India's government has confirmed it will continue subsidising diammonium phosphate (DAP) imports at 3,500 rupees per tonne through the upcoming Rabi cropping season, as global phosphate prices remain elevated above $900 per tonne on a landed-cost basis.
The support is designed to absorb the gap between international DAP prices and domestic affordability, protecting importers and fertiliser companies from further losses on phosphate purchases while ensuring farmers retain access to subsidised supply ahead of the winter planting cycle.
For international DAP and phosphate suppliers, the extension signals that Indian demand should remain firm through the season, since the subsidy removes much of the price risk that would otherwise curb import volumes. Sellers into India can expect continued buying interest even at current elevated price levels, though the scheme's cost to the Indian budget may eventually prompt renegotiation with suppliers or adjustments to subsidy rates.
Related on gidex.com: urea supply · DAP supply · the fertiliser desk
Original note by GIDEX Group based on reporting by Fertilizer Daily. Written up by the GIDEX market desk — see how these notes are made. Not investment advice.
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