The government has clarified recent media reports claiming a nationwide shortage of Diammonium Phosphate (DAP) and its potential impact on the Rabi crop as misleading and factually incorrect. These reports have raised concerns, but the government assures that the situation is being managed effectively.
According to the latest statement, the Maximum Retail Price (MRP) of DAP has remained stable at Rs. 1350 per 50 kg bag since the onset of the Covid-19 pandemic. Contrary to some claims, the government has not reduced the subsidy on DAP. In fact, the subsidy has been increased to ensure farmers continue to benefit despite price fluctuations in the global market.
Two key decisions by the Cabinet have further strengthened support for farmers. First, a special package of Rs. 3500 per metric tonne (MT) has been introduced, with a total cost of Rs. 2625 crores. This package aims to make DAP procurement sustainable for companies and shield them from the effects of international price volatility. Second, the subsidy on DAP has been linked to global market prices, ensuring that even if procurement prices increase due to global factors, the procurement capacity of fertilizer companies remains unaffected. As a result, farmers will continue to have access to DAP without facing higher costs.
Additionally, the budgetary allocation for the Rabi season of 2024-25 has been significantly increased to Rs. 24,475 crores, demonstrating the government's focus on securing fertilizer availability and supporting agricultural productivity.
The availability of DAP has been impacted by certain geopolitical factors, including disruptions in shipping routes. However, the Department of Fertilizers has taken intensive steps to boost DAP availability between September and November 2024.
Diammonium Phosphate (DAP) is an essential fertilizer containing 46% phosphorus, a crucial nutrient that supports early-stage crop development, particularly in root establishment. This makes DAP a vital component in ensuring healthy plant growth, especially during the initial phases.
Phosphorus aids in energy transfer within plants, contributing to robust root systems and improving overall crop yields. Given the critical role DAP plays in agriculture, its availability during the Rabi season is paramount for farmers.
