Government Announces Upcoming Production of Two New Urea Plants to Reduce Import Dependence in Fertiliser Sector
India is poised to enhance its urea production capacity by 25.4 lakh tonnes annually with the imminent launch of two new fertiliser plants. This initiative, reported by PTI, aims to bolster domestic availability and lessen dependence on imports. The move aligns with the government’s ongoing efforts to achieve fertiliser self-sufficiency while protecting farmers from global supply chain disruptions and price fluctuations.
The Ministry of Chemicals and Fertilizers announced that since 2014, six mega urea plants have been established, contributing a total of 76.2 lakh tonnes to the annual capacity. The ministry confirmed that the two new high-capacity plants are set to begin production shortly. In the 2025-26 fiscal year, India imported over 100 lakh tonnes of urea, highlighting the need for increased domestic production.
Domestic urea production has risen from 225 lakh tonnes in 2014-15 to a record 314.07 lakh tonnes in 2023-24. For the fiscal year 2024-25, production was recorded at 306.67 lakh tonnes. Additionally, phosphatic and potassic (P&K) fertiliser production reached a record 211.22 lakh tonnes in 2024-25, up from 159.54 lakh tonnes in 2014-15. Both public and private sector companies are actively expanding their capacity through new P&K fertiliser projects.
Addressing Geopolitical Challenges
The ministry emphasized the government’s proactive measures to secure fertiliser supplies amid geopolitical tensions, particularly in West Asia. These conflicts have led to soaring prices and significant delays in shipping. The government has responded by exploring alternative transit routes and engaging in diplomatic efforts to source materials directly from global producers.
Despite these challenges, the ministry assured that fertiliser availability remains adequate for the ongoing kharif sowing season. The government has taken steps to mitigate logistics issues arising from the regional tensions, ensuring a steady supply of fertilisers to farmers.
Subsidy Support for Farmers
The Centre has absorbed the impact of rising global fertiliser prices to maintain stable retail prices for farmers. The ministry stated that the Modi government prioritizes farmers’ interests by not increasing fertiliser prices despite international inflationary pressures. A 45-kg bag of urea continues to be sold at a subsidised price of Rs 266.50, while the global price exceeds Rs 4,100 per bag. Similarly, di-ammonium phosphate (DAP) is priced at Rs 1,350 for a 50-kg bag, compared to a global price of around Rs 5,000 per bag.
The ministry affirmed that India’s fertiliser security remains robust, with availability consistently surpassing requirements across all major fertilisers.
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