DAP scarcity

The uncertainty over the adequate availability of di-ammonium phosphate (DAP) in the rabi season should be a matter of disquiet. Any shortage of this key phosphatic fertiliser at this stage can jeopardise the production prospects of wheat, among other rabi crops. What is particularly unfortunate is that the DAP crisis now being anticipated is the result largely of lack of timely planning for imports, with the situation further complicated by the tight supply position and high prices of DAP in the global market. Whatever the causes, only a part of the needed 3 million tonnes of imported DAP may actually land at Indian ports in time for the rabi crop planting. (DAP is a nutrient that needs to be applied at the time of sowing, to facilitate root establishment.)

The international prices of DAP are high owing to supply constraints in the major producing nations, including the US . To compound the problem, the domestic production of DAP has been relatively low this year due to policy uncertainties and problems in procuring phosphoric acid. While the wheat harvest could be hit by a DAP shortage, also at stake is the much-needed balance in the use of plant nutrients, which usually tends to tilt in favour of nitrogen (urea). Any deterioration in the nutrient equilibrium will impair soil health and fertility.

Why has such a scenario been allowed to develop, when it was known that the demand for DAP would surge this year in the wake of the good monsoon and the incentives offered for boosting grain production through liberal hikes in official support prices? The reports of DAP shortage have been coming from various states for months. In response, all that the fertiliser ministry has done is to get Cabinet approval for the import of DAP's substitutes like mono-ammonium phosphate (MAP) and triple super phosphate (TSP). Technically speaking, these fertilisers can be used as alternatives to DAP, but there are attendant issues such as global availability, the subsidy available, farm gate prices, distribution arrangements and the like. Besides, farmers not well versed with the use of these fertilisers would have to be suitably guided on the precise doses for optimal benefits.

This muddle is another distressing reflection of the continued mishandling of the fertiliser sector as a whole, which is bedevilled by broader problems concerning the full range of activities: production, distribution, imports and pricing. The complex system of price setting, subsidy fixing, import management and distribution control has led repeatedly to problems at ground level, so that everyone involved in the industry is exposed constantly to a series of uncertainties. Life would be made much simpler for the industry and farmers alike if the government were to introduce some reform of fertiliser policies. The root of the issue is the management of the fertiliser subsidy, which is best replaced by direct income support to farmers. The industry can then function along normal, commercial lines, and the end result for the farmer would be a net welfare gain.