Indian farmers are likely to bear the burden of the ongoing tariff war between the United States and India as the cost of fertilisers has soared up amid the tariff row between the two countries. Cost on non-urea complexes such as di-ammonium phosphate (DAP) and muriate of potash (MoP) have risen over the past few months due to an increase in the international prices of raw materials. The falling rupee has added to the cost of imports of these fertilisers, reported Business Line. Compared with the corresponding period last year, the prices of DAP and MoP are up 24-27 percent. Industry experts believe that the Centre's recent move to hike safeguard duty on imports of phosphoric acid from the US to 20 percent from 5 percent may have a reverse impact. India imports around 2.4 million tonnes of phosphoric acid every year, of which imports from the US are estimated to be 2 lakh tonnes. "The higher duty on US products may push up the prices of phosphoric acid from other origins,” an industry source told the paper. Currently, phosphoric acid prices are around $730 a tonne, which has risen $150 from a year ago. The farmers have also failed to benefit from government's Nutrient Based Subsidy (NBS) schemes due to the increase in prices on input materials. "We don’t have any option, but to pass on the price increase to the farmers," a source told the paper. The fertiliser-makers, however, have revised the prices three to four times over the past six months owing to the rising global prices of phosphoric acid, the main ingredient. The fertiliser industry fears that the rise in prices of the decontrolled fertilisers may result in a decline in demand as the farmers are already grappling with low farm-product prices. Agriculture expert Devinder Sharma told the paper the rise in prices may work in favour of India as it would offer a chance to move away from chemical fertilisers. "There is a need to take a re-look at their use," Sharma said, adding that recent studies in Andhra Pradesh prove that there is no co-relation between rise in yields and fertiliser use. First Published on Jun 26, 2018 03:42 pm
Rising chemical fertiliser prices could prompt Indian farmers to seek organic alternatives, according to agriculture expert Devinder Sharma. The weak rupee, coupled with the tariff war between India and the US, has seen phosphoric acid prices rise to $730 a tonne, up $150 on the previous year, and have pushed up costs for di-ammonium phosphate (DAP) and muriate of potash (MOP) 24-27%. “Farmers are not going to be able to afford these prices,” Sharma said.