Fertilizers Scenario in the Country
Fertilizers Scenario in the Country
The Department of Fertilizers (DoF) is entrusted with the crucial mandate of ensuring timely and adequate availability of fertilizers across the country. Before the beginning of each cropping season, the Department of Agriculture and Farmers Welfare (DA&FW) assesses State-wise fertilizer requirements. Based on these projections, the DoF issues monthly, State-wise and Company-wise supply plan.
Over the past decade, the country has witnessed an unprecedented transformation in domestic fertilizer production and strategic global partnerships that collectively strengthen India’s food security.Urea production has witnessed a robust increase from 227.15 LMT in 2013-14 to 306.67 LMT in 2024-25, marking an impressive growth of 35%.Similarly, the production of DAP and NPKS fertilizers combined has grown from 110.09 LMT to 158.78 LMT during the same period – a 44% increase, reflecting the Government’s consistent efforts to enhance Atmanirbharta in the fertilizer sector.
The prevalent geopolitical situation has affected the supplies of fertilizers to the country. The ongoing Red Sea crisis has disrupted the supplies to the country, resulting in re-routing of shipments via the Cape of Good Hope—adding over 6,500 km to the journey. This has significantly increased voyage time, particularly for DAP. Further, the Russia-Ukraine war, Israel-Iran war has escalated the prices of fertilizers in the International market.
Nevertheless, amidst these global challenges, the Government of India has exhibited remarkable resilience and foresight. Timely diplomatic engagements, logistical interventions, and long-term arrangements have ensured that our farmers do not face any scarcity. An arrangement of 25 LMT of DAP and TSP has been secured between consortium of Indian fertilizer companies and Morocco. Furthermore, in July 2025, a Long-Term Agreement (LTA) was signed between Saudi Arabia and Indian companies for the annual supply of 31 LMT of DAP for five yearsstarting 2025-26.
These robust international engagements are made to secure India’s long-term fertilizer needs and ensure timely supply to States. Due to these efforts, the availability of fertilizers has remained comfortable in the States during the ongoing Kharif 2025 season so far. Against the pro-rata requirement of 143 LMT of Urea , total availability is 183 Urea against which sales is 155 LMT. Similarly in DAP, availability is 49 LMT against pro-rata requirement of 45 LMT and sale of 33 LMT has taken place.In NPKs, the availability ensured in 97 LMT against pro-rata requirement of 58 LMT. 64.5 LMT NPKs sales has taken place until now.
As evident from the data above, the availability of fertilizers has remained comfortable during the ongoing season so far. It is noteworthy to mention that as of 20th August 2025, Urea sales have increased by over 13 LMT compared to the same period last year. Despite this increase in sales, the Department of Fertilizers has ensured uninterrupted availability of Urea across the country by maximizing domestic production and procurement through global tenders.
In order to shield the farmers from high International prices of fertilizers, the Government of India is giving huge subsidies to ensure that the fertilizers are made timely available to the farmers at affordable rates.Urea continues to be made available to farmers at a statutorily notified MRP of Rs. 242 per 45 kg bag (excluding neem coating and applicable taxes). To ensure DAP availability to farmers at Rs 1350/Bag, Government of India has given special package on DAP (Imported and Indigenous) which includes Reimbursement of other cost, Reimbursement GST, Provision of reasonable return and reimbursement of any increase in the price of DAP in the International market.
Further, the Department of Fertilizers regularly coordinates with State Governments, Port Authorities, the Ministry of Railways, and fertilizer companies to address any emerging bottlenecks proactively. States have also been advised to ensure effective enforcement action black marketing/hoarding/over-pricing and diversion of fertilizers. Since April 2025, 1,99,581 inspections /raids have been conducted;7,927 show cause notices issued ; 3,623 licenses have been cancelled/suspended and 311 FIRs have been registered under EC Act across the country.
The Government of India remains committed to ensure the timely and equitable availability of fertilizers to all farmers, reaffirming its unwavering focus on agricultural sustainability, farmers’ welfare, and national food security.