India Expands Fertilizer Import Plans Amid Rising Global Prices Due to Middle East Crisis
India is preparing for significant fertiliser imports ahead of the kharif season, as global prices have surged nearly 100% due to the ongoing crisis in the Middle East. The government announced plans to import 64 lakh tonnes of urea and 19 lakh tonnes of other fertilisers, despite a comfortable domestic supply. Officials reassured farmers that retail prices for essential nutrients will remain unchanged, ensuring stability in the market.
Government’s Import Strategy
The Indian government is taking proactive measures to secure fertiliser supplies for the upcoming kharif season. According to Aparna S Sharma, additional secretary in the department of fertilisers, the country plans to import a total of 64 lakh tonnes of urea and 19 lakh tonnes of various other fertilisers. This decision comes in light of the sharp increase in global fertiliser prices, which have nearly doubled amid geopolitical tensions. Despite these challenges, Sharma emphasized that farmers will not face any increase in retail prices for key fertilisers, including urea and Di Ammonium Phosphate (DAP). The current prices remain stable, with urea priced at Rs 266.50 per 45 kg bag and DAP at Rs 1,350 per 50 kg bag.
Current Supply and Production Status
As of now, India has already received 9.4 lakh tonnes of urea since the crisis began. Additionally, a global tender issued in February brought in another 13.07 lakh tonnes, with an expected arrival of 25 lakh tonnes more by May. Most of these imports are coming through the Strait of Hormuz, and Sharma expressed confidence in timely deliveries. On the domestic front, urea production faced challenges in March due to a force majeure on gas supplies, which reduced plant utilization to 60-65%. However, the government has taken steps to secure gas at higher prices, increasing availability for urea production to 97%. This has led to a significant recovery, with post-crisis production reaching 35.4 lakh tonnes.
Global Tender for Non-Urea Fertilisers
To further bolster supplies during the peak demand period, the government has initiated a global tender for 19 lakh tonnes of non-urea fertilisers. This includes 12 lakh tonnes of DAP, 4 lakh tonnes of Triple Superphosphate (TSP), and 3 lakh tonnes of Ammonium Sulphate. The decision on additional imports will be made after evaluating domestic production and demand trends. Recent supply data indicates a robust position, with urea availability at 71.58 lakh tonnes against a requirement of 18.17 lakh tonnes, and DAP availability at 22.35 lakh tonnes compared to a need of 5.90 lakh tonnes.
Strong Supply Outlook for Kharif Season
For the 2026 kharif season, the total fertiliser demand is estimated at 390.54 lakh tonnes, while the country currently holds an opening stock of 190.21 lakh tonnes, accounting for nearly 49% of the requirement. Sharma reassured stakeholders that the supply situation remains strong, stable, and well-managed, with availability across all major fertilisers exceeding demand. No shortages have been reported thus far, indicating a well-prepared approach to meet the needs of farmers during the kharif season.
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