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Erratic monsoon sees DAP sales dip

Our Bureau

NEW DELHI, Aug. 10

THE erratic behavior of the monsoon is likely to reduce consumption of di-ammonium phosphate (DAP) to around 27 lakh tonnes in kharif 2000, as against 32 l.t in kharif 1999, according to the Indian Farmers' Fertiliser Cooperative Ltd (Iffco).

DAP sales during April-July, this year, have amounted to just 10.2 l.t, a 32 per cent drop over the previous year's corresponding sales of 15 l.t. ``Sales seem to have been adversely affected due to erratic behavior of the monsoon and also the budgetary price hike,'' an Iffco release stated here today.

The release has pointed out the monsoon during the current kharif season started well in time, but disappeared after covering only a part of the country. It revived after about a fortnight and covered almost the entire country. But since then, there has again been no significant rains for the last 2-3 weeks, adversely affecting sowing and fertiliser consumption.

Iffco has noted that the lower DAP consumption does not reflect any supply shortage as much as reduced demand. The opening stocks as on October 1, 2000 (the beginning of the rabi cropping season) will be 12 l.t. Production during rabi 2000-01 is anticipa ted at 32 l.t.

``Even assuming that there will be no imports of DAP in the coming rabi season, availability in the market will be in the order of 44 l.t, which is sufficient to take care of the requirements,'' the release noted, while adding that the impression being c reated in the market regarding DAP shortage in rabi 2000-01 ``is absolutely baseless and unfounded.''