This Acid Won't Burn Your Hands
The Dollar Business|April 2017

Perennial demand and low domestic production promise a worthy business opportunity in imports of phosphoric acid. All an importer needs to do is play the volume game.

TDB Intelligence Unit
This Acid Won't Burn Your Hands

Heard the spiel about aerat-ed drinks being harmful for your health? Well, one of the reasons you are advised to stay away from your soft drink is because they’re made using an inorganic acid called phosphoric acid. This acid is also used as a rust-inhibitor in anti-rust coatings of your car and in handy home cleaning products for your kitchen shelf. What’s more? Phosphoric acid also acts as a food additive or preservative in your favourite snack and dairy product.

On a larger scale, the use of phosphoric acid can be seen in the fertiliser industry, where it is used to manufacture complex compounds such as diammonium phosphate (DAP) and single super phosphate (SSP). But wait! We are not going to throw at you yet another advisory. Instead, we will bring to you what we do best – explore new avenues in foreign trade. When it comes to phosphoric acid, importers of this acid are definitely minting money.

BOOMING DEMAND

Phosphoric acid is broadly categorised into two grades – merchant and food. The quality is decided by the amount of phosphorous content in the acid. For instance, a content of 54% phosphorus in merchant grade is considered good, while food grade phosphoric acid needs to have at least 65% of phosphorous.

Experts estimate that nearly 85% of the traded phosphoric acid is merchant or industrial grade, while the remaining 15% is used in the food industry.

Although trade in food grade phosphoric acid is small, according to traders, it offers better returns. Rajesh Mehta of Nilkanth Organics, a Maharashtra-based manufacturer and importer of chemicals, reveals: “The quantity of food grade phosphoric acid is smaller but offers a faster turnaround. Also, the demand has been growing year-on-year.”

This story is from the April 2017 edition of The Dollar Business.

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This story is from the April 2017 edition of The Dollar Business.

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