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India's Department of Fertilizers notified new Nutrient Based Subsidy rates on May 18, 2023, after a cabinet decision on May 17. The subsidy on DAP for the Kharif season (April to September 2023) is Rs 15,792 per tonne lower than for the Rabi season, leaving DAP at Rs 32,641 per tonne.
A lower government subsidy reduces the state's fertilizer bill and signals that global phosphate prices have eased. Net DAP costs to Indian farmers and importers depend on how much of the subsidy cut is passed through, so the direct price effect on phosphate is uncertain.
eng.ruralvoice.inAvishek RajaMay 22, 2023After 29 past neutral policy events, DAP moved a median +0.2% over 5 sessions (55% higher; middle half -0.4% to +1.3%), and +1.9% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
India's cut in the Kharif DAP subsidy by Rs 15,792/t, announced May 17-18, lowers the support for the world's largest DAP importer and points to weaker import demand and lower price expectations, which fits the sharp drop in the week to May 26.
India's lower Kharif DAP subsidy and low global prices weaken the import demand and price support from the largest DAP buyer.
India's cut in the Kharif DAP subsidy by Rs 15,792/t, announced May 17-18, lowers the price support for the largest DAP importer and could weaken import demand and sentiment, though it came a few days before the drop.
