ENA Sectors 2024-12-04 16:50:07 <p><strong>New Delhi, Dec 4 (KNN) </strong>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.</p> <p>The associations appeal comes amid concerns over declining sales of di-ammonium phosphate (DAP) and a deteriorating nutrient balance in Indian agriculture.</p> <p>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.</p> <p>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.</p> <p>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.</p> <p>He suggested a pricing structure where DAP is the most expensive, followed by complexes, MOP, and products like 20:20:0:13.<br /> 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.</p> <p>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.</p> <p>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.</p> <p>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.</p> <p><strong>(KNN Bureau)</strong></p> 40141 https://knnindia.co.in/news/newsdetails/sectors/fai-urges-revision-of-fertiliser-prices-to-reflect-nutrient-content 2024-12-04 16:50:07 knnindia.co.in