Indorama raises MRP of DAP fertilizers
Indian fertilizer importer Indorama has raised the maximum retail price (MRP) of DAP in the domestic market to 29,000 rupees/t ($400/t) from a previous Rs28,000/t.
The move is seen as a counter to the weakening domestic currency against the US dollar, and to bolster profit margins before demand for DAP dries up around October-November for the current season.
Allowing for an exchange rate of Rs72.54 to the US dollar, the new MRP reflects a theoretical profit margin around Rs1,400-1,600/t when importing in a $426-428/t cfr range in India.
While the new margin appears more lucrative, it is unlikely that importers will boost purchases considerably in the next few weeks. India purchases DAP for the rabi agricultural season from July to September, with the product typically arrives at the end of October to early November.
Fellow Indian importers IPL and Iffco had recently raised the MRP to Rs28,000/t.
This is the sixth hike in the MRP this year from around Rs21,720/t at the start of this year.
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