# DAP subsidy shift to curb import costs

> Government adjusts DAP subsidies to boost local production as sulphur prices rise
- Title: DAP subsidy shift to curb import costs · The Economic Times
- Summary: Government adjusts DAP subsidies to boost local production as sulphur prices rise Differential subsidies for DAP will vary based on production route to…
- Keywords: differential subsidies, dap production, sulphur prices, nutrient based subsidy, rabi season, india fertiliser, rock phosphate, phosphoric acid, dap imports, DAP, subsidy, shift
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/indl-goods/svs/chem-/-fertilisers/sulphur-prices-surge-govt-plans-differential-subsidies-for-dap-production/articleshow/134418969.cms
- Author: Shambhavi Anand
- Published: 2026-09-22T18:34:00+00:00
- Read time: 1 min
- Topics: differential subsidies, dap production, sulphur prices, nutrient based subsidy, rabi season, india fertiliser, rock phosphate, phosphoric acid, dap imports
## DAP subsidy changes coming
Government plans differential subsidies for di-ammonium phosphate under Nutrient Based Subsidy scheme to encourage local production

> There can be three rates for the same product
## Sulphur prices driving change
Rising sulphur costs make domestic DAP production more expensive than imports
## Three production routes
Indian manufacturers can process rock phosphate into phosphoric acid or import phosphoric acid directly for DAP
## Subsidy differences
Subsidy rates will vary based on whether DAP is made from imported rock phosphate, phosphoric acid, or imported finished DAP
## Cost structure impact
Margins are higher when DAP is produced using rock phosphate, so government wants companies to pass savings to farmers
## Key takeaway

Differential subsidies for DAP will vary based on production route to reduce import reliance