Fertilizer use shows sharp fall in DAP use in July 2025, with demand for urea holding steady while diammonium phosphate (DAP) recorded a steep decline, according to provisional industry data.
Officials said total urea offtake remained largely stable compared to the same period last year, reflecting consistent demand from farmers ahead of the Kharif crop season. However, DAP sales plunged sharply, attributed to higher prices and limited affordability for small growers.
Industry experts noted that DAP imports have fallen due to global supply constraints and elevated international rates, pushing local prices beyond the reach of many farmers. The shift has led cultivators to rely more on urea and other nitrogen-based fertilizers, which remain comparatively cheaper.
Analysts warn that reduced use of DAP — a key source of phosphorus — could impact soil fertility and crop yields in the medium term. They added that unless prices stabilize, farmers may continue to limit phosphate fertilizer application, potentially affecting productivity of key crops like cotton, rice, and maize.
The government has been exploring policy measures to support balanced fertilizer use, including targeted subsidies, promotion of alternative nutrients, and negotiations to secure imports at competitive rates.
Market observers say fertilizer trends in the coming months will depend on rainfall patterns, crop outlook, and global commodity prices. For now, the mixed performance highlights continuing challenges for both farmers and suppliers amid rising input costs.
