DAP imports remain loss-making, despite increased NBS rates for FY2026 kharif and continuation of special package for DAP, with international prices touching $800/MT levels. The availability issues for DAP are expected to continue, resulting in many farmers moving to other grades of NPKs. Further, outages in key urea production facilities have also led to moderation in inventory levels of the fertilizer industry.

•        NPK sales volumes grew by 34% in Q1 FY2026, with healthy reservoir levels and a timely monsoon. Urea witnessed healthy growth, while DAP witnessed decline owing to availability challenges. Going forward, volume growth is expected to be 1-3%, in line with long-term trends
•         Urea inventory levels moderated recently because of production outages at key manufacturing facilities. DAP availability continues to be a challenge. Many farmers have been switching to different grades of NPKs such as MOP, NP20, etc.