Government Claims “Comfortable
Fertilizer Availability” for Kharif 2025 as Farmers Claim Severe Urea Shortage,
Global Price Rise following Ukraine War, Black Market Price at Rs. 500 per Bag
Double the Official Price
·
Record 35% Rise in Urea and 44% Growth
in DAP/NPK Production
·
Comfortable Fertilizer Availability Maintained
in Kharif 2025; Higher Sales Met Without Shortages amid Global Disruptions
The Department of Fertilizers (DoF) has reiterated its commitment to ensuring timely
and adequate supply of fertilizers across the country. Fertilizer
requirements are assessed State-wise by the Department of Agriculture &
Farmers Welfare (DA&FW) before each cropping season, based on which the
DoF issues monthly supply plans.
Strong
Growth in Domestic Fertilizer Production
·
Urea production rose from 227.15 LMT
(2013-14) to 306.67 LMT (2024-25) — a 35% increase.
·
DAP & NPKS production rose
from 110.09 LMT to 158.78 LMT during the same period — a 44%
increase.
Global
Challenges and India’s Resilient Response
·
The Red Sea crisis has disrupted shipments,
forcing re-routing via the Cape of Good Hope, adding 6,500 km and raising
costs.
·
The Russia-Ukraine conflict and Israel-Iran
tensions have further escalated global fertilizer prices.
·
Despite these headwinds, India secured supplies
through strategic partnerships:
o
25 LMT of DAP & TSP
arrangement with Morocco.
o
31 LMT per year DAP supply for five
years (from 2025-26) under a Long-Term Agreement with Saudi Arabia.
Fertilizer
Availability During Kharif 2025 (as of 20 Aug 2025)
·
Urea: Requirement 143 LMT;
Availability 183 LMT; Sales 155 LMT (13 LMT higher than last year).
·
DAP: Requirement 45 LMT; Availability
49 LMT; Sales 33 LMT.
·
NPKs: Requirement 58 LMT; Availability
97 LMT; Sales 64.5 LMT.
Availability has remained comfortable across all
States, ensuring no scarcity despite higher demand.
Shielding
Farmers from High Global Prices
·
Urea continues to be supplied at the
statutory MRP of ₹242 per 45 kg bag.
·
DAP supplied at ₹1350 per
bag, supported by a special subsidy package covering:
o
Reimbursement of costs & GST
o
Reasonable return provision
o
Buffer against international price hikes
Enforcement
Against Malpractices (April–Aug 2025)
·
1,99,581 inspections/raids
conducted.
·
7,927 show cause notices issued.
·
3,623 licenses cancelled/suspended.
·
311 FIRs registered under the Essential
Commodities Act to curb black marketing, hoarding, and diversion.
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 years starting 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.