# DAP and MAP and Phosphoric acid

DAP and MAP are phosphoric acid neutralised with ammonia, so acid is their main input and price driver. For India the choice is between importing finished DAP, importing acid and granulating at home, or importing rock and making acid, and its quarterly acid contract with Moroccan and Jordanian suppliers is a key cost benchmark.

Source page: https://www.materialinsights.org/links/dap-and-map-and-phosphoric-acid/

[DAP and MAP](https://www.materialinsights.org/chemicals/dap_map/) (chemical) and [Phosphoric acid](https://www.materialinsights.org/chemicals/phosphoric_acid/) (chemical): 5 relationships.

## How they are linked

### 1. Acid plus ammonia makes DAP

*Physical flow · Strong · Phosphoric acid into DAP and MAP*

DAP is made in a controlled reaction of phosphoric acid with ammonia, so all its phosphate comes from the acid.

- **46%** P2O5 content of DAP (grade 18-46-0)
- **about 0.2 t** ammonia per tonne of DAP
- **0.4 t** sulphur per tonne of DAP, to dissolve the rock for the acid

Each tonne of DAP carries about 0.46 t of P2O5 from acid that took about 1.5 to 2 t of phosphate rock and 0.4 t of sulphur to make, so rock and sulphur costs reach DAP through the acid, alongside the cost of ammonia.

Sources: [Mosaic Crop Nutrition (from IPNI Nutrient Source Specifics No. 17)](https://www.cropnutrition.com/?p=4237)

### 2. India buys acid from Morocco and Jordan

*Physical flow · High in India · Imported acid to Indian DAP plants*

India has little phosphate rock, so its DAP plants run largely on imported acid, much of it from joint ventures with Moroccan and Jordanian producers set up to supply India.

- **about 40%** share of India's phosphoric acid imports from Morocco, 2020-21
- **61.6%** import share of India's phosphoric acid supply, 2021-22

IMACID at Jorf Lasfar, set up in 1999 by OCP with the Indian firms CFCL and Tata Chemicals, supplies acid under a full buy-back. In Jordan, JIFCO, 52% owned by IFFCO and 48% by JPMC, was designed to make 475,500 t of P2O5 a year, mostly for export to India.

Sources: [Rural Voice](https://eng.ruralvoice.in/fertilising-bilateral-relations-between-india-and-morocco); [International Finance Corporation](https://disclosures.ifc.org/project-detail/SPI/26798/jordan-india-fertilizer-company)

### 3. Acid contract feeds DAP cost

*Cost and price · Strong · Acid price to DAP cost and subsidy*

Indian DAP makers buy acid on quarterly contracts, so a higher acid price raises domestic DAP cost and, under fixed retail prices, the subsidy needed.

- **$1,700/t P2O5** India's Q3 2026 acid contract, CFR
- **$340/t** rise from the Q2 2026 contract
- **49%** rise in dry bulk sulphur prices to India over Q2 2026

The Q3 2026 contract between Coromandel and JPMC, settled in July 2026, rose mainly on firm sulphur prices. Because acid prices move with rock, sulphur and DAP prices, an acid-buying DAP plant has little control over its main cost.

Sources: [Argus Media](https://www.argusmedia.com/pt/news-and-insights/latest-market-news/2846639-india-3q-phosacid-settles-at-1-700-t-p2o5-cfr)

### 4. Price link: derived product

*Cost and price · Strong · Both ways*

Most traded phosphoric acid ends up as DAP and MAP, so acid and fertiliser prices track each other, with acid contracts following DAP with a delay.

- **0.34** monthly change correlation
- **0.88** 12-month change correlation
- **0.52** monthly change correlation, last five years

The yearly link is very strong and the best fit comes with a lag of about two months, consistent with acid contracts set quarterly after DAP prices move. The fitted elasticity is 0.81.

Sources: [Material Insights (World Bank, FRED, IMF data)](https://www.materialinsights.org/chemicals/dap_map/correlation/)

### 5. Make or import

*Policy · High in India · India chooses between DAP and acid imports*

India can import DAP directly or import acid and granulate locally, and the relative price of acid and DAP decides which is cheaper.

- **5.54 Mt** India DAP imports, April to November 2025
- **2.68 Mt** domestic DAP production, April to November 2025
- **about 67%** import share of DAP availability, April to November 2025 (56% a year earlier)

In April to November 2025, according to provisional FAI data, domestic DAP output fell 5.2% while imports rose 54%, so imports supplied about two-thirds of DAP. Expensive acid relative to DAP pushes India towards finished imports; cheaper acid favours domestic granulation.

Sources: [Rural Voice](https://eng.ruralvoice.in/urea-imports-up-120-pc-dap-54-pc-as-india-fertilizer-import-dependence-grows)

## For investors

### Key learnings

1. Phosphoric acid is the main input to DAP and is itself made from rock and sulphur, so sulphur spikes reach DAP through the acid, as in the Q3 2026 contract.
2. Acid contract prices follow DAP with a short lag, so acid-buying DAP makers carry volatile input costs.
3. Producers with their own rock and acid, such as OCP and JPMC, keep the upstream margin that importers which granulate pay away.

### What to track

- **India quarterly phosphoric acid contract price**: Sets cost for Indian DAP makers (Quarterly · Argus, company announcements)
- **DAP price against acid and ammonia cost**: Shows granulation margin (Weekly · World Bank, industry price reports)
- **Sulphur prices delivered to India and Morocco**: Lead acid cost (Weekly · industry price reports)

## For policymakers

### Key learnings

1. India imported about 62% of its phosphoric acid in 2021-22, about 40% of acid imports coming from Morocco in 2020-21, so acid supply deals matter as much as DAP imports.
2. Joint ventures such as IMACID in Morocco and JIFCO in Jordan give Indian firms secured acid supply, a model for other inputs.
3. Higher acid prices raise subsidy needs under fixed retail DAP prices, so tracking acid contracts helps budget the fertiliser subsidy.

### What to track

- **India DAP production, imports and sales**: Show reliance on finished imports (Monthly · Department of Fertilizers)
- **India phosphoric acid imports by source**: Show supplier concentration (Monthly · DGCI&S)
- **Nutrient-based subsidy rates for phosphate**: Show how acid costs reach the budget (Each season · Department of Fertilizers)

## India

India relied on imports for about 62% of its phosphoric acid in 2021-22, about 40% of acid imports coming from Morocco, and imported about two-thirds of its DAP in April to November 2025. Indian firms secure acid through joint ventures such as IMACID in Morocco and JIFCO in Jordan.

## Sources

1. [Price correlation, Material Insights](https://www.materialinsights.org/chemicals/dap_map/correlation/), Material Insights (World Bank, FRED, IMF data)
2. [Diammonium phosphate](https://www.cropnutrition.com/?p=4237), Mosaic Crop Nutrition (from IPNI Nutrient Source Specifics No. 17)
3. [Fertilising bilateral relations between India and Morocco](https://eng.ruralvoice.in/fertilising-bilateral-relations-between-india-and-morocco), Rural Voice (2024)
4. [Jordan India Fertilizer Company: summary of proposed investment](https://disclosures.ifc.org/project-detail/SPI/26798/jordan-india-fertilizer-company), International Finance Corporation (2010)
5. [India 3Q phosacid settles at $1,700/t P2O5 CFR](https://www.argusmedia.com/pt/news-and-insights/latest-market-news/2846639-india-3q-phosacid-settles-at-1-700-t-p2o5-cfr), Argus Media (2026)
6. [India's growing fertilizer import dependence: urea imports jump 120 pc, DAP up 54 pc](https://eng.ruralvoice.in/urea-imports-up-120-pc-dap-54-pc-as-india-fertilizer-import-dependence-grows), Rural Voice (2026)