India Warns Global Fertilisers Suppliers Against Price Cartelisation

India on Wednesday warned global fertilisers suppliers against price cartelisation saying a steep rise in crop nutrients in recent times is unacceptable and consuming nation will look at the alternative if this is not checked.

Addressing the annual seminar of the Fertiliser Association of India (FAI), Chemicals and Fertilisers Minister Mansukh Mandaviya said India has already innovated alternate fertilisers like nano liquid urea and nano liquid Di-ammonium Phosphate (DAP) as part of its efforts to become self-sufficient.

The minister pointed out that global suppliers took advantage of the crisis in the global market during the Russia-Ukraine war and raised prices of phosphatic and phosphoric acid. He said global prices of DAP have increased to $590 per tonne from $450 in just 15 days.

"It's not good. This is not the time that we do not work together," he said and asked global suppliers not to engage in price cartelisation. The minister said this is not in the interest of everyone.

India imports a large quantity of urea, DAP and other fertilisers to meet domestic demand.

Mandaviya told the CEOs and representatives of global companies that India has an important role to play for its own as well as the food security of the world.

He said the global companies would lose long-term business in their pursuit of trying to take advantage of the short-term supply crisis by raising prices.

"Jis pedh ke branch par hum baithte hain, yeh branch ko katne se tree ke branch bhi tootte hai aur aap bhi neeche girate ho (we do not cut the branch of a tree on which we sit, or else we will also fall)," Mandaviya quipped.

The minister asserted that he was fully aware of the demand-supply situation of the entire world.

Mandaviya said global price cartelisation is encouraging India to look for alternative fertilisers.

"If global companies engage in price cartelisation, we have (also) found out the solution. Why we have gone to nano urea and nano DAP. We have 2 lakh Kisan Samriddhi Kendras through which we are educating farmers about alternate fertilisers," he said.

The minister told global suppliers do not think that India has no other option but to purchase fertilisers at high rates.

Mandaviya reminded the global companies that Indian companies did not raise prices of medicines and vaccines during the COVID-19 pandemic and supplied them to more than 150 countries.

"Issue is cartelisation. The issue is that there should be no situation-based pricing. Where you will get such a big market," he told global companies.

Mandaviya suggested them to have a long-term business in India and there should be no price fluctuation.

If global price cartelisation continues, India will extensively promote alternate fertilisers, he warned. 'This is not in the interest of anyone'.

The minister highlighted that the demand for nano-liquid urea is rising.

"We want long-term friendship. We want long-term cooperation," he said.

According to FAI, India produced 28.5 million tonnes of urea and imported 6-7 million tonnes last fiscal. In DAP, the domestic output is around 4 million tonnes while import is about 6 million tonnes.

Fertiliser Association of India (FAI) Chairman N Suresh Krishnan said the global prices of DAP have risen to $595 per tonne from $440 per tonne in July this year. DAP was priced at $924 per tonne in April 2022.

The phosphoric acid prices declined from $1,530 per tonne in April 2022 to $970 per tonne in July 2023 and again rose to $985 per tonne in October 2023.

Ammonia prices have shown a similar trend which was $1,530 per tonne in April 2022, went down to $285 in July 2023 and have again increased to $575 in October 2023.