Rising input costs are creating challenges for manufacturing DAP, said by GSFC
Gujarat State Fertilizers and Chemicals Ltd (GSFC), a Gujarat state government-owned organization, currently operates two DAP manufacturing facilities in Gujarat — one in Vadodara and another in Jamnagar — with a combined capacity of 6 lakh tonnes.
Rising costs of Inputs
Sulphuric acid is the major ingredient used in the manufacturing of DAP which after reacting with rock phosphate leads to the production of phosphoric acid. Phosphoric acid in turn reacts with ammonia and finally produce DAP.
The prices of sulphuric acid and phosphoric acid have increased by 150% year-on-year. In response, GSFC CFO S.K. Bajpai stated that it is not economically viable for the organization to manufacture DAP amid the current rise in expenditure
S.K. Bajpai said that the organization is hopeful the government will take the rise in input prices into account and provide relief by revising the subsidy, which is due from October. Bajpai shared this with the organization’s investors.
