Fertiliser firms want government to tap diplomatic channels on supplies

NEW DELHI: Fertiliser manufacturers have sought the government’s intervention through diplomatic channels to convince the suppliers of raw materials for phosphatic fertilisers to keep the pipeline smooth and prices reasonable. The rate of raw materials has increased significantly in the past couple of months. Last week, the fertiliser ministry had directed all the manufacturers to ensure that the nutrients are sold at old prices and no hike is affected.
According to officials the issue of spike in raw materials of phosphatic or non-urea fertilisers came up at a meeting organised by the chemicals and fertilisers ministry. “The concerns of the companies with regard to the increase in prices of raw material globally were understood. The firms highlighted that in the last three to four months, international prices of raw material and finished products have witnessed a sharp increase due to competing demand from major fertiliser consuming markets like the US, Brazil and China,” the ministry said.
It said the firms informed that with the imposition of countervailing duty by the US on imports from Morocco and Russia, there is a realignment of the supply chain with West Asia diverting the supplies to the US. Moreover, China’s active domestic season and reduced exports impacted supplies to Indian subcontinent with global players seeking higher DAP prices prevailing in Europe and US markets.
The ministry said there is comfortable urea availability across all states during the Kharif 2021 season.