The Ministry of Chemicals and Fertilizers has given its nod to nano DAP (di-ammonium phosphate).
- It has been approved by the Agriculture Ministry and also been notified in the Fertiliser Control Order. Fertilizer Control Order is the mother act that regulates the sale, pricing, distribution and other formalities of fertilizers in India.
- Prime Minister Narendra Modi has termed the approval of the nano liquid DAP (Di-Ammonium Phosphate) fertiliser as an important step towards making life easier for the farmers.
Key points
- Now, a bag of DAP will be available in the form of a bottle of DAP. Fertiliser cooperative IFFCO, which introduced nano liquid urea in 2021, announced that the government has approved the launch of its nano DAP fertiliser in the market.
- In December 2022, IFFCO had said it would soon launch nano DAP at Rs 600 per 500-ml bottle, a move that will help India save foreign exchange and also reduce government subsidy significantly.
- A 500 litres bottle of Nano DAP is expected to be priced at around Rs 600, which is half the present subsidized rate of a 50-kilogram bag of DAP which costs around Rs 1,350-1,400 to the farmer.
About DAP and subsidy
- DAP is the second most consumed fertilizer in the country after urea and out of the estimated annual consumption of around 10-12.5 million tonnes; local production is around 4-5 million tonnes while the rest has to be imported.
- Nano DAP is also expected to contribute in bringing down the annual subsidy on non-urea fertilizers.
Fertilizers pricing
- The maximum retail price (MRP) of urea is currently fixed by the Government. Companies are obliged to sell at this administered price, with their higher cost of production or imports being reimbursed as subsidy by the Centre.
- The other fertilisers are technically “decontrolled” since April 2010, with the Centre only paying a fixed per-tonne subsidy to ensure “reasonable levels” of prices.
- Retail prices of phosphatic and potassic (P&K) fertilisers, including DAP were ‘decontrolled’ in 2010 with the introduction of a ‘fixed-subsidy’ regime as part of NBS (Nutrient Based Subsidy) mechanism.
- The Nutrient Based Subsidy Scheme provides subsidies for all non-urea-based fertilizers.
- Urea and DAP are high-analysis fertilisers, containing more than 30 per cent of any single nutrient. Urea has 46 per cent N, while DAP has 46 per cent and also 18 per cent N.
