The ongoing geopolitical tensions, particularly the Israel-Hamas conflict, have disrupted global trade routes, notably affecting the supply of di-ammonium phosphate (DAP) fertiliser in India. As the Rabi season approaches, farmers in Haryana are experiencing acute shortages, leading to protests and long queues at distribution centres. This situation puts stress on the interconnectedness of global supply chains and how distant conflicts can have immediate local repercussions.
About DAP Fertiliser
Di-ammonium phosphate (DAP) is a key fertiliser for Indian agriculture, particularly in northern states like Haryana, Punjab, and Uttar Pradesh. It is rich in phosphorus, essential for root development and overall crop health. Additionally, DAP provides nitrogen and sulphur, vital for the initial growth stages of crops such as wheat and mustard. India consumes approximately 10 million tonnes of DAP annually, with an important portion sourced from imports.
Global Supply Chain Disruptions
The Israel-Hamas war has exacerbated an already precarious global fertiliser supply chain, which was previously strained by the Russia-Ukraine conflict. The Red Sea route, crucial for transporting DAP, has been heavily impacted, forcing ships to take longer, more costly routes around Africa. This increased distance not only delays deliveries but also raises prices, contributing to the current shortage in India. Interestingly, the Red Sea is a critical maritime corridor, accounting for about 30% of global trade. The conflict’s impact on this route illustrates how regional disputes can ripple through global economies, affecting food security in far-off nations like India.
Impact on Indian Farmers
Farmers in Haryana have reported difficulties in accessing DAP, despite government assurances. The situation has led to panic buying, further straining the supply. As a response, the Haryana government has attempted to allocate alternative fertilisers like NPK (nitrogen, phosphorus, potassium) to mitigate the crisis. However, the effectiveness of these substitutes remains limited, as DAP is specifically tailored for the nutrient needs of many crops. The price of DAP has surged, increasing from $589 per metric tonne in September 2023 to $632 in September 2024. Despite the government’s price control measures, farmers are feeling the pinch of rising costs and limited availability.
Government Response and Future Outlook
In response to the crisis, the Government of India has been working to increase DAP availability and has promised allocations for the upcoming months. However, the effectiveness of these measures is yet to be seen, as farmers continue to express concerns over accessibility. The current scenario marks the need for India to diversify its fertiliser sourcing strategies and invest in domestic production capabilities to reduce dependency on imports. Additionally, enhancing logistical frameworks to ensure smoother supply chain operations during geopolitical crises is crucial.
Historical Context of Fertiliser Supply Issues
The issues surrounding fertiliser supply in India are not new. Previous conflicts, such as the Russia-Ukraine war, have similarly disrupted supplies and led to price hikes. Historically, India has relied heavily on imports from countries like Russia, Morocco, and Saudi Arabia, making it vulnerable to global political dynamics. In light of these challenges, understanding the historical context of fertiliser supply and the implications of global conflicts is essential for addressing the current crisis effectively.
Questions for UPSC:
- Discuss the significance of DAP fertiliser in Indian agriculture and the impact of its shortage on food security.
- Analyse the effects of geopolitical conflicts on global supply chains, using the Israel-Hamas war as a case study.
- Evaluate the government’s response to the fertiliser crisis in Haryana and suggest measures for improvement.
- Examine the historical trends of fertiliser supply in India and their implications for current agricultural practices.
- What strategies can India adopt to reduce its dependency on imported fertilisers?
