India DAP sales strong at start of June

Sales under the Direct Benefit Transfer (DBT) system were at 350,000t as of 9 June, latest provisional data show. DAP sales reached 646,000t in June last year.

Sales began strongly in this year's kharif season, which runs from April-September (see chart). April sales rose by 72pc on the year to 297,000t. And DAP sales accelerated last month, hitting 678,000t, more than double the quantity sold in May 2019.

DAP DBT sales in the October-March rabi season hit 6.53mn t, Argus calculates. This was up by 32pc from 4.96mn t a year earlier.

Solid agricultural fundamentals, a record winter wheat harvest and expectations of a steady monsoon in the third quarter have encouraged buying in recent months.

Import demand has risen accordingly, with over 1mn t of DAP scheduled to arrive in India this month, and at least 700,000t already lined up for July delivery. India imported 5.75mn t of DAP in 2019, latest annual trade data show.