# DAP subsidy cut by Rs 15,792 a ton; low global prices to save govt bill - Rural Voice is a bilingual news platform which is filling the information gap by providing in-depth coverage of agricultural policies, technological advancements, cooperatives, public sector and rural development. It offers analytical content tailored for

> 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.

- Date: 2023-05-22 · published 2023-05-22T12:00:00.000Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/5365-dap-subsidy-cut-by-rs-15-792-a-ton-low-global-prices-to-save-govt-bill-rural
- Commodities: [DAP](https://feedsoft.ai/c/DAP.md)

## Why it matters

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.

## Read by commodity

- DAP: neutral

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DAP | 2023-05-26 | 5 | -19.2% | -6.6 | 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. |
| DAP | 2023-05-29 | 5 | -19.2% | -7.6 | India's lower Kharif DAP subsidy and low global prices weaken the import demand and price support from the largest DAP buyer. |
| DAP | 2023-05-26 | 1 | -11.5% | -5.6 | 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. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DAP | 2021-05-20 | [CCEA approves increased prices for Phosphatic and Potassic (P&K) fertilizers vide notification dated 20.5.2021 to be rolled over for the whole year 2021-22](https://feedsoft.ai/events/47024-ccea-approves-increased-prices-for-phosphatic-and-potassic-p-and-k-fertilizers.md) | +0.5% | +4.2% |
| DAP | 2026-01-28 | [Vaden criticized fertilizer ‘duopoly,’ but analysts point to other price factors \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/21374-vaden-criticized-fertilizer-duopoly-but-analysts-point-to-other-price-factors.md) | +0.4% | +1.3% |
| DAP | 2021-04-09 | [Govt asks companies not to hike non-urea fertilizer prices, look for alternative to expensive raw materials - Times of India](https://feedsoft.ai/events/47934-govt-asks-companies-not-to-hike-non-urea-fertilizer-prices-look-for-alternative.md) | +0.2% | +6.7% |
| DAP | 2021-04-09 | [Fertiliser  Prices News: Government Tells Fertiliser Companies Not To Raise Prices](https://feedsoft.ai/events/47929-fertiliser-prices-news-government-tells-fertiliser-companies-not-to-raise-prices.md) | +0.2% | +6.7% |
| DAP | 2024-12-04 | [Govt acted to boost domestic DAP supply amid disruptions: Anupriya Patel \| Agriculture - Business Standard](https://feedsoft.ai/events/27269-govt-acted-to-boost-domestic-dap-supply-amid-disruptions-anupriya-patel.md) | -0.4% | +2.0% |

## Sources

- eng.ruralvoice.in: https://eng.ruralvoice.in/national/dap-subsidy-cut-by-rs-15792-a-ton-low-global-prices-to-save-govt-bill.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.