Ø Six New Urea Plants Add 76.2 LMTPA Capacity;
Indigenous Urea Capacity Rises to 269.42 LMTPA
Ø 42.7 LMT of Urea Secured Through Global
Tenders to Strengthen Supply Chain
Key Highlights
·
Supply Chain Strengthened: Government has
taken measures to boost domestic fertilizer production, diversify import sources,
and ensure uninterrupted fertilizer availability despite global market disruptions.
·
Global Urea Procurement: Secured 42.7
LMT of urea through global tenders:
o
25 LMT in April 2026
o
17.7 LMT in June 2026
·
Improved Fertilizer Distribution: Seasonal demand
is assessed with States, while the Department of Fertilizers allocates supplies
through monthly plans, monitors movement via the Integrated Fertilizer Management
System (iFMS), and conducts weekly review meetings.
·
Six New Urea Plants Commissioned: Under New
Investment Policy (NIP)-2012, six plants with 12.7 LMTPA each have added
76.2 LMTPA capacity.
·
New Urea Plants Include:
o
RFCL Ramagundam (Telangana)
o
HURL Gorakhpur (Uttar Pradesh)
o
HURL Sindri (Jharkhand)
o
HURL Barauni (Bihar)
o
Matix Panagarh (West Bengal)
o
Chambal Gadepan-III (Rajasthan)
·
Higher Domestic Capacity: Indigenous urea
production capacity increased from 207.54 LMTPA (2014-15) to 269.42 LMTPA
(2026-27).
·
New Projects Approved:
o
Talcher Fertilizers Limited (TFL) project under
implementation.
o
12.7 LMTPA Brownfield Ammonia-Urea Complex approved at
Namrup, Assam (AVFCCL).
·
Impact of New Urea Policy (NUP)-2015: Annual domestic
urea production increased by 20–25 LMT over 2014-15 levels.
·
Record Urea Production:
o
225 LMT in 2014-15
o
Record 314.07 LMT in 2023-24
o
293.30 LMT in 2025-26
·
New Investment Policy: National
Investment Policy for Urea-2026 (NIPU-2026) approved on 15 July 2026
to encourage fresh investments in the fertilizer sector.
·
NBS Support for P&K Fertilizers: ₹41,533.81
crore approved under the Nutrient Based Subsidy (NBS) Scheme for Kharif
2026 to ensure adequate availability of phosphatic and potassic fertilizers.
·
Measures to Reduce Import Dependence:
o
Profit guidelines issued for manufacturers/importers (2024).
o
More manufacturing units and capacity expansions recognized
under NBS.
o
Fertilizer grades under NBS increased from 22 (2021)
to 28.
o
Freight subsidy on Single Super Phosphate (SSP)
continues since Kharif 2022 to promote domestic phosphatic fertilizer use.
Key Takeaway: The Government
is expanding domestic fertilizer manufacturing, strengthening import and distribution
systems, and encouraging investment to enhance India's long-term fertilizer security
and reduce dependence on imports.
[ABS News Service/22.07.2026]
The Government of India has undertaken
a series of measures to strengthen domestic fertilizer production, diversify raw
material and fertilizer import sources, and ensure uninterrupted availability of
fertilizers despite global supply disruptions and volatility in international markets.
Domestic production is influenced by factors such as availability of raw materials
and feedstocks, international price fluctuations, and technical shutdowns. To address
these challenges, the Government has diversified sourcing and secured 25 LMT and
17.7 LMT of urea through global tenders in April 2026 and June 2026, respectively.
To ensure timely fertilizer availability,
the Department of Agriculture & Farmers Welfare, in consultation with State
Governments, assesses seasonal fertilizer requirements, while the Department of
Fertilizers allocates supplies through monthly plans and monitors movement through
the Integrated Fertilizer Management System (iFMS). Weekly
review meetings with State officials and advance imports further help maintain uninterrupted
supplies.
Under the New Investment Policy (NIP)-2012,
the Government has commissioned six new urea plants, each with a capacity of 12.7
LMTPA, adding 76.2 LMTPA to the country's production capacity. These include four
joint venture plants at the units set up through JVC are Ramagundam
urea unit of Ramagundam Fertilizers and Chemicals Ltd
(RFCL) in Telangana and 3 urea units namely Gorakhpur, Sindri and Barauni of Hindustan Urvarak &
Rasayan Limited (HURL) in Uttar Pradesh, Jharkhand and
Bihar, respectively. The units set up by private companies are Panagarh urea unit of Matix Fertilizers and Chemicals Ltd. (Matix)
in West Bengal; and Gadepan-III urea unit of Chambal Fertilizers
and Chemicals Ltd. (CFCL) in Rajasthan. Consequently, indigenous urea production
capacity has increased from 207.54 LMTPA in 2014-15 to 269.42 LMTPA during 2026-27.
The Government is also implementing the
Talcher Fertilizers Limited (TFL) project and has recently approved a 12.7 LMTPA
Brownfield Ammonia-Urea Complex at Namrup, Assam, to be
developed as Assam Valley Fertilizer and Chemical Company Limited (AVFCCL).
Also, the Government also notified the
New Urea Policy (NUP) – 2015 on 25th May, 2015 for the existing 25 gas-based
urea units with one of the objectives of maximizing indigenous urea production beyond
RAC. The NUP-2015 has led to additional production of urea by 20-25 LMT as compared
to the production during 2014-15 annually.
As a result, urea production increased
from 225 LMT in 2014-15 to a record 314.07 LMT in 2023-24, while 293.30 LMT was
produced during 2025-26. Further, the National Investment Policy for Urea-2026 (NIPU-2026)
was approved on 15 July 2026 to promote fresh investments in the sector.
The Government has implemented Nutrient
Based Subsidy (NBS) Scheme w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K)
Fertilizers. Under the Scheme, P&K fertilizers are covered under Open General
License (OGL) and companies are free to import/manufacture these fertilizers as
per their business dynamics. For Kharif-2026, NBS rates have been approved for Rs.
41,533.81 Cr to ensure availability of P&K fertilizers under the scheme.
To reduce dependence on imported Phosphatic
fertilizers and make country self-reliant measures have been taken to encourage
domestic production through guidelines 18.01.2024 on reasonableness of MRP, wherein
importers/ manufacturers and integrated manufacturers are given reasonable profit
of 8%/10% and 12% respectively; based on the requests, the new manufacturing units
or increase in manufacturing capacity of existing units have been recognized / taken
on record under the NBS Scheme; the number of P&K fertilizers covered under
NBS Scheme has increased from 22 grades in 2021 to 28 grades; Freight Subsidy on
SSP, which is an indigenously manufactured fertilizer, is being provided since Kharif,
2022 to promote SSP usage for providing Phosphatic or 'P' nutrient to the soil.