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What is the story about?
India is set to import a record 1.35 million metric tons of diammonium phosphate (DAP) in a single tender, government sources said, as the disruption in fertiliser supplies due to the Iran conflict prompts New Delhi to secure larger supplies.
The purchases, equivalent to about a quarter of India’s annual DAP imports, are likely to tighten global supplies and support prices, which have already risen on higher energy and freight costs.
Indian Potash Ltd (IPL) agreed to buy 765,000 tons of DAP at $930 per ton on a cost-and-freight (CFR) basis for delivery to the west coast, and another 581,500 tons at $935 per ton CFR for delivery to the east coast, the sources said, declining to be named as they were not authorised to speak to the media.
IPL floated the tender in April seeking 1.2 million tons of DAP and received offers totalling about 2.3 million tons, with prices ranging from $930 per ton to $1,100 per ton.
The company eventually agreed to purchase 1.35 million tons after several suppliers matched the lowest offer, the sources said.
According to the tender document, shipments must leave loading ports by August 15.
Suppliers are expected to source DAP mainly from Saudi Arabia, Russia, Egypt and Morocco, the sources added.
India, one of the world’s biggest fertiliser importers, last month agreed to buy a record 2.5 million tons of urea in a single tender at prices nearly double those paid two months earlier.
The purchases, equivalent to about a quarter of India’s annual DAP imports, are likely to tighten global supplies and support prices, which have already risen on higher energy and freight costs.
Indian Potash Ltd (IPL) agreed to buy 765,000 tons of DAP at $930 per ton on a cost-and-freight (CFR) basis for delivery to the west coast, and another 581,500 tons at $935 per ton CFR for delivery to the east coast, the sources said, declining to be named as they were not authorised to speak to the media.
IPL floated the tender in April seeking 1.2 million tons of DAP and received offers totalling about 2.3 million tons, with prices ranging from $930 per ton to $1,100 per ton.
The company eventually agreed to purchase 1.35 million tons after several suppliers matched the lowest offer, the sources said.
According to the tender document, shipments must leave loading ports by August 15.
Suppliers are expected to source DAP mainly from Saudi Arabia, Russia, Egypt and Morocco, the sources added.
India, one of the world’s biggest fertiliser importers, last month agreed to buy a record 2.5 million tons of urea in a single tender at prices nearly double those paid two months earlier.
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