Indian Farmers Fertiliser Cooperative raised Prices of Di-ammonium Phosphate & Complexes

The Indian Farmers Fertiliser Cooperative (IFFCO) raised prices of di-ammonium phosphate (DAP) and complexes for the second time in the month of April 2011. The decision was taken ahead of plantings for the kharif season, set to commence from June.

IFFCO fixed the maximum retail price (MRP) for DAP sold through its societies at around Rs 12000 a tonne, which excludes State-level and local levies. Rs 12,000-a-tonne rate for DAP comprises a base price of Rs 11878 and a 1.03 per cent (Rs 122.34) excise duty-cum-education cess levied in the 2011-12 Union Budget.

IFFCO blamed hardening of global prices since January 2011 of not just fertiliser products, but even intermediates such as rock phosphate, phosphoric acid, sulphur and ammonia for its decision. The latest price rise took the cumulative rise in DAP prices from 1 April 2010 – when the MRPs of non-urea fertilisers were formally de-controlled alongside the introduction of a nutrient based subsidy (NBS) regime to over 28 per cent.

IFFCO also hiked the MRPs of complex fertilisers, containing varying proportions of nitrogen (N), phosphorous (P), potash (K) and sulphur (S). The cumulative hike in their case works out even higher at 50-60 per cent, while being just 11 per cent for urea, which is outside the purview of the NBS.

Others fertilizer concerns like Coromandel International, Zuari Industries and Tata Chemicals, are likely to follow suit.

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