New Delhi, July 24: The Government of India has said it has undertaken a series of measures to strengthen domestic fertilizer production, diversify import sources and ensure uninterrupted fertilizer supplies to farmers amid global market volatility and supply chain disruptions.
Union Minister for Chemicals and Fertilizers Jagat Prakash Nadda shared the details in a written reply in the Lok Sabha.
According to the ministry, fluctuations in fertilizer production are primarily influenced by the availability of raw materials and feedstocks, international price movements and technical shutdowns at production facilities. To mitigate these risks, the government has diversified sourcing of both raw materials and finished fertilizers.
The Department of Fertilizers has also expanded import channels and worked with Indian missions abroad to identify additional suppliers. Through global tenders, India secured 25 lakh metric tonnes (LMT) of urea in April 2026 and another 17.7 LMT in June 2026, helping maintain supplies despite disruptions in international markets.
The ministry said fertilizer availability is monitored before every cropping season through consultations between the Department of Agriculture and Farmers Welfare and State Governments. Based on projected demand, monthly supply plans are issued, while the Integrated Fertilizer Management System (iFMS) tracks movement of subsidized fertilizers nationwide.
Regular video conferences are also held with State agriculture officials to address supply gaps and facilitate timely dispatches.
The government highlighted significant expansion in domestic urea production capacity under the New Investment Policy (NIP)-2012. Six new urea plants—four established through joint ventures of public sector undertakings and two by private companies—have added a combined capacity of 76.2 lakh metric tonnes per annum (LMTPA).
The new facilities include Ramagundam in Telangana; Gorakhpur in Uttar Pradesh; Sindri in Jharkhand; Barauni in Bihar; Panagarh in West Bengal; and Gadepan-III in Rajasthan. Each plant has an installed capacity of 12.7 LMTPA.
As a result, India’s indigenous urea production capacity has increased from 207.54 LMTPA in 2014-15 to 269.42 LMTPA in 2026-27, the ministry said.
The Centre also noted that two additional projects are under implementation: the Talcher Fertilizers Limited project in Odisha, based on coal gasification technology, and the Assam Valley Fertilizer and Chemical Company Ltd. project in Assam. Both are expected to add another 12.7 LMTPA each upon completion.
The New Urea Policy (NUP)-2015 has further contributed to higher output by increasing production at existing gas-based urea units. According to the ministry, the policy has resulted in an additional annual production of 20–25 LMT compared to 2014-15 levels.
India’s total urea production has risen from 225 LMT in 2014-15 to a record 314.07 LMT in 2023-24. During 2025-26, the country produced 293.30 LMT of urea.
The government recently approved the National Investment Policy for Urea-2026 (NIPU-2026) to encourage fresh investments in the sector as part of the Aatmanirbhar Bharat initiative.
On phosphatic and potassic (P&K) fertilizers, the ministry said the Nutrient Based Subsidy (NBS) Scheme continues to support availability, with subsidies amounting to ₹41,533.81 crore approved for the Kharif 2026 season.
The Centre has also introduced measures to reduce dependence on imported phosphatic fertilizers, including incentives for domestic manufacturing, expansion of fertilizer grades covered under the NBS Scheme from 22 in 2021 to 28, and freight subsidies for Single Super Phosphate (SSP) since Kharif 2022.
The ministry said the combined initiatives are aimed at strengthening India’s fertilizer security, enhancing domestic production capacity and ensuring timely availability of critical agricultural inputs to farmers across the country.
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