India Diammonium Phosphate (DAP) market overview
Diammonium phosphate (DAP) is a slow-release compound fertilizer with an ideal balance of nitrogen and phosphorus nutrients. It is manufactured through the reaction of phosphoric acid and ammonia in aqueous solution. DAP is the most commonly used phosphate fertilizer globally as it is less water soluble than other available compound fertilizers. It provides plants with vital nutrients like nitrogen and phosphorus essential for growth. High crop yields, diverse crop varieties, and agriculture being one of the leading industries in India have ensured steady demand growth for DAP fertilizers over the years.
The Diammonium Phosphate (DAP) Market in India is estimated to be US$ 481.6 million in 2025 and is projected to reach US$ 698.5 million by 2032, registering a compound annual growth rate (CAGR) of 5.5% from 2025 to 2032.
Key Takeaways
Key players operating in the India DAP market are IFFCO, Coromandel International, Paradeep Phosphates Limited, RCF Limited.
The key opportunities in the India Diammonium phosphate (DAP) Market Demand include investment in rural infrastructure, crop diversification, export opportunities, and digital agriculture initiatives by the government. With India aiming to increase agriculture exports to $60 billion by 2027, there is significant potential to cater to the rising global demand for DAP fertilizers.
Major players in the India DAP market are looking to expand globally through strategic partnerships and acquisitions. Leading players are setting up manufacturing facilities outside India to capitalize on lucrative opportunities in countries like Africa and Latin America with large untapped agriculture markets.
Market Drivers
The primary driver for the India DAP market is the increasing demand from the agriculture sector. With around 60% of the population depending on agriculture for livelihood, the government has been undertaking several initiatives to boost agriculture production through intensive farming practices. DAP plays a vital role in increasing crop yields.
Market Restrain
Volatility in raw material prices hampers price stability of DAP in India. As DAP manufacturing is a capital-intensive process, fluctuations in prices of ammonia and phosphoric acid pose major challenges. Dependence on imports for certain raw materials also makes the industry vulnerable to foreign trade changes and geopolitical risks.
Segment Analysis
The Indian DAP market has two segments - agricultural grade DAP and industrial grade DAP. The agricultural grade DAP segment accounts for around 80% market share as it is widely used as fertilizer for various crops like wheat, rice, sugarcane etc. in India. Agricultural grade DAP is dominating the market as India is an agricultural based economy and DAP is one the major fertilizers used. It ensures higher productivity and quality crop yield. The industrial grade DAP segment has around 20% share which is used in manufacturing of water treatment chemicals, for industrial purposes.
Global Analysis
Regionally, North India dominates the India DAP market with over 35% share owing to extensive cultivation activities in states like Punjab, Haryana and Uttar Pradesh. West and South India are other major regions together accounting for about 40% share due to sizeable agricultural lands. East India has around 25% share and is fastest growing region led by increased usage of fertilizers in states like Bihar and Odisha for high crop production. Globally, India is one of the largest producers and consumers of DAP fertilizers globally and thus has significant dominance in South Asian markets by exporting products.
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