SME Editorial
India on Wednesday warned global fertilisers suppliers against price cartelisation saying a steep rise in crop nutrients in recent times is unacceptable and consuming nation will look at the alternative if this is not checked.
Addressing the annual seminar of the Fertiliser Association of India (FAI), Chemicals and Fertilisers Minister Mansukh Mandaviya said India has already innovated alternate fertilisers like nano liquid urea and nano liquid Di-ammonium Phosphate (DAP) as part of its efforts to become self-sufficient.
The minister pointed out that global suppliers took advantage of the crisis in the global market during the Russia-Ukraine war and raised prices of phosphatic and phosphoric acid He said global prices of DAP have increased to USD 590 per tonne from USD 450 in just 15 days.
“It’s not good. This is not the time that we do not work together,” he said and asked global suppliers not to engage in price cartelisation. The minister said this is not in the interest of everyone.
India imports a large quantity of urea, DAP and other fertilisers to meet domestic demand.
Mandaviya told the CEOs and representatives of global companies that India has an important role to play for its own as well as the food security of the world.
He said the global companies would lose long-term business in their pursuit of trying to take advantage of the short-term supply crisis by raising prices.
“It’s not good. This is not the time that we do not work together,” he said and asked global suppliers not to engage in price cartelisation. The minister said this is not in the interest of everyone.
India imports a large quantity of urea, DAP and other fertilisers to meet domestic demand.
Mandaviya told the CEOs and representatives of global companies that India has an important role to play for its own as well as the food security of the world.
He said the global companies would lose long-term business in their pursuit of trying to take advantage of the short-term supply crisis by raising prices.
The minister told global suppliers do not think that India has no other option but to purchase fertilisers at high rates.
Mandaviya reminded the global companies that Indian companies did not raise prices of medicines and vaccines during the COVID-19 pandemic and supplied them to more than 150 countries.
The minister highlighted that the demand for nano-liquid urea is rising.
“We want long-term friendship. We want long-term cooperation,” he said.
According to FAI, India produced 28.5 million tonnes of urea and imported 6-7 million tonnes last fiscal. In DAP, the domestic output is around 4 million tonnes while import is about 6 million tonnes.
Fertiliser Association of India (FAI) Chairman N Suresh Krishnan said the global prices of DAP have risen to USD 595 per tonne from USD 440 per tonne in July this year. DAP was priced at USD 924 per tonne in April 2022.
The phosphoric acid prices declined from USD 1,530 per tonne in April 2022 to USD 970 per tonne in July 2023 and again rose to USD 985 per tonne in October 2023.
“Issue is cartelisation. The issue is that there should be no situation-based pricing. Where you will get such a big market,” he told global companies.
Mandaviya suggested them to have a long-term business in India and there should be no price fluctuation.
If global price cartelisation continues, India will extensively promote alternate fertilisers, he warned. “This is not in the interest of anyone”.
Ammonia prices have shown a similar trend which was USD 1,530 per tonne in April 2022, went down to USD 285 in July 2023 and have again increased to USD 575 in October 2023.
