Fertilizers Prices

Despite high demand in rabi09 sowing season, urea prices fell to Rs 744 per 50kg
bag in October, 2008 after touching a record high of Rs 790 per 50kg bag in
September 2008. This decline is a direct impact of fall in the international urea
prices. Surprisingly, despite a downtrend in DAP price in international market,
domestic prices did not see a correction, probably due to the presence of stocks at
old (higher) prices (see Figure 2.5 & 2.6). Admittedly, a part of decline in
international prices will be offset due to depreciation of rupee, but some benefits
of falling international prices need to be passed on to farmers as well.
The decline in international
fertilizers prices is attributed
to slowdown in demand ,
decrease in fuel prices and
fears of global recession.
Other factors include, (1)
falling food prices8 and (2)
resumption of fertilizer
exports from China ,
previously reduced owing to
high export taxes. In
addition, fall in fertilizer
prices also reflected by the
slowing global credit crunch
that has slowed down the
entire fertilizer supply chain,