According to reports from PTI, the Soluble Fertilizer Association of India (SFAI) President Rajib Chakraborty revealed that input costs have surged 60-100% over the past year due to China's export curbs and disruptions linked to tensions in West Asia. As reported by PTI, monoammonium phosphate (MAP), which sold for around USD 1,000 per tonne over the last couple of years, is now trading at USD 1,500-1,600 per tonne. Chakraborty noted that an increase of USD 600 per tonne represents a significant cost burden for the industry. China's restrictions on exports of key products, coupled with the West Asia crisis, have disrupted shipments to India, forcing importers to explore alternatives such as Russia and the CIS region, with availability from these sources also remaining limited.
As reported by PTI, India typically imports about 4 lakh tonnes of soluble fertiliser annually, with total imports this fiscal estimated at 2-2.5 lakh tonnes, of which about 1 lakh tonne has been landed till June. According to Chakraborty, the immediate supply situation is not alarming due to stock carryover from last year when excess rainfall and flooding in key farming regions led to poor consumption. However, he cautioned that a sharp pick-up in demand this season could strain the next round of supplies, with bulk consumption happening between September and March. Despite the price rise, Chakraborty noted that "so far, I don't see much of a problem," but warned that domestic manufacturing of soluble fertiliser is minimal, leaving little scope to bridge the import shortfall from within the country.
According to PTI, Chakraborty identified the biggest risk to the sector as the possibility of a drop in consumption due to price rise. He stated that "The moment it becomes very expensive, farmers stop using it." The industry body noted that price control was not possible or within the industry's control. Chakraborty warned that high prices could push farmers towards cheaper substitutes, with many already turning to phosphatic alternatives such as SSP, which have a lower phosphorus content of 20-22% compared to MAP's 61% but cost significantly less. A shift back to conventional fertilisers like urea and DAP would also push up the government's subsidy bill, he pointed out.
As reported by PTI, patchy rainfall this season could support demand for water-soluble products since they use far less water than conventional fertigation. Chakraborty noted that crops such as cotton, which typically receive two soluble-fertiliser sprays a season, could see higher use if dry conditions persist. "If there is no rain, there will be yellow leaves. So, they will tend to use more," he said, adding that adoption of speciality fertilisers tends to rise during periods of agricultural stress. The southwest monsoon has covered the entire country, but the active spell has ended, and the IMD has warned that below-normal rainfall is likely from mid-July onward. Consignments have started arriving at Indian ports, and prices, currently believed to be at their peak, could ease once these supplies are distributed through the market.
