Russian Companies Stop Offering Discounted Fertilizer to India, Increasing Import Costs
Russian companies have stopped offering discounted fertilizers, such as di-ammonium phosphate (DAP), to India due to tightening global supplies. This move could potentially increase India’s import costs and subsidy burden, as global prices continue to rise.
In the 2022/23 financial year, India’s fertilizer imports from Russia reached a record 4.35 million metric tons, as suppliers offered discounts on DAP, urea, and NPK fertilizers. This aggressive selling by Russia caused a decline in market share for other fertilizer exporters, including China, Egypt, Jordan, and the United Arab Emirates.
Russian companies have now stopped offering discounts on fertilizers and are selling them at market prices. This change has led to an increase in import costs for India.
Rising Global Prices
Global fertilizer prices have been surging over the past two months, making it challenging for Indian companies to accumulate stocks for the upcoming winter season. This is particularly concerning as demand for DAP rises for the wheat crop during this time.
Impact on Indian Farmers
The increase in fertilizer prices puts a burden on Indian farmers, as the government may need to increase subsidies to protect them. This comes at a crucial time, as state elections are approaching.
The decision by Russian companies to stop offering discounted fertilizers to India has led to an increase in import costs and subsidy burden. This change comes at a time when global fertilizer prices are rising, putting additional pressure on Indian farmers.
Reporting by Rajendra Jadhav and Polina Devitt; Editing by Tony Munroe and David Evans
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