Amid the West Asia crisis, the government has urged fertiliser companies to start buying finished fertilisers or their key raw materials on a collective basis rather than individually, a strategy that they have been following for urea for quite some time.
Sources said the idea behind the advice is that, because of the West Asia crisis, prices of all finished fertiliser products such as urea, ammonium phosphate (DAP), muriate of potash (MoP) and NPKS, or their key raw materials such as rock phosphate or phosphoric acid, ammonia, sulphur, etc, have risen by more than 50–60 per cent due to short supplies.
Buying jointly or collectively will help negotiate better rates and deals. Traders said a beginning in this regard was made last week when IPL issued a tender to import 1.6 million tonnes of DAP and TSP (triple super phosphate) on behalf of the industry.
