The Indian government heavily subsidises fertilisers to make them affordable for farmers.
After several reports of farmers in Madhya Pradesh struggling because of a shortage of a vital fertiliser, di-ammonium phosphate or DAP, which is required at the sowing stage, the Congress has hit out at the BJP government in the state as well as the Centre, accusing them of being “anti-farmer”.
Former chief minister Digvijaya Singh and state Congress President Jitu Patwari criticised Union Agriculture Minister Shivraj Singh Chouhan, Chief Minister Dr Mohan Yadav and state Agriculture Minister Aidal Singh Kansana, holding them responsible for the shortage and said their failure in tackling the situation has led to a major crisis in the agricultural sector.
Mr Kansana has, however, issued a strong rebuttal, accusing the Congress of spreading lies and misleading farmers because bypolls have been announced for two Assembly seats in the state. He insisted there is no shortage of fertilisers in Madhya Pradesh but said there have been delays in the arrival of consignments of DAP because of the Russia-Ukraine war and Israel’s conflicts with Hamas and Hezbollah.
Geopolitical Tensions
Approximately 90% of India’s DAP supply comes from international sources and the impacts of the conflicts have disrupted traditional shipping routes through the Suez Canal, forcing vessels to take longer and costlier alternative routes, such as via the South Atlantic or the Mediterranean Sea. This has not only delayed shipments but significantly increased transportation and insurance costs, driving up the price of DAP.
Russia and Ukraine are also key suppliers of fertilisers to India and consignments have been affected because of the war between the countries. Additionally, China, which was once a major supplier of DAP to India, has halted exports to focus on meeting its domestic demand, adding further strain on India’s fertiliser supply.
Phosphate rock, often referred to as “white powder,” is a valuable and irreplaceable resource crucial for the world’s agricultural needs. Unlike nitrogen, which is abundant in the atmosphere, phosphate is a finite resource and cannot be manufactured. It is one of the key ingredients in making DAP and NPK (nitrogen-phosphorus-potassium) fertilisers, which are essential for crop growth.
Morocco, which holds 72% of the world’s phosphate reserves, is a key supplier of phosphate rock to India. But the Red Sea region has witnessed frequent attacks on commercial ships by Yemen-based Houthi rebels, part of Iran’s ‘Axis of Resistance’, which includes Hamas and Hezbollah. This has led to many suppliers taking longer routes and avoiding the Suez Canal.
Government Subsidies
The Indian government heavily subsidises fertilisers to make them affordable for farmers. For instance, a bag of DAP which costs the government around Rs 2,200 is sold to farmers for approximately Rs 1,250. The government’s ongoing efforts to procure and distribute fertilisers at subsidised rates are becoming more challenging as global supply chains remain unstable.
Madhya Pradesh, which is one of India’s leading states in terms of agricultural produce, requires around 7 lakh metric tonnes of DAP for the rabi season, with the highest demand occurring during sowing, particularly in regions like Gwalior and Chambal. The DAP requirement peaks at the time of sowing, followed by a demand for urea after irrigation. Different regions in the state sow different crops at varying times, leading to their requirements being different.
The rabi sowing period typically spans from mid-October to mid-November, during which around 2 lakh metric tonnes of fertiliser is required in Madhya Pradesh. The demand increases from north to south and west to east, with the Malwa region, particularly Indore, requiring fertiliser earlier for crops like potatoes.
Government sources said Madhya Pradesh has sufficient fertilisers for this year’s Rabi season. A total of 16.43 lakh metric tonnes of fertilisers are available, which includes 6.88 lakh metric tonnes of urea, 1.38 lakh metric tonnes of DAP, 2.7 lakh metric tonnes of NPK, 4.08 lakh metric tonnes of DAP + NPK, 4.86 lakh metric tonnes of SSP (single superphosphate), and 0.61 lakh metric tonnes of MOP (muriate of potash).