**Executive Summary**
This report details the Government of India's strategic initiatives to achieve self-reliance in the fertilizer sector and reduce import dependence. Key highlights include record urea production reaching 314.07 LMT in 2023-24 and the securing of long-term raw material agreements for 2025-26. The document outlines ongoing policy frameworks, such as the Nutrient Based Subsidy (NBS) and the New Urea Policy-2015, aimed at ensuring adequate supply and price stability.
**Key Points / Main Content**
**Urea Production and Capacity Expansion**
* Under the New Investment Policy (NIP)-2012, six new urea units have added 76.2 LMTPA to national capacity.
* Total indigenous urea capacity increased from 207.54 LMTPA in 2014-15 to 283.74 LMTPA in 2023-24.
* Approvals have been granted for a new Greenfield Urea plant at Talcher (12.7 LMTPA) using coal gasification and a Brownfield Ammonia-Urea Complex at Namrup, Assam (12.7 LMTPA).
* The New Urea Policy (NUP)-2015 for gas-based units has generated an additional 20-25 LMT of urea annually beyond reassessed capacity.
**Phosphatic and Potassic (P&K) Fertilizers**
* The NBS Scheme, effective since April 2010, allows companies to import or manufacture P&K fertilizers under the Open General License (OGL).
* The number of P&K fertilizer grades covered under the NBS policy was expanded from 22 in 2021 to 28.
* A freight subsidy for Single Super Phosphate (SSP) was approved starting Kharif 2022 to promote domestic phosphatic nutrients.
* New guidelines were issued on January 18, 2024, to ensure the reasonableness of Maximum Retail Prices (MRP) and encourage domestic production.
**Raw Material Security and Import Substitution**
* Long-Term Agreements (LTAs) and MoUs have been secured for 2025-26 to ensure the supply of Rock Phosphate, Phosphoric Acid, and Ammonia from resource-rich nations including Jordan, Morocco, Saudi Arabia, and Japan.
* Urea production reached a record 314.07 LMT in 2023-24, with 306.67 LMT produced in 2024-25.
**Supply Chain Management**
* The Department of Agriculture and Farmers Welfare (DA&FW) assesses state-wise fertilizer requirements before each cropping season.
* The movement of subsidized fertilizers is tracked via the web-based integrated Fertilizer Management System (iFMS).
* The Department of Fertilizers issues monthly supply plans and monitors availability through weekly joint video conferences with state officials.
**Impact Analysis**
**Indian Fertilizer Companies**
**Impact**
Companies benefit from increased indigenous capacity, inclusion of new manufacturing units under the NBS scheme, and government-facilitated long-term raw material security through international MoUs.
**Action Required**
Companies must enter into LTAs for raw materials and adhere to the January 2024 guidelines regarding the reasonableness of MRP.
**State Governments**
**Impact**
States are integrated into the national planning process for fertilizer requirements and are responsible for final distribution.
**Action Required**
State governments must project their month-wise fertilizer requirements to the DA&FW and manage the internal distribution of fertilizers within their respective borders.
**Department of Fertilizers / DA&FW**
**Impact**
These bodies are tasked with the administrative and logistical oversight of the national fertilizer supply chain.
**Action Required**
They must continuously monitor availability via the iFMS, conduct weekly video conferences with state officials, and allocate quantities based on projected requirements.
Key Entities Referenced
Nutrient Based Subsidy (NBS) Scheme: A government policy implemented to provide subsidies for Phosphatic and Potassic (P&K) fertilizers, ensuring supply flexibility and encouraging domestic production.
New Urea Policy (NUP) – 2015: A policy framework aimed at maximizing indigenous urea production for gas-based units and reducing India's dependence on fertilizer imports.
New Investment Policy (NIP) – 2012: A policy and its 2014 amendment that facilitated the establishment of six new urea units to significantly enhance domestic production capacity.
integrated Fertilizer Management System (iFMS): An online web-based monitoring system used to track the movement and availability of major subsidized fertilizers across the country.
Department of Fertilizers: The primary government department responsible for issuing production guidelines, allocating fertilizer quantities to states, and monitoring supply security.
Ministry of Chemicals and Fertilizers :
Department of Fertilizers
India Achieving Record Fertilizer Production;
Indigenous Urea Capacity Surges to 283.74
LMTPA Under Atmanirbhar Bharat Initiatives
Government Ensures Flexibility in P&K Fertilizers Supplies
Through Nutrient Based Subsidy (NBS) Scheme
Posted On: 24 MAR 2026 6:07PM by PIB Delhi
The Government of India has taken significant measures to reduce import dependence in the fertilizer sector by enhancing domestic
production capacity and securing long-term raw material supply. In a written reply to a question in the Rajya Sabha today, Smt. Anupriya S.
Patel, MoS Chemicals & Fertilizers, informed that under the New Investment Policy (NIP)–2012 and its amendment in 7th October, 2014 six
new urea units have been established, including four joint venture units of public sector undertakings and two units by private companies.
Together, these units have added 76.2 lakh metric tonnes per annum (LMTPA) of urea production capacity, raising the total indigenous
capacity from 207.54 LMTPA in 2014-15 to 283.74 LMTPA in 2023-24. Further, an exclusive policy for the revival of Talcher unit of FCIL
through JVC of nominated PSUs namely Talcher Fertilizers Limited (TFL) by setting up a new Greenfield Urea plant of 12.7 LMTPA at coal
gasification route has also been approved. Recently, the Union Cabinet has approved the proposal for setting up of a new Brownfield
Ammonia-Urea Complex of 12.7 Lakh Metric Tonnes (LMT) annual capacity of Urea production within the existing premises of
Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup, Assam namely Assam Valley Fertilizer and Chemical Company Ltd.
(AVFCCL).
In addition, 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.
Above steps together have facilitated increase of Urea production from level of 225 LMT per annum during 2014-15 to a record Urea
Production at 314.07 LMT during 2023-24. During 2024-25, 306.67 LMT of Urea was produced in the country.
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.
To reduce dependence on imported Phosphatic fertilizers and make country self-reliant the following measures have been taken by the
Government:
I. D/o Fertilizers has issued guidelines 18.01.2024 to ensure reasonableness of MRP and encourage domestic production.
II. 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.
III. The number of P&K fertilizers covered under NBS policy has increased from 22 grades in 2021 to 28 grades.
IV. Freight Subsidy on SSP, which is an indigenously manufactured fertilizer, has been approved since Kharif, 2022 to promote SSP
usage for providing Phosphatic or 'P' nutrient to the soil.
Further, to strengthen supply security for the import of raw materials, Government facilitates Indian fertilizer companies in entering into
Long Term Agreements (LTAs) and Memoranda of Understanding (MoUs) with resource-rich countries. In line with the above, Indian
companies have secured agreements for 2025-26 covering Rock Phosphate from Jordan, Morocco, Togo, and Mauritania; Phosphoric Acid
from Morocco, Tunisia, and Senegal; and Ammonia from Saudi Arabia, Oman, Japan, and Malaysia.
The details of the domestic production of Urea, DAP and other fertilizers under import substitution initiatives during the last three years,
year-wise is as below:
YEAR-WISE PRODUCTION OF MAJOR FERTILIZERSProduction (Fig. in LMT)
YEAR Urea DAP SSP NPKs
2022-23 284.94 43.47 56.44 100.40
2023-24 314.09 42.93 44.44 101.85
2024-25 306.67 37.69 52.44 121.05
The availability of fertilizers viz. Urea, DAP, MOP and NPK has remained adequate in the country during the last three FYs i.e. 2022-23,
2023-24 and 2024-25 and current year 2025-26. The information regarding requirement, availability and sales of these fertilizers during the
said period is placed at Annexure.
Further, the following Steps are taken by the Government every season for ensuring timely and adequate supply of fertilizers in the country:
I. Before the commencement of each cropping season, Department of Agriculture and Farmers Welfare (DA&FW), in
consultation with all the State Governments, assesses the State-wise & month-wise requirement of fertilizers.
II. On the basis of requirement projected by DA&FW, D/o Fertilizers allocates adequate quantities of fertilizers to States by
issuing monthly supply plan and continuously monitors the availability.
III. The movement of all major subsidized fertilizers is monitored throughout the country by an on-line web based monitoring
system called integrated Fertilizer Management System (iFMS).
IV. Regular Weekly Video Conference is conducted jointly by DA&FW and D/o Fertilizers with State Agriculture Officials and
corrective actions are taken to dispatch fertilizers as indicated by the State Governments.
V. The distribution of fertilizers within the State is done by the respective State Government.
Annexure
ANNEXURE referred to in reply to part (c) of Rajya Sabha Unstarred Q. No. 3550 for answering on 24/03/2026
ALL INDI
REQUIREMENT, AVAILABILITY & SALES OF FER
Fig. in LMT
UREA DAP
S.No State Requirement Availability DBT Requirement Availability DBT
Sales Sales
2025-26 375.18 439.87 387.51 109.39 120.41 98.57
(Till
1
18.03.26)
2024-25 364.01 443.83 387.92 111.92 105.14 96.29
22023-24 356.08 437.47 357.81 110.18 127.42 109.73
3
2022-23 359.19 415.82 357.26 114.20 130.93 105.31
4
1. Indicator of comfortable availability: Availability >Requirement
2. Secondary Indicator of comfortable availability: Availability > Sales
******
Neeraj Kumar Bhatt/ Amit Kumar/ Shatrughna Prasad
cmc.fertilizers[at]gmail[dot]com
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