Fertiliser Imports and Production in India (2025-26)
In the fiscal year 2025-26, India imported a substantial amount of fertilisers, totaling 28.2 million tonnes (mt), valued at over $14.5 billion.
Fertiliser Import Details
- Urea: 11.2 mt, valued at $5.2 billion.
- Di-ammonium phosphate (DAP): 6.4 mt, valued at $4.9 billion.
- Muriate of potash (MOP): 3.7 mt, valued at $1.3 billion.
This import value surpassed the previous year's $8.2 billion and was the highest since $15.3 billion in 2022-23. However, these figures only represent finished fertiliser imports, not the entire foreign exchange outflow related to fertilisers.
Domestic Fertiliser Production
- Urea: 29.3 mt
- DAP: 3.9 mt
- Complex fertilisers (N, P, K, S): 12 mt
- Single super phosphate (SSP): 5.7 mt
Domestic production heavily relies on imported intermediate chemicals or raw materials.
Import of Raw Materials
- Natural Gas: 26 mt of liquefied natural gas (LNG), valued at $13.3 billion.
- Phosphoric acid: 2.2 mt, valued at $2.7 billion.
- Rock phosphate: 11.1 mt, valued at $1.9 billion.
- Ammonia: 2.5 mt, valued at $1.1 billion.
- Sulphur: 2.1 mt, valued at $776.4 million.
- Sulphuric acid: 2 mt, valued at $249.8 million.
Approximately 90% of ammonia and 80% of sulphur and sulphuric acid imports are for fertiliser manufacture.
Total Fertiliser Import Bill
India's total fertiliser import bill, including finished products and inputs, was $27.2 billion in 2025-26, second only to the record $33.4 billion in 2022-23.
Impact of Global Conflicts on Fertiliser Prices
In 2022-23, the surge in fertiliser imports was influenced by Russia's invasion of Ukraine. The ongoing conflict involving the United States-Israel versus Iran, starting February 28, could impact prices in 2026-27. The closure of the Strait of Hormuz and the West Asia crisis have already raised global fertiliser prices.
Price Comparisons (Current vs. Previous Year)
- Urea: $935-959/tonne vs. $410-420/tonne
- DAP: $935/tonne vs. $725/tonne
- MOP: $383/tonne vs. $283/tonne
- Phosphoric acid: $1,360/tonne vs. $1,055/tonne
- Ammonia: $840-850/tonne vs. $400-420/tonne
- Sulphur: $750-850/tonne vs. $295-305/tonne
The depreciation of the rupee further exacerbates the cost of higher imports, impacting the domestic economy.
State Government Regulations on Fertiliser Sales
Recent state government orders have banned the cross-selling of subsidised and non-subsidised fertilisers. This move has created discontent in the industry.
Non-Subsidised Fertilisers
- Include products like water-soluble fertilisers, micronutrients, nano and liquid specialty fertilisers, bio-stimulants, and bio-fertilisers.
- These are premium fertilisers for high-value crops sold through the same distribution channels as subsidised fertilisers.
The ban is justified by allegations of tagging, where companies force farmers to buy non-subsidised fertilisers with subsidised ones. However, industry insiders warn this may promote low-quality products without proper farmer education.
