India’s Fertiliser Supply Chain Adapts as Imports Surge Amid Production Decline
Recent provisional data from the Fertiliser Association of India (FAI) reveals a significant shift in the fertiliser supply landscape for the period of April to November 2025. With domestic production facing challenges, the reliance on imports has become crucial for ensuring sufficient nutrient availability during the crop nutrition phases.
Urea Market Dynamics
Urea sales rose by 2.3%, reaching 25.40 million tonnes compared to the previous year. This minor growth, however, conceals a concerning trend: domestic production of urea has decreased by 3.7% to 19.75 million tonnes. In stark contrast, imports skyrocketed by over 120% to 7.17 million tonnes, from last year’s 3.26 million tonnes. The import figures indicate proactive supply management input to maintain nutrient flow throughout the year, particularly in November, when urea imports surged 68.4% year-on-year.
DAP and the Shift Towards Imports
In the diammonium phosphate (DAP) segment, sales remained relatively stable at 7.12 million tonnes, marking a 1% decline. The source of this stability, however, lies in the 67% reliance on imports to meet demand, a notable increase from 56% last year. Domestic DAP production has dropped by 5.2%, thus reinforcing the need for imported supplies.
Complex Fertilisers See Strong Performance
The NP and NPK complex fertilisers registered marginal growth, with sales maintaining at 10.38 million tonnes. Remarkably, production increased by 13.8% to 8.15 million tonnes, while imports nearly doubled, climbing 98.7% to 2.72 million tonnes. This trend reveals farmers’ growing preference for nutrient-rich formulations tailored to crop needs.
Indigenous Fertiliser Growth
On a positive note, the Single Super Phosphate (SSP) market showed significant growth, with sales escalating by 15% to 4.16 million tonnes and production up by 9.5% to 3.97 million tonnes. This indicates a solid endorsement of domestic phosphatic fertilisers, aligning with increasing farmer confidence in their quality and performance.
Conclusion
This shift in the fertiliser supply chain emphasizes the importance of a balanced approach, combining domestic production strengths with strategic import reliance. As the agricultural sector evolves, ongoing observation of production and import trends remains essential to ensure sustainable and robust fertilisation practices that cater to diverse agricultural needs across India.
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