Fertilizers Availability and Production Growth

Summary of Fertilizers Scenario in India

The Department of Fertilizers (DoF) plays a pivotal role in ensuring the timely and adequate availability of fertilizers in India, emphasizing the government's commitment to farmers' welfare and national food security.

• Enhanced Production:

  • Urea production increased from 227.15 LMT in 2013-14 to 306.67 LMT in 2024-25, marking a 35% rise.
  • DAP and NPKS production surged from 110.09 LMT to 158.78 LMT over the same period, reflecting a 44% growth.

• Assessment and Planning:

  • The Department of Agriculture and Farmers Welfare (DA&FW) assesses state-wise fertilizer requirements before each cropping season, guiding the DoF in formulating supply plans.

• Global Challenges:

  • The ongoing geopolitical issues, particularly the Red Sea crisis and the Russia-Ukraine war, have disrupted global fertilizer supplies, leading to extended shipping routes and increased international prices.

• Government Resilience:

  • The Government of India has engaged in timely diplomatic initiatives and logistical interventions to mitigate shortages.
  • An agreement for the supply of 25 LMT of DAP and TSP has been secured with Moroccan companies.
  • A Long-Term Agreement signed with Saudi Arabia will ensure an annual supply of 31 LMT of DAP starting from 2025-26.

• Fertilizer Availability Status:

  • For the Kharif 2025 season, total Urea availability is 183 LMT with sales of 155 LMT against a pro-rata requirement of 143 LMT.
  • DAP availability stands at 49 LMT against a requirement of 45 LMT with 33 LMT sold.
  • NPK availability is 97 LMT against a requirement of 58 LMT, with sales of 64.5 LMT recorded.

• Sales Growth:

  • Urea sales have seen an increase of over 13 LMT compared to the previous year's same period despite the growth in sales.

• Subsidy Schemes:

  • The government provides significant subsidies to stabilize fertilizer costs. Urea remains sold to farmers at a government-set price of Rs. 242 for a 45 kg bag.
  • For DAP, the designated sale price is Rs. 1350 per bag, supported by a comprehensive subsidy package covering various costs relative to international market fluctuations.

• Governance and Enforcement:

  • The Department of Fertilizers works closely with state governments, port authorities, and other stakeholders to proactively tackle any logistical challenges.
  • Since April 2025, substantial enforcement actions have been taken to curb black marketing and hoarding, including over 199,581 inspections, issuance of 7,927 show cause notices, and cancellation of 3,623 licenses.

• Commitment to Sustainability:

  • The government's initiatives underscore its focus on agricultural sustainability, emphasizing ongoing support for farmers and ensuring equitable access to essential fertilizers.

This comprehensive approach indicates a robust framework aimed at sustaining agricultural productivity while navigating through international challenges and ensuring the welfare of the farming community in India.