Prices of dai ammonium phosphate (DAP) has decline by Rs 200 per 50-kilogram bag due to its over-supply against the low demand in the local market, market sources said. They said as the Kharif season was about to end and sowing of Rabi crops would start during the next two months.
The local market witnessed a decline in DAP demand, hitting its prices, showing a cut of Rs 150-200 per bag. Recently, the DAP prices reached Rs 1,600-1,650 per 50-kilogram bag in the domestic market as compared to Rs 1,750-1,800 per bag, said a leading importer.
However, the market expected further decline in the DAP prices in the next week by again reaching Rs 1,500 per 50-kilogram bag. "We (importers) have also cut our prices by Rs 15 per bag on Wednesday ahead of low demand in the market due to off season," he added.
In August, the importers placed big orders for DAP import to meet the local demand, but the unplanned import of commodity resulted in over-supply in the domestic market, he said. Some four ships loaded with over 135,000 tonnes of DAP berthed at Karachi port during the last two weeks, while over 100,000 tonnes would reach Karachi next week, the importers said.
They said the huge import of the DAP was the major reason behind the current decline in the DAP prices. On the other hand, farmers are still unhappy with recent decline in the DAP prices, saying that the government should take immediate steps to bring down its prices at the previous level of Rs 1,300 per 50-kilogram bag.