diammonium phosphate

India is shifting to collective procurement for phosphate and potash fertilizers amid Strait of Hormuz supply disruptions, with IPL’s first joint DAP tender drawing 2.3 million tonnes of offers — nearly double the volume sought.

The importer has requested suppliers to match counterbid levels of $930-935 per ton cfr after receiving over 2.3 million tons in diammonium phosphate offers.

Did you know that DAP (diammonium phosphate) – long a staple of the fertilizer world – is now stepping onto the stage of the energy transition?

Let’s take a look at what has happened to affordability over the past 45 days, as my last reference date was April 11, 2025.

The project, costing $10 million and expected to be completed within a year, aims to increase domestic production capacity from 30,000 to 50,000 metric tonnes using Korean technology.

The manufacturers reportedly charge extra for the fertilizers and compel the dealers to pick them up from a remote location, increasing costs that are then passed on to farmers. As a result, farmers end up paying significantly more for fertilizers like diammonium phosphate (DAP) and urea.

Recent S&P Global reports on phosphate prices contested by IPL for inaccuracy.

The country is exploring strategic moves to ensure the availability of agricultural inputs.

Industry experts fear trade rerouting and new inflationary pressures, particularly impacting DAP fertilizer manufacturing.

Eight brands of complex water-soluble fertilizers, ammophos and diammonium phosphate were awarded.

In the 2022-2023 period, fertilizer exports from Russia exceeded $3 billion.

Investments to the project may reach $355 million.

The previously suspended agreement was revived.

Other suppliers are only trying to catch up.

Duties won’t be abolished.