India extends critical DAP subsidy support through Rabi season as import costs stay above $900/t

The Indian government will continue to support DAP importers and domestic producers beyond the standard nutrient-based subsidy (NBS) through the end of the October–March rabi season, according to a document reviewed by Argus Media.

Under the India DAP subsidy extension, the government will pay importers and producers 3,500 rupees (approximately $41) per metric ton to cover costs including port handling, bagging, marketing, transport, and dealer margins. It will also compensate importers for any losses incurred from upward or downward trends in international DAP prices during the rabi window.

The support is necessary because Indian importers face substantial losses at current global prices. The maximum retail price (MRP) and NBS framework mean that any DAP purchased above roughly $510 per metric ton CFR generates a loss for the importer. Recent deals have priced in the mid-$910s to high-$920s per metric ton CFR, nearly double that breakeven threshold.

India is the world’s largest DAP importer, and maintaining an affordable phosphate supply is a food security priority ahead of the rabi crop, which accounts for roughly half of the country’s annual grain output. The India DAP subsidy extension signals that New Delhi expects elevated phosphate costs to persist into early 2027.

Source: Argus Media