India Secures Record 1.35 Million Tonnes DAP Import Amid Supply Concerns

India is set to import a record 1.35 million metric tonnes of diammonium phosphate (DAP) through a single tender. The move comes amid supply disruptions linked to the Iran conflict, prompting the government to secure adequate fertiliser availability.

The procurement is being handled by Indian Potash Ltd (IPL), a key importer of fertilisers. The development is expected to influence both domestic availability and global market dynamics.

Record Tender and Procurement Details

Indian Potash Ltd (IPL) initiated a large-scale tender in April to procure 1.2 million tonnes of DAP. However, strong supplier participation led to offers reaching approximately 2.3 million tonnes, enabling higher procurement.

IPL eventually finalised purchases of 1.35 million tonnes after multiple suppliers matched the lowest bid. This volume represents nearly 25% of India’s annual DAP imports, marking the largest single tender in the country’s fertiliser procurement history.

Pricing Structure and Delivery Terms

The procurement has been split across west and east coast deliveries with distinct pricing agreements. IPL agreed to purchase 765,000 tonnes at $930 per tonne on a cost-and-freight (CFR) basis for the west coast.

Another 581,500 tonnes were secured at $935 per tonne CFR for delivery to the east coast. The overall price range in the tender bids varied between $930 and $1,100 per tonne, indicating competitive pricing despite tight global supply conditions.

Global Supply Pressures and Market Impact

The large-scale procurement is taking place against the backdrop of ongoing disruptions in global fertiliser supply chains. The Iran conflict has affected availability, while rising energy and freight costs have further pushed up prices.

India’s decision to secure substantial volumes is likely to tighten global DAP supply further in the near term. This has already contributed to upward pressure on prices across international fertiliser markets.

Domestic Demand and Strategic Importance

DAP is a critical fertiliser widely used in Indian agriculture, especially during key sowing seasons. Ensuring timely supply is essential to maintain agricultural productivity and food security.

The government’s proactive procurement reflects efforts to avoid shortages and stabilise domestic availability. By securing large quantities in advance, India aims to mitigate the risks associated with volatile global supply conditions and price fluctuations.

Read More: India’s Gold Imports Hit Record USD 71.98 Billion in FY26 Amid Price Surge.

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Conclusion

India’s decision to import a record 1.35 million tonnes of DAP highlights its response to evolving global supply challenges. The procurement underscores the importance of fertiliser security in supporting agricultural output.

Pricing agreements and strong supplier participation indicate competitive dynamics within the tender process. The development is expected to influence both domestic supply stability and global fertiliser market trends.

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