The India DAP market is predominantly driven by the increasing demand for high-yield crop cultivation practices to cater to the rising food demand of the growing population. Diammonium phosphate or DAP is a fertilizer that provides both nitrogen and phosphorus to plants and is extensively used in India for crop production.
The Diammonium Phosphate (DAP) Market in India is estimated to be US$ 481.6 million in 2025 and is projected to reach US$ 698.5 million by 2032, registering a compound annual growth rate (CAGR) of 5.5% from 2025 to 2032.
India Diammonium phosphate (DAP) Market Demand is a highly soluble and balanced nitrogen and phosphorus fertilizer that enhances early crop development and growth. As India seeks to ensure food security through sustainable agricultural practices, DAP has emerged as a preferred nutrient source for various high-yielding crops like rice, wheat and maize. Its balanced NPK ratio and solubility make it ideal for broadcasting application on direct seeded and transplanted rice. DAP improves grain number and harvest index in rice and boosts winter crop yields.
Key Takeaways
Key players operating in the India DAP market are IFFCO, Coromandel International, KRIBHCO, and SMC.
The increasing cultivation of rice, wheat and other crops to meet the demands of rising population has been fueling the consumption of DAP in India.
Technological advancements like the development of new DAP grades and introduction of bio-coated DAP variants have improved the efficacy and sustained release of nutrients.
Market Trends
Growing focus on precision farming and fertigation is driving the adoption of water-soluble DAP variants. Leading players are launching novel formulations for foliar and drip irrigation application.
Rising organic and sustainable agriculture practices are augmenting the demand for coated and encapsulated DAP to optimize nutrient use efficiency. Players have introduced sulfur and urease-coated DAP to reduce nitrous oxide emissions and crop burns.
Market Opportunities
Increasing mechanization of smallholder farms presents an opportunity to promote the use of crop-specific DAP blends through customization.
Growth of high-value horticulture and floriculture industry to drive demand for specialty DAP grades tailored for vegetables, fruits and flower cultivation.
Impact of COVID-19 on India Diammonium Phosphate (DAP) market growth
The COVID-19 pandemic severely impacted the growth of India's Diammonium Phosphate (DAP) market in 2020. After the nationwide lockdown was imposed in late March, fertilizer manufacturing plants had to temporarily halt operations. This led to significant supply disruptions as domestic demands remained high during the sowing seasons. Farmers faced difficulties in accessing DAP for crop cultivation. Stocks with dealers also depleted quickly. The supply chain was disrupted due to limited transportation availability and cross-border trade restrictions.
Post-lockdown, the government classified fertilizers under essential commodities to restore supply. Manufacturers were allowed to operate with limited workforce while following safety protocols. However, labor shortages persisted due to migration of workers from cities to villages. Demand saw a marginal recovery in the rabi season of late 2020 as crops like wheat require DAP application. But overall usage decreased in 2020 compared to pre-COVID levels. The government also announced subsidies and easy credit to support farmers.
Moving ahead, the market is expected to see improved growth in 2021 supported by a bountiful monsoon and higher spending on agriculture. However, demand may remain low in Q1 due to lingering effects of the pandemic. Manufacturers need to focus on stockpiling, expanding production capacities and strengthen delivery infrastructure to cater rising needs. Digital technology can help overcome labor issues and improve supply chain efficiency. Strong government support through policy reforms will be crucial for the DAP market to regain momentum after the pandemic-induced slowdown.
India's DAP consumption is majorly concentrated in the northern states like Uttar Pradesh, Punjab and Haryana due to their large agricultural output. These fertile regions contribute over 35% to the country's total DAP usage. The southern states like Andhra Pradesh and Telangana are also emerging as key markets led by increased crop diversification.
Among regions, East and Northeast India have shown fastest growth in DAP demand in recent years on the back of various government initiatives to boost utilization of fertilizers. States such as Bihar, West Bengal and Assam have seen rising applicaton of DAP for crops beyond rice to vegetables, maize and fruits which require more nutrients. Supportive soil characteristics and expansion of irrigation facilities have supported usage of DAP as a supplemental nutrient source. The demand is expected to further rise across East and Northeast India going forward.
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