FAI Urges Revision of Fertiliser Prices to Reflect Nutrient Content

New Delhi, Dec 4 (KNN) The Fertiliser Association of India (FAI) has called for an urgent restoration of a proper price hierarchy in fertilisers, aligning their market rates with actual nutrient content.

The association’s appeal comes amid concerns over declining sales of di-ammonium phosphate (DAP) and a deteriorating nutrient balance in Indian agriculture.

Currently, the government has informally fixed the maximum retail price (MRP) of DAP at Rs 1,350 per 50-kg bag. DAP, which contains 18 per cent nitrogen (N) and 46 per cent phosphorous (P), is priced below muriate of potash (MOP) and complex fertilisers like 12:32:16:0 and 10:26:26:0, despite its higher P content.

This pricing anomaly has drawn criticism from FAI Chairman N. Suresh Krishnan, who emphasized the need for a revised hierarchy to encourage balanced fertiliser use.

“A fertiliser with 46 per cent P should be priced higher than those containing only 26 per cent or 32 per cent of the same nutrient. Proper pricing will incentivise farmers to apply nutrients proportionately,” Krishnan stated.

He suggested a pricing structure where DAP is the most expensive, followed by complexes, MOP, and products like 20:20:0:13.
The mismatch in pricing appears to have impacted DAP sales, which fell by 25.4 per cent year-on-year to 56.93 lakh tonnes (lt) during April-October 2024.

Lower opening stocks, at 11.52 lt on November 1, 2024, compared to 17.69 lt a year earlier, have further compounded the issue. DAP is critical for root establishment during sowing, making the slump in sales a cause for concern.

Krishnan noted some substitution by farmers, with complex fertiliser sales rising 23.5 per cent year-on-year to 87.20 lt in the same period. However, he warned of worsening nutrient imbalances due to the over-application of nitrogen through urea.

The ideal NPK ratio of 4:2:1 has widened to 10.9:4.4:1 in 2023-24, a significant deviation from 6.5:2.8:1 in 2020-21. The FAI emphasised that a balanced approach to fertiliser pricing and usage is essential to sustain soil health and agricultural productivity.

(KNN Bureau)