INDIA DIAMMONIUM PHOSPHATE (DAP) MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

India Diammonium Phosphate (DAP) Market Size and Forecast – 2025-2032

India diammonium phosphate (DAP) market is estimated to be valued at USD 481.6 Mn in 2025 and is expected to reach USD 698.5 Mn by 2032, exhibiting a compound annual growth rate (CAGR) of 5.5% from 2025 to 2032.

Key Takeaways of the India Diammonium Phosphate (DAP) Market:

• The industrial grade segment is projected to account for 65.3% of the market share in 2025
• The granular segment is expected to lead the market, holding a 67.8% share in 2025
• The fire retardant segment is anticipated to command 57.8% of the market share in 2025

Market Overview:

Increasing usage of DAP as a fertilizer for various crops such as rice, wheat, vegetables, and other horticultural crops is expected to continue driving the demand for DAP in the country. DAP being a readily soluble source of phosphorus and nitrogen makes it a preferred fertilizer type. Further, government initiatives to promote balanced use of fertilizers along with growth in agricultural production are projected to boost India Diammonium Phosphate (DAP) market in the coming years. Ongoing farmer awareness programs regarding soil health management and the importance of macro and micronutrients for higher crop yields are also contributing favorably to market expansion. For instance, the "Soil Health Card Scheme" launched by the Government of India provides farmers with soil health reports that recommend appropriate nutrient management practices. This initiative aims to enhance productivity by encouraging the balanced use of fertilizers like Diammonium Phosphate (DAP) and other essential nutrients, thereby boosting agricultural sustainability and market growth.

Segmental Insights

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Type Insights - Strong Demand for Industrial-Grade DAP

In terms of type, the industrial grade segment is estimated to contribute 65.3% share of the market in 2025, owing to its widespread use across various core industries. DAP is a commonly used fertilizer for agriculture and also finds applications in many industrial verticals such as manufacturing, chemicals, and mining. The growth of these industries in India has been driving the demand for industrial-grade DAP. Manufacturing has been a primary growth engine for the Indian economy. Expansion of sectors like automobiles, infrastructure, machinery, etc. has increased the requirement for industrial materials which use DAP as a key input. 

Form Insights – Granular Dominates as the Preferred Formulation for Enhanced Efficiency

In terms of form, the granular segment is expected to dominate the market with 67.8% share in 2025, owing to its distinct advantages over powdered DAP. Being the preferred formulation, granular DAP accounts for the bulk of the overall demand. Unlike powdered DAP which is messy and difficult to handle, granules offer improved flow properties and uniformity of application. Granular DAP is easy to transport, store, and apply across different terrain including hilly and uneven fields. The graded granule size ensures minimal wastage and more precision during soil application through common fertilizer broadcasting machines.

Application Insights – Fire Retardant Application Leads as Demand for Fire Safety Solutions Rises

In terms of application, the fire retardant segment is expected to dominate the market with 57.8% share in 2025. This growth is attributed to the increasing demand for fire safety solutions across industries such as construction, textiles, and forestry. DAP, with its fire-retardant properties, is used extensively in flameproofing materials, wildfire control, and as a key ingredient in protective coatings.

Market Players, Key Devlopment, and Competitive Intelligence

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Key Developments:

• In January 2021, the OCP Group, a leading global producer of phosphate-based fertilizers, partnered with Emirati agricultural company Al Dahra Agricultural Co. to establish a successful joint venture in Romania and Southeast Europe. This newly formed entity was rebranded as South East Europe Fertilizer Company (SEEFCO S.A.), focusing on delivering high-quality fertilizer solutions to support agricultural growth in the region.

Top Strategies Followed by India Diammonium Phosphate (DAP) Market Players

• Established Players: Leading DAP producers focus extensively on research and development to deliver high-performance, innovative products. Companies like Coromandel International and Zuari Agro Chemicals invest over 5% of annual revenues in R&D. They conduct trials to improve nutrient efficiency and develop customized fertilizer blends as per soil and crop requirements. These players also form strategic alliances with major agrichemical companies and OEMs.
  • For instance, Yara International collaborates with Coromandel to market and distribute newest nutrients. Such partnerships help strengthen distribution networks and product branding.
  • Mid-Level Players: Mid-sized fertilizer manufacturers pursue cost-effective strategies to gain market share. They focus on producing good quality DAP at competitive prices targeting price-sensitive farmers. Companies engage in technical collaborations to boost production volumes and quality. For example, Deepak Fertilizers has partnered with CF Industries to bolster its DAP manufacturing process. Some mid-level players have also tied up with cooperatives and local dealers to promote products across various regions in India.
• Small-Scale Players: Emerging smaller companies look at niche markets with unique product offerings. Many targets organic farmers through naturally-derived or single-nutrient fertilizers. Others have adopted advanced technologies like polymer-coating and micro-encapsulation to improve nutrient use efficiency of DAP. Some local manufacturers collaborate with startups on innovative fertilizer delivery mechanisms like drone-based applications.

Emerging Startups - India Diammonium Phosphate (DAP) Industry Ecosystem

• Innovative Technologies: Several Indian agritech startups are developing smart soil sensors and AI-based advisory platforms. For instance, Taranis uses spectral imaging and machine learning to detect nutrient deficiencies in fields. Agriwise employs sensors, cloud, and Blockchain to help farmers optimize fertilizer usage. Such innovative technologies could significantly impact the diammonium phosphate (DAP) market by enabling precision nutrient applications.
• Sustainable Solutions: Startups like Clover and Iny land are focusing on organic and natural alternatives to DAP. Clover produces nano-fertilizers from food waste that enrich soil health. Iny land recovers phosphorus from wastewater for use in fertilizers. Such eco-friendly innovations will support sustainable agriculture goals while contributing to the diammonium phosphate (DAP) market.
• Market Contribution: Some startups target niche segments like hydroponics, floriculture, and horticulture. Hydrogenic collaborates with growers to offer tailor-made nutrient solutions. Many partners with established DAP makers and research bodies to refine products.

Market Report Scope

Market Dynamics

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India Diammonium Phosphate (DAP) Market Growth Factors

Increasing demand for high-yielding fertilizers in agriculture

The agricultural sector forms the backbone of India's economy with over 58% of the rural households depending primarily on agriculture as their principal means of livelihood. According to the Ministry of Agriculture & Farmers Welfare, Government of India) In order to boost agricultural production and improve farm yields, there has been growing utilization of high-yielding fertilizers such as DAP (Diammonium Phosphate) across the country. DAP is a key source of phosphorus and nitrogen for crops and its balanced nutritional composition makes it highly effective in boosting crop yields when used along with urea or other nitrogen-based fertilizers. Over the years, the varieties of crops cultivated in India have changed significantly with farmers gradually shifting from traditional crops to high-yielding hybrid varieties and other commercial crops in order to boost incomes.

India Diammonium Phosphate (DAP) Market Challenge - Rising costs of imports

One of the key challenges faced by the India Diammonium Phosphate (DAP) market is the rising costs of imports. However, global prices of DAP have risen sharply in recent times primarily due to supply constraints from major exporting countries like China, Egypt, Morocco, and Jordan. The conflict between Russia and Ukraine has further exacerbated supply disruptions. Both countries are major exporters of fertilizers, ammonia, and raw materials used in the production of DAP. Higher global prices have significantly increased the import bill for Indian fertilizer companies and traders. The rising import costs are putting pressure on profit margins and may force players to pass on some of these increased costs to farmers through higher DAP prices.

India Diammonium Phosphate (DAP) Market Opportunity - Increasing Investments in R&D for Alternative Fertilizers

One opportunity for the India Diammonium Phosphate (DAP) market is to increase investments in research and development for alternative fertilizers that can help reduce dependency on DAP imports over the long run. While DAP remains the most widely used phosphate fertilizer, alternatives such as mono-ammonium phosphate (MAP) and nano fertilizer are gaining traction globally and in India. Increased R&D can help develop fertilizer solutions that perform at par or better than DAP in terms of crop yield and nutrition, while also having easier availability within the country. This will provide Indian farmers with greater choice and self-reliance. 

Analyst Opinion (Expert Opinion)

• The Diammonium Phosphate (DAP) market in India has been experiencing robust growth, primarily driven by the increasing demand for fertilizers in the agriculture sector. With India being one of the largest consumers of DAP globally, the market is projected to expand due to the government's initiatives aimed at enhancing agricultural productivity and food security. The introduction of schemes like the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) has further incentivized farmers to adopt chemical fertilizers, boosting DAP consumption.
• In 2023, the market witnessed a significant increase in DAP imports due to fluctuating domestic production and rising agricultural input costs. The ongoing push towards sustainable agriculture and the adoption of advanced farming techniques are expected to drive the demand for high-quality fertilizers like DAP.
• The Indian Diammonium Phosphate (DAP) market is poised for sustained growth, driven by favorable policies and increasing awareness of soil health among farmers. However, volatility in global phosphate prices and supply chain disruptions could pose challenges. To mitigate these risks, stakeholders should consider diversifying their sources of DAP and investing in domestic production capabilities. Overall, the long-term outlook remains positive, with opportunities for innovation in fertilizer formulations to meet evolving agricultural needs.

Market Segmentation

•  Type Insights (Revenue, USD Mn, 2020 - 2032)
• • Industrial Grade
  • Food Grade
•  Form Insights (Revenue, USD Mn, 2020 - 2032)
• • Granular
  • Powder
•  Application Insights (Revenue, USD Mn, 2020 - 2032)
• • Fire Retardant
  • Food
  • Fertilizer
  • Others
• Key Players Insights
  • Deepak Fertilisers and Petrochemicals Corporation
  • Zuari Agro Chemicals
  • Coromandel International
  • Chambal Fertilisers and Chemicals
  • Nagarjuna Fertilizers and Chemicals
  • Gujarat State Fertilizers and Chemicals (GSFC)
  • Mangalore Chemicals and Fertilizers
  • Tata Chemicals
  • Kisan Fertilizers
  • Godavari Fertilizers and Chemicals
  • Paradeep Phosphates
  • Acron Chemicals