Huge increase in the global prices of fertilizers 2021:Rising prices in the global market have had an impact on domestic production along with imports. If the government does not take proper decisions at the right time, then farmers may face shortage of fertilizers.
The prices of fertilizers are going up in the international market. Many global factors are affecting the prices. If this period continues, there may be a fertilizer crisis in India too.
Huge increase in the global prices of fertilizers 2021
At present, there is less scope for shortage of fertilizers for the Kharif season, but due to the increased prices, domestic companies are avoiding imports. In such a situation, farmers may have to face shortage of fertilizers in the upcoming Rabi season.
According to a report by Rural Voice, if the government does not increase the fertilizer subsidy in time, then farmers may face problems in the Rabi season.
More recently, the Modi government at the Center had announced to increase fertilizer subsidy on DAP so that the burden of increased prices in the global market does not fall on the farmers. But the situation in the international market has still not improved and the phase of steep increase in prices is going on.
Due to the rise in prices, there has been a decrease in import and domestic production.
The report said that rising prices in the global market have had an impact on imports. There has been a decline in the import of fertilizers during April to July, 2021. The import of urea has come down to 22.05 lakh tonnes as against 23.43 lakh tonnes.
At the same time, the import of DAP has come down from 24.06 lakh tonnes to 22.03 lakh tonnes. Potash mop has come down from 16.06 lakh tonnes to 10.33 lakh tonnes. While the import of complex fertilizers has been 5.45 lakh tonnes during April to July, 2021 as compared to 6.43 lakh tonnes in the same period in the previous year.
According to the news of Rural Voice, apart from imports, domestic production has also been affected and the production of urea has come down to 78.82 lakh tonnes as against 82.18 lakh tonnes.
There has also been a shortfall in the production of DAP by about 1.5 lakh tonnes. More or less this has been the case for all fertilizers and their domestic production has come down.
China’s decision and sanctions on Belarus made it difficult for India
It is a matter of relief that there will be no shortage of manure for Kharif season and there is still time for Rabi season. In such a situation, the government has enough time to take a decision in the interest of the farmers and it is expected that the government will take necessary steps to ensure that there is no shortage of fertilizers due to the increased prices before the beginning of the Rabi season.
In fact, China has banned the export of urea and DAP to meet domestic needs. In addition, Belarus is unable to export due to economic sanctions imposed by Western countries. China is the second largest exporter of Urea and DAP to India.
At the same time, after Canada, India exports the maximum MOP from Belarus itself. If the government does not take appropriate decisions at the right time, then the effect of increase in global prices and sanctions is bound to fall on India’s agriculture sector.
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