- LATEST
- WEBSTORY
- TRENDING
BUSINESS
Rupee plunge to push up prices of non-urea fertilisers
Updated : Mar 19, 2018, 03:05 AM IST
TRENDING NOW
)
After breakup with Malaika Arora, Arjun Kapoor gets special marriage advice from Abhishek Bachchan: 'When you get a call from...'
)
Mukesh Ambani brings former star cricketer's brand to India, to be sold at Rs...
)
Zoho founder Sridhar Vembu highlights smart, well-educated Indian-Americans shifting to finance: 'Making money on money...'
)
Meet Yasmeen Premji and Rishad Premji, wife and son of Azim Premji, and the backbones of Wipro
)
Infosys co-founder Narayana Murthy urges businesses to treat employees as humans, reduce gap between...
)
Deepika Padukone opens up on returning to work after motherhood: "figuring it out without guilt"
)
Meet man, IIT Roorkee alumnus, who cracked UPSC exam to become IAS, served as DM Lucknow, now suspended due to...
)
Jeet Adani joins Shark Tank India Season 4, Anupam Mittal says 'you will take all the...'
)
'Hindi hi bolenge': Man refuses to speak Marathi at D-Mart in Pune, viral video sparks heated debate
)
DNA Verified: Are banks to work for 5 days a week from April 1? Know truth here
)
Another masterstroke by Mukesh Ambani as Reliance Industries earns Rs 6850 crore by selling crude oil to..., it has Russia link as...
)
Meet IIT-JEE topper, who got 100 percentile, but did not take admission in IIT due to...
)
Meet man who topped IIT-JEE exam, was hired for Rs 100 crore, fired soon after, now making headlines for...
)
Bodoland Lottery Sambad Result Today March 21, 2025 Live Updates: Assam State Friday Lucky Draw lottery Results DECLARED
)
Delhi-Mumbai Expressway Update: Surat-Maharashtra stretch delayed, completion pushed to...
Non-urea fertilisers are set to see a massive hike in prices in the next 2-3 months as the over 10% rupee fall is hitting the companies concerned hard.
Satish Chander, chairman of Fertiliser Corporation of India said a price rise is inevitable. By when? It is a difficult call to take, he said.
Non-urea fertilisers, such as di-ammonium phosphate (DAP) and muriate of potash (MoP) which are based on a combination of nutrients such as phosphorus, nitrogen and potassium, and their raw materials are largely imported in India. Out of these, DAP is consumed the most – it has a 25% share of the overall fertiliser market.
“With the rupee coming down to almost Rs 60 against the dollar, companies importing DAP are seeing their procurement costs soar by almost Rs 2,000 per tonne,” said Rakesh Kapur, joint MD and director of finance at IFFCO, India’s biggest fertiliser firm.
He said IFFCO, which leads the fertiliser industry in fixing prices, has not taken any decision so far, but a loss of Rs 2,000 per tonne cannot be sustained for long.
In the first week of April, the government asked fertiliser companies not to effect unreasonable price hikes lest they risk losing their subsidy payments.
This led to a cut in the price of DAP from Rs 24,000 per tonne to Rs 22,500 per tonne.
“The companies are now looking to revise the price again by Rs 1,500 per tonne back to the pre-April level to offset some part of the loss at least,” said an industry insider.
This will take some time as a lot of factors have to be considered before a decision is taken.
With every Rs 1 drop against the dollar, DAP price increases by Rs 550 per tonne. With the rupee having fallen by over Rs 4 now, the loss is actually more than Rs 2,000 per tonne.
“The situation is more or less like last year when the rupee fell from Rs 51 to Rs 55 and then it was passed on. But this time, the industry is stuck due to government’s hard stand on the companies regarding unreasonable price hikes,” said an analyst with a domestic brokerage.
