Di-Ammonium Phosphate (DAP) Production Plant Project Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue

Report Overview: 

IMARC Group’s report, titled “Di-Ammonium Phosphate (DAP) Production Plant Project Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue,” provides a complete roadmap for setting up a di-ammonium phosphate (DAP) production plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc. The di-ammonium phosphate (DAP) project report provides detailed insights into project economics, including capital investments, project funding, operating expenses, income and expenditure projections, fixed costs vs. variable costs, direct and indirect costs, expected ROI and net present value (NPV), profit and loss account, financial analysis, etc.

What is Di-Ammonium Phosphate (DAP)?

Di-ammonium phosphate (DAP) is a highly water-soluble fertilizer widely utilized in agriculture to supply essential nutrients to crops. Chemically represented as (NH₄)₂ HPO₄, DAP is composed of two ammonium ions and one phosphate ion, typically containing about 18% nitrogen (N) and 46% phosphorus pentoxide (P2O5). Its crystalline structure allows for easy handling, storage, and transportation, making it one of the most popular phosphorus-based fertilizers globally. Additionally, DAP’s high solubility facilitates rapid nutrient availability, supporting vigorous root development and early crop growth. Its key properties include low hygroscopicity, high purity, and stability under normal storage conditions, which ensure minimal nutrient loss. DAP finds applications across cereals, oilseeds, fruits, and vegetables, promoting higher yields and enhancing nutrient use efficiency.

Di-Ammonium Phosphate (DAP) Production Plant: Key Highlights

• Process Used: Neutralization and granulation process
• End-use Industries: Agriculture, horticulture, floriculture, and turf management
• Applications: Fertilization of cereals, oilseeds, vegetables, fruits, and pasture lands

A di-ammonium phosphate (DAP) production plant is a specialized facility designed to produce high-purity granular or crystalline di-ammonium phosphate through chemical synthesis. In addition, the production begins with the neutralization of concentrated phosphoric acid using gaseous ammonia in a reactor under carefully controlled conditions to maintain optimal pH and temperature. The resulting slurry is then granulated using rotary drum granulators or fluidized bed granulators, forming uniform DAP granules. These granules undergo drying, cooling, screening, and coating to ensure proper size, moisture content, and storage stability. Moreover, advanced plants include automated ammonia injection systems, precise temperature and pH monitoring units, and dust control mechanisms to ensure operational safety and environmental compliance. The facility also incorporates laboratories for chemical analysis, quality control, and technical tests to guarantee nutrient content and granule hardness. Furthermore, DAP produced in such plants serves multiple agricultural applications, including soil enrichment, starter fertilizers, and nutrient supplementation in precision farming practices, helping farmers improve crop productivity while minimizing nutrient losses.

Di-Ammonium Phosphate (DAP) Industry Outlook 2025:

The DAP market is witnessing strong growth driven by agricultural modernization, rising crop intensification, and demand for balanced fertilizers. It is primarily driven by staple crops like wheat, rice, and maize, which require high phosphorus and nitrogen inputs for optimal yield. Moreover, regional growth in Asia-Pacific, particularly India, China, and Southeast Asia, is propelled by government subsidy programs, crop diversification, and adoption of precision farming practices. In Africa and Latin America, expanding arable land and efforts to improve food security drive DAP usage. Furthermore, manufacturers are increasingly investing in energy-efficient granulation units, dust control systems, and automated packing lines to reduce production costs and environmental impact. Besides this, the growing need for food security and stable fertilizer supply is driving India’s strategic partnerships with global producers. For instance, in July 2025, India signed a five-year agreement with Saudi Arabia’s Ma’aden to secure a steady supply of di-ammonium phosphate (DAP) and other key fertilizers, amid tightening global markets and export restrictions from China. The deal ensures price stability and reliable availability for farmers. This landmark agreement with Ma’aden reinforces India’s commitment to ensuring stable fertilizer supplies, supporting farmers, and strengthening agricultural productivity amid global market uncertainties.

Di-Ammonium Phosphate (DAP) Market Trends and Growth Drivers:

Rising global food demand

The increase in global population, projected to exceed 9 billion by 2035, necessitates higher agricultural output to ensure food security. Staple crops such as rice, wheat, and maize require phosphorus and nitrogen for optimal development. DAP’s nutrient composition directly supports enhanced root growth, tillering, and grain formation, making it critical for sustaining yields. According to the Food and Agriculture Organization (FAO) its global cereal production forecast for 2025 predicts 10.1 million tonnes. Wheat output is projected at 809.7 million tonnes, up 1.3% from 2024, indicating further growth. This drives consistent DAP demand for both subsistence and commercial farming. The versatility of DAP in various cropping systems, including pulses, vegetables, and oilseeds, further supports its adoption. Moreover, various governments in countries like India, China, and Brazil provide subsidies and distribution schemes for fertilizers, enhancing affordability and usage. Consequently, the rising food demand ensures stable consumption and encourage industry investment in production capacity and technology upgrades.

Government initiatives and subsidies

Government policies and subsidy programs significantly influence DAP market growth. Many governments provide financial support to farmers to encourage the use of high-efficiency fertilizers for enhanced productivity. For example, India’s Fertilizer subsidy scheme ensures affordability of key fertilizers, including DAP, by offsetting a portion of production costs for manufacturers and retail prices for farmers. As per the report published by Press Information Bureau (PIB) in August 2025, the Government of India (GoI) extended a one-time special subsidy of ₹3,500 per tonne for Di-Ammonium Phosphate (DAP) fertilizer from April 2024 to March 2025 to support farmers amid global market pressures. The move ensures affordable access to DAP, helping maintain crop productivity while aligning with broader efforts to strengthen India’s fertilizer sector and promote sustainable agriculture. These initiatives stimulate demand, especially among smallholders and large-scale farmers aiming for high crop output. Subsidy-driven affordability encourages the adoption of mechanized and precision fertilizer application, increasing fertilizer efficiency. Furthermore, policies promoting sustainable agriculture also influence the market by encouraging nutrient management plans that include DAP for balanced fertilization are influencing global market growth.

Latest Industry Developments:

• August 2025: Hindustan Zinc, a Vedanta Group company, is set to launch its Rs 1,700-crore fertiliser plant by December 2026. The facility aims to produce Diammonium Phosphate (DAP) fertiliser, reducing reliance on imports and supporting farmers. The first phase will see a phosphoric acid plant operational by March-April 2026, followed by full DAP production.
   
• January 2025: Bangladesh Agricultural Development Corporation (BADC), under the Ministry of Agriculture, signed an agreement with Banyan International Training Ltd, China, to import 440,000 metric tons of high-quality Di-Ammonium Phosphate (DAP) fertilizer for 2025 to ensure a steady supply of non-urea fertilizers.

Leading Di-Ammonium Phosphate (DAP) Manufacturers:

Leading manufacturers in the global di-ammonium phosphate (DAP) market include large-scale manufacturers with vertically integrated production and distribution networks. Key players include

• Mosaic
• Vigyan Chemicals
• Sichuan Blue Sword Chemical Co. Ltd
• Pacific Chemicals Ltd
• Mississippi Potashcorp
• OCP Group
• Phosphates Corporation
• Liuguo Chemical
• Wengfu Group
• Shangdong Lubei Chemical

All these companies serves end-use industries such as agriculture, horticulture, floriculture, and turf management.

Di-Ammonium Phosphate (DAP) Plant Setup Requirements

Detailed Process Flow:

The production process is a multi-step operation that involves several unit operations, material handling, and quality checks. Below are the main stages involved in the di-ammonium phosphate (DAP) production process flow:

• Unit Operations Involved
• Mass Balance and Raw Material Requirements
• Quality Assurance Criteria
• Technical Tests

Key Considerations for Establishing a Di-Ammonium Phosphate (DAP) Production Plant:

Setting up a di-ammonium phosphate (DAP) production plant requires evaluating several key factors, including technological requirements and quality assurance. Some of the critical considerations include:

• Site Selection: The location must offer easy access to key raw materials such as phosphoric acid, ammonia, water for slurry formation, and optional anti-caking agents to ensure granule stability and prevent clumping during storage and handling. Proximity to target markets will help minimize distribution costs. The site must have robust infrastructure, including reliable transportation, utilities, and waste management systems. Compliance with local zoning laws and environmental regulations must also be ensured.​
   
• Plant Layout Optimization: The layout should be optimized to enhance workflow efficiency, safety, and minimize material handling. Separate areas for raw material storage, production, quality control, and finished goods storage must be designated. Space for future expansion should be incorporated to accommodate business growth.​
   
• Equipment Selection: High-quality, corrosion-resistant machinery tailored for di-ammonium phosphate (DAP) production must be selected. Essential equipment includes neutralization reactors, granulators, dryers, coolers, screening machines, coating units, ammonia storage and injection systems, and dust collection and scrubbing systems. All machinery must comply with industry standards for safety, efficiency, and reliability.​
   
• Raw Material Sourcing: Reliable suppliers must be secured for raw materials like phosphoric acid, ammonia, water for slurry formation, and optional anti-caking agents to ensure granule stability and prevent clumping during storage and handling to ensure consistent production quality. Minimizing transportation costs by selecting nearby suppliers is essential. Sustainability and supply chain risks must be assessed, and long-term contracts should be negotiated to stabilize pricing and ensure a steady supply.
   
• Safety and Environmental Compliance: Safety protocols must be implemented throughout the production process of di-ammonium phosphate (DAP). Advanced monitoring systems should be installed to detect leaks or deviations in the process. Effluent treatment systems are necessary to minimize environmental impact and ensure compliance with emission standards.​
   
• Quality Assurance Systems: A comprehensive quality control system should be established throughout production. Analytical instruments must be used to monitor product concentration, purity, and stability. Documentation for traceability and regulatory compliance must be maintained.

Project Economics:

​Establishing and operating a di-ammonium phosphate (DAP) production plant involves various cost components, including:​

• Capital Investment: The total capital investment depends on plant capacity, technology, and location. This investment covers land acquisition, site preparation, and necessary infrastructure.
   
• Equipment Costs: Equipment costs, such as those for neutralization reactors, granulators, dryers, coolers, screening machines, coating units, ammonia storage and injection systems, and dust collection and scrubbing systems, represent a significant portion of capital expenditure. The scale of production and automation level will determine the total cost of machinery.​
   
• Raw Material Expenses: Raw materials, including phosphoric acid, ammonia, water for slurry formation, and optional anti-caking agents to ensure granule stability and prevent clumping during storage and handling, are a major part of operating costs. Long-term contracts with reliable suppliers will help mitigate price volatility and ensure a consistent supply of materials.​
   
• Infrastructure and Utilities: Costs associated with land acquisition, construction, and utilities (electricity, water, steam) must be considered in the financial plan.
   
• Operational Costs: Ongoing expenses for labor, maintenance, quality control, and environmental compliance must be accounted for. Optimizing processes and providing staff training can help control these operational costs.​
   
• Financial Planning: A detailed financial analysis, including income projections, expenditures, and break-even points, must be conducted. This analysis aids in securing funding and formulating a clear financial strategy. 

Capital Expenditure (CapEx) and Operational Expenditure (OpEx) Analysis:

Capital Investment (CapEx): Machinery costs account for the largest portion of the total capital expenditure. The cost of land and site development, including charges for land registration, boundary development, and other related expenses, forms a substantial part of the overall investment. This allocation ensures a solid foundation for safe and efficient plant operations.

Operating Expenditure (OpEx): In the first year of operations, the operating cost for the di-ammonium phosphate (DAP) production plant is projected to be significant, covering raw materials, utilities, depreciation, taxes, packing, transportation, and repairs and maintenance. By the fifth year, the total operational cost is expected to increase substantially due to factors such as inflation, market fluctuations, and potential rises in the cost of key materials. Additional factors, including supply chain disruptions, rising consumer demand, and shifts in the global economy, are expected to contribute to this increase.

Capital Expenditure Breakdown:

Operational Expenditure Breakdown:

Profitability Analysis: 

Report Coverage:

Key Questions Answered in This Report:

• How has the di-ammonium phosphate (DAP) market performed so far and how will it perform in the coming years?
• What is the market segmentation of the global di-ammonium phosphate (DAP) market?
• What is the regional breakup of the global di-ammonium phosphate (DAP) market?
• What are the price trends of various feedstocks in the di-ammonium phosphate (DAP) industry?
• What is the structure of the di-ammonium phosphate (DAP) industry and who are the key players?
• What are the various unit operations involved in a di-ammonium phosphate (DAP) production plant?
• What is the total size of land required for setting up a di-ammonium phosphate (DAP) production plant?
• What is the layout of a di-ammonium phosphate (DAP) production plant?
• What are the machinery requirements for setting up a di-ammonium phosphate (DAP) production plant?
• What are the raw material requirements for setting up a di-ammonium phosphate (DAP) production plant?
• What are the packaging requirements for setting up a di-ammonium phosphate (DAP) production plant?
• What are the transportation requirements for setting up a di-ammonium phosphate (DAP) production plant?
• What are the utility requirements for setting up a di-ammonium phosphate (DAP) production plant?
• What are the human resource requirements for setting up a di-ammonium phosphate (DAP) production plant?
• What are the infrastructure costs for setting up a di-ammonium phosphate (DAP) production plant?
• What are the capital costs for setting up a di-ammonium phosphate (DAP) production plant?
• What are the operating costs for setting up a di-ammonium phosphate (DAP) production plant?
• What should be the pricing mechanism of the final product?
• What will be the income and expenditures for a di-ammonium phosphate (DAP) production plant?
• What is the time required to break even?
• What are the profit projections for setting up a di-ammonium phosphate (DAP) production plant?
• What are the key success and risk factors in the di-ammonium phosphate (DAP) industry?
• What are the key regulatory procedures and requirements for setting up a di-ammonium phosphate (DAP) production plant?
• What are the key certifications required for setting up a di-ammonium phosphate (DAP) production plant?

Report Customization

While we have aimed to create an all-encompassing di-ammonium phosphate (DAP) production plant project report, we acknowledge that individual stakeholders may have unique demands. Thus, we offer customized report options that cater to your specific requirements. Our consultants are available to discuss your business requirements, and we can tailor the report's scope accordingly. Some of the common customizations that we are frequently requested to make by our clients include:

• The report can be customized based on the location (country/region) of your plant.
• The plant’s capacity can be customized based on your requirements.
• Plant machinery and costs can be customized based on your requirements.
• Any additions to the current scope can also be provided based on your requirements.

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