India’s Department of Fertilizers (DOF) has approved additional financial support for DAP importers and producers. Following this announcement, parties have withdrawn their requests to cancel Russian DAP contracts. The support measures include compensation for import and production costs, reimbursement of the Goods and Services Tax (GST) included in the Maximum Retail Price (MRP), and a guaranteed 4% margin on the net MRP.

In addition to the base subsidy of Rs 27,799/t, the DOF will provide an extra Rs 3,500/t to cover costs such as port handling, packaging, marketing, and distribution, bringing the total subsidy for DAP to Rs 31,299/t (approximately $364.64/t).

The DOF will also compensate importers for losses stemming from international price fluctuations and refund the GST embedded in the MRP. All payments will be made after the end of the Kharif season (April–September).