(MENAFN- Trend News Agency)
India has imported about 3.5 lakh tonnes (lt) of di-ammonium
phosphate (DAP) fertiliser from Russia, which would be arriving
during the April to July period.
The imports have been contracted by Indian Potash Ltd, Rashtriya
Chemicals & Fertilizers, Chambal Fertilisers and Krishak Bharati
Cooperative at landed prices of $920-925 per tonne, cost plus
freight (CFR). This is below the rates paid by other countries for
DAP, mainly from China, Saudi Arabia, Morocco and Jordan.
Bangladesh's Agriculture Ministry, earlier this month, awarded
an annual tender for import of 8.12 lt at $1,020-1,030 per tonne.
Similarly, Indonesia and Thailand are reported to have paid $992
and $1,000 per tonne CFR respectively for 25,000-26,000 tonnes
India contracting DAP from Russia's PhosAgro at $920 per tonne
CFR – which is also the price cap that the government has put on
importers – is likely to put pressure on other suppliers,
especially Morocco's OCP Group, China's YUC and Saudi Arabia's
Ma'aden and SABIC. They may have to cut prices to retain market
“It is a smart strategy to diversify one's supply sources. We
did in urea by importing a large quantity of 47,000 tonnes for the
first time from the US. The same is being done by sourcing more DAP
(the country's second most-consumed fertiliser) from Russia at a
discount to international prices,” industry sources told The Indian
Total DAP import arrivals for April-July are projected at
9.5-9.8 lt. Out of that, roughly 3.5 lt will be supplied by
PhosAgro, with Ma'aden and SABIC's share at 2.8 lt, YUC's at 1.27
lt and OCP's at 1.03 lt.
India, in 2021-22 (April-March), imported 58.60 lt of DAP valued
at $4,007.50 million. The bulk of the 58.60 lt imported was
accounted for by China (20.43 lt), Saudi Arabia (19.33 lt), Morocco
(12.13 lt) and Jordan (2.46 lt).
Importing from Russia has presented problems from sanctions,
forcing“innovative methods” of making payments.“The risk in this
case has had to be borne by the seller (PhosAgro), since banks
weren't willing to open letters of credit (to serve as a guarantee
for payment) on the importers' behalf. Payments were then made by
telegraphic transfer to the seller's account, upon the latter
physically presenting the necessary documents (copy of invoice,
certificate of origin, bill of lading, insurance policy, etc) 7-10
days after the cargo had set sail,” the sources explained. The
total voyage time from Russia's Baltic Sea ports is 25-30 days.
“The imports have come at the right time when sowings for the
kharif season have just started and will peak in July,” the sources
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