest importer of DAP, and ensuring adequate stocks at acceptable prices has become a priority for the Ministry of Chemicals and Fertilizers, which subsidizes the product for farmers.

Source: Argus Media