The lower import of key fertilisers due to global price rise of the crop nutrients is unlikely to affect yield of crops this year. However, reduction in import of potash may affect the “shining” quality of domestically available fruits and vegetables.
“There was a need to take a decision on use of chemical fertiliser and the government has decided to import as per ‘actual requirement’ as global prices hit the roof,” an agriculture scientist said requesting anonymity. “To be sure, there will be no impact on yield this year even if there is reduction in application of urea, diammonium phosphate (DAP) and Muriate of Potash (MOP),” he said adding the soil has already excess of these nutrients due to imbalanced application.
The official target for 2021-22 foodgrain output is 307.31 million tonnes (mt) — 155.88 mt from rabi season and 151.43 mt from kharif. The country’s foodgrain output jumped to a record 308.65 mt and that of horticulture production to 331.05 mt during 2020-21 crop year (July-June).
Incidentally, there were record sales of fertilisers at 67 mt and also an all-time high import of about 20 mt in 2020-21.
Asked if the lower application will affect exportable fruits and vegetables, he said the exporters are aware about the implications (of overuse) and they will make sure of judicious use from the current availability of potash.
Decline in imports
There has been a major cut in import of potash (K) fertiliser as the country is entirely dependent on overseas supply and the industry is not ready to bring in more quantity than what they can sell due to fixed subsidy, unlike in phosphorous (P) in which government support was increased twice this fiscal, industry sources said.
The import of potash was 17.4 lakh tonnes (lt) during April-December this fiscal against 42.3 lt in entire 2020-21 and is unlikely to increase much in January-March.
In case of DAP, the import was at 42.56 lt during April-January of FY22, the government said in parliament. Of this, about 2.46 lt were imported in January as companies are gearing up for the next kharif season and will start contracts based on subsidy policy. Finance Minister Nirmala Sitharaman has allocated ₹16,800 crore for import of P and K fertilisers during FY23 — more than double from ₹8,260 crore in BE of FY22, but lower than the revised estimate of current fiscal at ₹25,087.34 crore.
Higher prices
Prices of MoP were around $280/tonne (CIF) in India during June last year, but went up to $445 by September and further to about $600 in December. Urea prices, too, went up to $1,000/tonne in November last year from about $400 in April. DAP prices also moved to about $700/tonne in September from about $445 in June.
While potash is largely used in horticulture and plantation crops, urea and DAP are applied in all crops. The maximum retail price (MRP) of a 45-kg bag of urea is ₹242 and that of a 50-kg bag is ₹268, all prices exclusive of charges towards neem coating and taxes as applicable. The Centre has not changed the MRP of urea since 2012, when it was increased by ₹50/tonne to ₹5,360.
In October last year, the government had approved an additional fertiliser subsidy of ₹28,655 crore to insulate farmers from paying extra for DAP after global prices surged. Earlier in June also it had approved ₹14,775-crore additional subsidy on DAP. Though the government pays a fixed subsidy for P and K fertilisers leaving the companies to decide the selling price, it had to intervene this fiscal to keep the DAP price under check at ₹1,200 per bag (50 kg). However, no such announcement was made for MoP fertiliser.