Wednesday, October 5, 2022
HomeEuropean NewsRussia turns into India’s high DAP fertiliser provider

Russia turns into India’s high DAP fertiliser provider



India has imported about 3.5 lakh tonnes (lt) of di-ammonium
phosphate (DAP) fertiliser from Russia, which might be arriving
in the course of the April to July interval.

The imports have been contracted by Indian Potash Ltd, Rashtriya
Chemical substances & Fertilizers, Chambal Fertilisers and Krishak Bharati
Cooperative at landed costs of $920-925 per tonne, value plus
freight (CFR). That is under the charges paid by different international locations for
DAP, primarily 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.
Equally, Indonesia and Thailand are reported to have paid $992
and $1,000 per tonne CFR respectively for 25,000-26,000 tonnes
cargo every.

India contracting DAP from Russia’s PhosAgro at $920 per tonne
CFR – which can be the worth cap that the federal government has placed on
importers – is prone to put strain on different suppliers,
particularly Morocco’s OCP Group, China’s YUC and Saudi Arabia’s
Ma’aden and SABIC. They could have to chop costs to retain market
share.

“It’s a good technique to diversify one’s provide sources. We
did in urea by importing a big amount of 47,000 tonnes for the
first time from the US. The identical is being accomplished by sourcing extra DAP
(the nation’s second most-consumed fertiliser) from Russia at a
low cost to worldwide costs,” business sources instructed The Indian
Categorical.

Whole DAP import arrivals for April-July are projected at
9.5-9.8 lt. Out of that, roughly 3.5 lt will probably be provided 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 majority 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 introduced issues from sanctions,
forcing “modern strategies” of constructing funds. “The danger on this
case has needed to be borne by the vendor (PhosAgro), since banks
weren’t prepared to open letters of credit score (to function a assure
for cost) on the importers’ behalf. Funds had been then made by
telegraphic switch to the vendor’s account, upon the latter
bodily presenting the required paperwork (copy of bill,
certificates of origin, invoice of lading, insurance coverage coverage, and so forth) 7-10
days after the cargo had set sail,” the sources defined. The
whole voyage time from Russia’s Baltic Sea ports is 25-30 days.

“The imports have come on the proper time when sowings for the
kharif season have simply began and can peak in July,” the sources
added.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments