Urea prices, which are fixed by the government, remained steady at Rs 5,360 per tonne.
“Domestic prices of Diammonium phosphate (DAP) and nitrogen, phosphorous and potash (NPK) have seen a drop as raw material prices in the global market fell,” said Rakesh Kapur, joint MD at Indian Farmers Fertiliser Cooperative Ltd (Iffco). “This is beneficial for Indian farmers who are going for planting of rice, cotton, soya bean, urad and other crops this kharif season.”
Ammonia prices fell $30 a tonne to $270 a tonne, compared to a year ago, Also, the current retail price of DAP was 20% less at Rs 22,500 per tonne than the 2019 kharif season prices, said Kapur. Further, in the recently signed contracts in April-May, the Muriate of Potash (MOP) prices have fallen by $50 a tonne, he said.
Indian Potash Ltd has reduced the price of MOP by 7.69% to Rs 17,500 per tonne in May compared to the previous month, said an industry executive.
The lockdown did not hit fertiliser output and supply, said K Ravichandran, group head-corporate ratings at ICRA. “Panic buying by farmers and low prices had led to increased sales of fertilisers this season. This will help in agriculture production,” he said.
Total fertiliser sale in April-May was 6.19 million tonne, compared to 3.39 million tonne a year ago, said Ravichandran.
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