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Russian firms have ceased providing fertiliser reminiscent of di-ammonium phosphate (DAP) to India at discounted costs on account of tightening international provides after changing into the largest suppliers to the nation final yr, three business sources advised Reuters.

The transfer in August by Russian firms to supply fertilisers at market costs might improve India’s import prices and subsidy burden amid a rally in international costs, as a prime exporter, China, tries to curtail abroad gross sales.

“There are no discounts,” mentioned a New Delhi-based senior business official concerned within the negotiations with abroad suppliers. “Russian companies are offering fertilisers at the market prices,” the official mentioned, declining to be named as a result of sensitivity of the matter.

India’s fertiliser imports from Russia surged 246% to a document 4.35 million metric tons within the 2022/23 monetary yr ended on March 31 as suppliers gave reductions to the worldwide market worth for DAP, urea and NPK fertilisers.

Russia’s aggressive promoting final yr eroded the Indian market share of different fertiliser exporters together with China, Egypt, Jordan, and the United Arab Emirates.

“Russian companies were offering DAP at discounts of as high as $80 (per ton). However, now they are not offering discounts of even $5,” mentioned one other Indian firm official.

The present worth of Russian DAP is roughly $570 per ton on a price and freight (CFR) foundation for Indian consumers, which is similar worth provided to different Asian consumers, mentioned a Russian business official.

Global fertiliser costs have been surging over the previous two months, making it difficult for Indian firms to build up shares for the upcoming winter season when demand for DAP rises for the wheat crop, mentioned an official from a Mumbai-based fertiliser firm.

In July, international suppliers have been providing urea at roughly $300 per ton on a CFR foundation, however at the moment are quoting $400 per ton, he mentioned. DAP costs have been round $440 per ton in July, he added.