In this article, CCM pays special attention to the market conditions of DAP in
India, a major export destination of China's DAP. In general, India's DAP
output cannot meet the demand from its domestic market and it has to rely on
import to a great extent. In FY2015-2016, India's demand for DAP shows an
upward trend, thus, its demand for China's DAP will increase accordingly since
China is one of its major import origins.
Source: Bing
The budget for fertilizer subsidy in the financial year of 2015-2016
(FY2015-2016) in India reached USD116.07 million, up by 2.80% compared with
USD108.07 million in FY2014-2015. Thereinto, subsidy percentage for PK compound
fertilizer increased significantly and subsidy for urea also rose to USD19.56
million, up by 1.70% year on year.
According to the previous situations, the major object of India's subsidy
policy is its domestic fertilizer manufacturers and importers; the major content
is to subsidize the transportation and the price difference between the import
price and the retail price and the goal of the subsidy is to help farmers to
purchase fertilizer at low price for agricultural production.
The further increased subsidy for fertilizer in India will increase farmers'
purchasing power of fertilizer and stimulate the consumption of phosphate
fertilizer in the country, pulling up the demand for phosphate fertilizer in
the country.
However, data from FAI shows that the actual total output of India's diammonium
phosphate (DAP) is always lower that it's planned output. From April 2014 to
Jan. 2015, the planned output of DAP in India was 4.06 million tonnes while the
actual output was 2.76 million tonnes, only 68% of the planned output. This
means that the overall output of DAP in India is still small and it cannot meet
the demand from its domestic market and it has to rely on import to a great
extent.
It is worth noting that China is one of the major import origins of India. From
March to April 2015 (sailing date), purchasers from India purchased 483,000
tonnes of DAP in total and 190,000 tonnes were from China, accounting for
39.34% of the total.
Besides, according to data released by the General Administration of Customs of
the People's Republic of China, in Jan. 2015, China exported 240,683.22 tonnes
of DAP in total and 65,699.90 tonnes were exported to India, increasing by
374.37% compared with 13,850 tonnes in the corresponding period of 2014. As for
the whole year's export of DAP in 2014, China exported 1.56 million tonnes of
DAP to India in total, accounting for 32% of China's total export volume of
DAP. (For details of China's DAP export in 2014, please refer to Chinese DAP
export rises in 2014 in issue 1502.)
Export of DAP & NPK to India in
March-April 2015
|
Supplier
|
Purchaser
|
Fertilizer
|
Volume, tonne
|
Time of arrival
|
|
Sabic
|
TATA Chemical Limited
|
DAP
|
33,000
|
4 March,2015
|
|
JPMC
|
IPL (Indian Potash Limited)
|
DAP
|
10,000
|
8 March, 2015
|
|
Koch
|
IPL
|
DAP
|
40,000
|
Mid-March 2015
|
|
Wengfu Group
|
CIL (Coal India Limited)
|
DAP
|
35,000
|
April
|
|
Aries
|
IPL
|
DAP
|
20,000
|
April
|
|
Wengfu Group
|
CIL
|
DAP
|
35,000
|
April
|
|
Dreymoor
|
TATA
|
DAP
|
60,000
|
April
|
|
Dreymoor
|
Kisan (Kisan Forum Pvt. Ltd.)/Indian
Farmers Fertilizer Cooperative Limited
|
DAP
|
50,000
|
April
|
|
N/A
|
Deepak (Deepak Fertilisers And
Petrochemicals Corp. Ltd.)
|
DAP
|
40,000
|
April
|
|
Fertisul
|
N/A
|
DAP
|
40,000
|
April
|
|
Yunnan Yuntianhua
|
Chambal (Chambal Fertilisers and
Chemicals Limited)
|
DAP
|
60,000
|
April
|
|
Yunnan Yuntianhua
|
Chambal/Zuari (Zuari fertilizers &
Chemicals Ltd.)
|
DAP
|
60,000
|
April
|
|
Total
|
--
|
--
|
483,000
|
--
|
Source: CCM
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