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Date: 2025-08-22 Category: Not Applicable State: Union Government Country: India

Fertilizers Scenario in the Country

Issued by Ministry of Chemicals and Fertilizers · Not Applicable

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## Policy Summary: Ensuring Fertilizer Availability and Supporting Farmers in Kharif 2025 The Department of Fertilizers (DoF), under the Ministry of Chemicals and Fertilizers, is committed to ensuring the timely and adequate availability of fertilizers across India. This commitment is achieved through scientific planning, robust production growth, and subsidy support, ultimately strengthening Atmanirbharta (self-reliance) and securing farmers' long-term fertilizer needs. **Key Highlights:** * **Increased Domestic Production:** Urea production has increased by 35% from 227.15 LMT in 2013-14 to 306.67 LMT in 2024-25. Combined DAP and NPK fertilizer production has grown by 44% from 110.09 LMT to 158.78 LMT during the same period. * **Strategic Global Partnerships:** The government has proactively addressed global supply chain disruptions through diplomatic engagements and long-term arrangements. Key initiatives include securing 2.5 LMT of DAP and TSP from Morocco and a Long-Term Agreement (LTA) with Saudi Arabia for the annual supply of 3.1 LMT of DAP for five years, starting in 2025-26. * **Comfortable Availability in Kharif 2025:** Fertilizer availability has remained comfortable during the Kharif 2025 season. Urea availability is 183 LMT against a prorata requirement of 143 LMT, with sales of 155 LMT. DAP availability is 49 LMT against a prorata requirement of 45 LMT, with sales of 33 LMT. NPK availability is 97 LMT against a prorata requirement of 58 LMT, with sales of 64.5 LMT. * **Addressing Increased Demand:** Urea sales have increased by over 13 LMT compared to the same period last year, and the DoF has ensured uninterrupted availability through maximized domestic production and global procurement. * **Farmer-Centric Policies and Subsidies:** The government provides substantial subsidies to make fertilizers available to farmers at affordable rates. Urea is available at a statutorily notified MRP of Rs. 242 per 45 kg bag (excluding neem coating and taxes). A special package ensures DAP availability at Rs 1350/bag. * **Enforcement and Monitoring:** The DoF coordinates with State Governments, Port Authorities, the Ministry of Railways, and fertilizer companies to address potential bottlenecks. Stringent enforcement measures are in place to prevent black marketing, hoarding, overpricing, and diversion of fertilizers. Since April 2025, 199,581 inspections/raids have been conducted, 7,927 show cause notices issued, 3,623 licenses cancelled/suspended, and 311 FIRs registered under the EC Act. * **Global Challenges:** The prevalent geopolitical situation, including the Red Sea crisis and the Russia-Ukraine and Israel-Iran wars, has impacted fertilizer supplies and prices. Shipments have been rerouted via the Cape of Good Hope, increasing voyage times and costs.

Key Entities Referenced

Ministry of Chemicals and Fertilizers: The ministry responsible for fertilizers in India. Department of Fertilizers: The department within the Ministry of Chemicals and Fertilizers responsible for ensuring fertilizer availability. Department of Agriculture and Farmers Welfare: The department responsible for assessing Statewise fertilizer requirements. Urea: A nitrogen-based fertilizer. DAP: Diammonium Phosphate, a widely used phosphatic fertilizer. NPK: Nitrogen, Phosphorus, and Potassium fertilizer. Kharif 2025: The Kharif cropping season of 2025 in India. Saudi Arabia: Country which signed Long Term Agreement LTA with Indian companies for the annual supply of 31 LMT of DAP
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Ministry of Chemicals and Fertilizers Fertilizers Scenario in the Country Department of Fertilizers Ensures Timely and Adequate Fertilizer Availability through Scientific Planning, Robust Production Growth and Subsidy Support Record 35% Rise in Urea and 44% Growth in DAP/NPK Production, along with Strategic Global Partnerships, Strengthen Atmanirbharta and Secure Farmers’ Long-Term Fertilizer Needs Comfortable Fertilizer Availability Maintained in Kharif 2025; Higher Sales Met Without Shortages amid Global Disruptions Strong Governance, Enforcement and Farmer- Centric Policies Reaffirm Government’s Commitment to Farmers’ Welfare and National Food Security Posted On: 22 AUG 2025 5:07PM by PIB Delhi 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 yearsstarting 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 th season so far. It is noteworthy to mention that as of 20 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. *** MV/GS (Release ID: 2159809)

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