Tata Chemicals working on alternatives to DAP
NDTVprofit.com — October 23, 2007

Indian farmers are facing acute shortage of DAP (Di Ammonium Phosphate) because the Indian fertiliser companies have stopped importing DAP with government not subsidising it anymore.

Tata Chemicals found this as an opportunity by launching customised fertilizers based on the needs of specific crops and soils.

Government's decision to change policy on subsidising certain fertiliser categories like DAP has caused supply-demand gap in the DAP market. DAP is a critical fertiliser that Indian farmers depend upon and a short supply has disrupted the plans of many Indian farmers.

While farmers continue to believe that growing crops without DAP will be tough but for companies like Tata Chemicals this is an opportunity to introduce customised fertilizers.

The company is working closely with farmers to introduce new fertiliser types and is planning to set up a new plant at Babrala in Uttar Pradesh.

Homi Khusrokhan, MD, Tata Chemicals, said, "In the past we used to import DAP but now the freight costs have gone up. Last year we made losses in importing DAP but this year we are introducing alternative solutions to DAP."

The tight supply position of DAP has given Tata Chemicals an opportunity to innovate and its strategy of enlarging its fertiliser products portfolio may work for both the farmers and the company.