In recent news, farmers across various states of India, such as Rajasthan, Punjab, Haryana, and Karnataka, are grappling with a severe scarcity of fertilizers, particularly Di-ammonium Phosphate (DAP), on the brink of the Rabi season. This situation arises despite the government escalating the subsidy to 140% on DAP fertiliser.
Understanding Di-Ammonium Phosphate (DAP)
DAP ranks second in the list of most extensively used fertilisers in India after urea. It’s primarily deployed just before or at the inception of sowing, given its high phosphorus content, instrumental in stimulating root development. DAP, which has 46% P (phosphorus) and 18% Nitrogen, is the favorite Phosphorus source among farmers. This preference is akin to their inclination for urea, their most favored nitrogenous fertiliser, which comprises 46% N.
Reasons behind the Current Shortage
The current fertilizer crisis can be attributed to multiple factors. One major reason is the disruption in the global supply and logistic chain incited by the ongoing pandemic. This disruption has subsequently escalated fertiliser prices globally, which has resulted in India cutting down its imports, thereby leading to an even further depletion of fertiliser stocks domestically.
Rising raw material costs contribute to this problem too. As global prices of fertilizers and other input materials like phosphoric acid, ammonia, and sulphur continue to surge, imports become economically feasible only if companies can transfer these costs to the local farmers.
Another crucial catalyst is the fixed subsidies granted by the Centre to fertilizer companies. These companies believe that the provided subsidies are not sufficient. As a result, they have reduced the production of DAP, which has adversely affected the supplies.
Impact of the Fertilizer Shortage
The unavailability of DAP can jeopardize the sowing of Rabi crops in states heavily reliant on soil moisture and water reservoir availability. Furthermore, the nutrient’s inadequacy during the sowing season could potentially affect the production target, which is expected to be missed.
Mitigating the Crisis: The Way Forward
To alleviate this crisis, the government must ensure prompt transportation of the material from ports to consumption hubs. If farmers are reassured of sufficient stock in transit, panic buying would cease, and they wouldn’t mind postponing sowing by a week. Instead of DAP, farmers are also advised to use a mixture of urea-single super phosphate. By adopting these measures, the current fertilizer shortage can be significantly mitigated.
