India's growing production and export of Diammonium Phosphate (DAP) fertil.. Diammonium phosphate, also known as DAP, is a highly water-soluble crystalline salt with the chemical formula (NH4)2HPO4. It is mainly used as a fertilizer and serves as an excellent source of nitrogen and phosphorus for plants. DAP supplies 16% nitrogen and 46% phosphorus pentoxide (P2O5) to the soil. It dissolves readily in water and is easily absorbed by plant roots. Besides agriculture, DAP also finds application as a food additive, animal feed supplement, and industrial uses. DAP Production in India India is one of the largest producers and consumers of DAP in the world. The country has an installed production capacity of over 11 million tons per annum through various public and private sector DAP plants. Major DAP manufacturing companies in India include Hindustan fertilizers, Zuari Agro Chemicals, Coromandel International, Paradeep Phosphates Ltd, Greenam Fertilizers and Fertilisers and Chemicals Travancore Ltd. These companies operate modern ammonia-Phosphoric acid based DAP plants located near big ports for easy import of raw materials like rock phosphate and easy export of surplus production. The raw materials used for DAP production in India are rock phosphate, ammonia, phosphoric acid, and sulphur. While ammonia is produced indigenously from natural gas, India needs to import around 6-7 million tons of rock phosphate annually to meet its requirements for DAP and other P-fertilizers. India imports rock phosphate mainly from Morocco, Jordan, and Egypt. Indian DAP manufacturers have been consistently working to enhance energy efficiency and reduce production costs through technological upgradation and adoption of best practices. Government Support for DAP Production The Government of India recognizes the importance of India Diammonium Phosphate (DAP) in ensuring national food security and supporting farmers. It provides various subsidies and other incentives to promote DAP production and use in the country. For example, the government fixes the Maximum Retail Price (MRP) for DAP and bears a part of the difference between MRP and international price to keep DAP affordable for farmers. Viability Gap Funding is also provided to DAP projects set up in backward regions or based on environment-friendly technologies. This helps attract private investments in DAP sector. India's Role in Global Trade Though self-sufficient in DAP, India is emerging as a key exporter in global trade due to its competitively priced surplus production. In 2020-21, India exported around 2.5 million tons of DAP, earning foreign exchange worth $800 million. Major export markets include Thailand, Bangladesh, Indonesia, Vietnam, and Egypt. The Indian DAP is highly sought after globally due to its timely availability, consistent quality as per international standards, and reliable supply chain. Indian manufacturers are making continuous efforts to further expand DAP exports to newer regions like Africa and Latin America. To promote its exports, India actively participates in international fertilizer conventions and trade fairs. It also signs bilateral/multilateral pacts with key buyer nations to boost volumes. Various incentives and lines of credit are offered to encourage exports. The logistics support from major ports with good connectivity to global shipping routes has provided Indian DAP an edge over suppliers from other countries. All these factors have cemented India's image as a rapidly emerging leader in international DAP trade. Opportunities and Challenges With rising global population and decreasing per capita agricultural land, the demand for high-efficiency fertilizers like DAP is projected to grow substantially in the coming years. This opens huge opportunities for India to augment its DAP exports manifold. However, tough competition from Chinese and Middle Eastern suppliers, volatility in raw material prices, and constraints of rock phosphate availability also pose challenges. Fluctuations in currency exchange rates can impact export realizations. Stringent environmental norms related to emissions and effluents are another concern area. Geopolitical tensions affecting trade routes may temporarily disrupt supplies in some years. Overall, if India succeeds in addressing the challenges through technological innovations, effective risk management, and further strengthening of trade relations, it has strong potential to grab a major share in the rapidly growing global DAP trade. The existing world-class manufacturing infrastructure, established quality, policy support, and proactive export strategy can help realize this potential. India has transformed from a DAP importing to a self-reliant and significant exporting nation over the past few decades, mainly due to the visionary fertilizer policies and R&D initiatives and efforts of public and private sector DAP plants. Though challenges remain, the future prospects of India taking a leadership role in global DAP trade are promising if opportunities are tapped properly. Continuing reforms, adoptation of greener technologies, assured raw material supply, and widening the market reach can help India DAP scale new heights in the service of world agriculture. Get this Report in Japanese Language インド リン酸二アンモニウム（DAP） Get this Reports in Korean Language 인도 디암모늄 인산염(DAP) About Author: Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights. (LinkedIn: www.linkedin.com/in/alice-mutum-3b247b137 )
Arabic
French
Spanish
Portuguese
Deutsch
Turkish
Dutch
Italiano
Russian
Romaian
Portuguese (Brazil)
Greek