India raises fertilizer subsidies to boost global phosphate market sentiment

  This week, India announced to increase the fertilizer subsidies to boost sentiment in the global phosphate market. India has increased the subsidy with more than doubled for DAP and lowered its domestic selling price, alleviating the pressure on farmers, which will boost the import demand.

   At the same time, due to the Covid-19 crisis, buyers in India are facing logistical challenges, rising sea freight prices and causing port disruptions. After the announcement of the subsidy, the import demand increased in Pakistan, and the CFR price rose by US$15/ton to US$583/ton.

   Prices from Brazil have also risen sharply, with the mid-range sales CFR price rising from $620/ton last week to the high-end price of $645/ton this week. However, no transaction was made at this price. It is reported that there are several sales orders at a price of US$630-640/ton CFR.

   There is strong demand in the east of Suez, and companies are shipping products actively, and the price of MAP in Brazil is rising strongly.