Rising Sulphur Prices: DAP, SSP & India’s Fertiliser Supply

Subject: GS 03: Economy

Context: Rising sulphur prices are creating challenges for the availability of Di-Ammonium Phosphate (DAP), Single Super Phosphate (SSP), and other complex fertilisers.

• Landed sulphur prices in India have risen to around $1,050–1,100 per tonne, more than tripling over the past year.

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About Sulphur

• Sulphur is a non-metallic chemical element (S) and an essential plant nutrient required for protein synthesis and healthy plant growth. 
• Common Uses of Sulphur:
  • Fertilisers: Used to produce sulphuric acid, an important input for phosphatic fertilisers.
  • Sulphuric Acid: Used in the production of phosphoric acid and various industrial chemicals.
  • Rubber Industry: Used in vulcanisation of rubber.
  • Pesticides: Used in some fungicides and pesticides.
  • Pharmaceuticals: Used in the production of certain medicines and pharmaceutical compounds.
• Sources Of Global Sulphur
  • Direct Mining: Only around 10% of global sulphur output is directly mined.
  • Petroleum Oil Refining: Around 56% of sulphur comes as a byproduct of petroleum oil refining.
  • Natural Gas Processing: Around 34% comes from natural gas processing.
  • Desulphurisation Process: Desulphurisation of crude oil and raw gas to produce cleaner fuels results in the recovery of sulphur.

Why Is Sulphur Important For Fertilisers?

• Sulphuric Acid Production: Most sulphur is converted into sulphuric acid, which is essential for processing rock phosphate.
• Rock Phosphate Processing: Rock phosphate cannot be directly used as fertiliser. It is reacted with sulphuric acid to make phosphorus water-soluble and absorbable by plants.
• Fertiliser Production: This process is essential for producing DAP, SSP and complex fertilisers such as 20:20:0:13, 10:26:26 and 12:32:16.

Reasons For Rising Sulphur Prices

• Russia-Ukraine Conflict: Ukrainian drone and missile attacks on Russian oil refineries and gas complexes have affected sulphur availability.
• West Asia Conflict: Attacks on energy infrastructure in Saudi Arabia, Qatar and the United Arab Emirates have also affected supply.
• Export Restrictions: Russia has banned exports of sulphur and sulphuric acid to safeguard domestic fertiliser production, while China has restricted sulphuric acid exports.
• EV Battery Demand: Sulphuric acid demand has increased for extracting nickel from laterite ores and producing Mixed Hydroxide Precipitate (MHP) used in EV batteries.
• Indonesia: Nickel-related sulphuric acid demand increased from 3.5 million tonnes in 2021 to 16 million tonnes in 2025, much of it linked to Indonesia.

India’s Sulphur Requirement

• Annual Consumption: India consumes around 3.8–3.9 million tonnes of sulphur annually.
• Fertiliser Sector Demand: The fertiliser industry accounts for around 2–2.1 million tonnes of this demand.
• Domestic Sources: Indian fertiliser companies source sulphur from domestic oil refineries and sulphuric acid from the smelting complexes of Hindustan Zinc Ltd and Birla Copper.
• Import Dependence: Despite these domestic sources, bulk sulphur requirements are met through imports.

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Impact of Rising Sulphur Prices On Phosphatic Fertilisers

• Higher Production Costs: Rising sulphur prices can increase the cost of producing sulphuric acid and phosphoric acid used in phosphatic fertilisers.
• Sulphuric Acid Requirement: Around 2.6–2.8 tonnes of sulphuric acid are required to produce one tonne of phosphoric acid.
• Domestic Capacity Gap: India has around 2.2 million tonnes of domestic phosphoric acid manufacturing capacity against a requirement of 4.3–4.5 million tonnes.

News Source: Indian Express

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