India's Landmark Fertilizer Import: Boosting DAP in Global Market

India is set to make an unprecedented import of 1.35 million metric tons of diammonium phosphate (DAP) in a single tender. This move comes as New Delhi seeks to counteract the disruption in fertilizer supplies caused by the ongoing Iran conflict.

The vast purchase, representing about 25% of India's annual DAP imports, is anticipated to strain global supplies and elevate prices, already spiked by increased energy and freight expenses. Indian Potash Ltd (IPL) has agreed on a deal to acquire 765,000 tons at $930 per ton for west coast delivery and 581,500 tons at $935 per ton for the east coast.

In April, IPL issued a tender for 1.2 million tons of DAP, receiving bids totaling around 2.3 million tons with prices from $930 to $1,100 per ton. Following negotiations, IPL closed on 1.35 million tons. Shipments must depart by August 15, with expectations they will be sourced from Saudi Arabia, Russia, Egypt, and Morocco.

(With inputs from agencies.)