**Executive Summary**
The document responds to questions raised in the Lok Sabha regarding Urea imports and domestic production. It addresses concerns about increased Urea imports, decreased domestic production, and their impact on farmers. The response outlines government initiatives to stabilize prices, enhance domestic Urea production capacity, and reduce import dependence. The response date is 13.02.2026.
**Key Points / Main Content**
* **Urea Production and Import Data:**
* Urea production during April-November 2024-25 was 205.21 LMT, while imports were 32.55 LMT.
* During April-November 2025-26, production was 197.61 LMT, and imports increased to 71.71 LMT.
* **Reasons for Production Decline:**
* Two units of Nagarjuna Fertilizers and Chemicals Ltd. (NFCL) are under shutdown since June 2024 due to acquisition of their Ammonia-Urea assets.
* Kanpur Fertilizers and Chemicals Ltd. (KFCL) is under shutdown since April 1st, 2025.
* **Urea Subsidy Scheme:**
* Urea is provided to farmers at a subsidized Maximum Retail Price (MRP) of Rs.242 per 45 kg bag.
* The government provides a subsidy to manufacturers/importers to cover the difference between the delivered cost and net market realization.
* **Government Initiatives to Enhance Production:**
* The New Investment Policy (NIP) - 2012 and its amendments aim to facilitate fresh investment in the Urea sector.
* Six new Urea units have been set up under NIP-2012 (4 via Joint Venture Companies and 2 by private companies), adding a total capacity of 76.2 LMTPA.
* The total indigenous Urea production capacity (Reassessed Capacity, RAC) has increased from 207.54 LMTPA during 2014-15 to 283.74 LMTPA during 2023-24.
* An exclusive policy for the revival of the Talcher unit and a new Brownfield Ammonia-Urea Complex at Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) have been approved.
* The New Urea Policy (NUP) - 2015 aims to maximize indigenous Urea production.
* Urea Production during 2024-25 was 306.67 LMT.
**Impact Analysis**
**Stakeholder: Farmers**
* **Impact:**
* Farmers benefit from subsidized Urea prices.
* They are potentially affected by import dependence leading to price pressures and supply disruptions.
* **Action Required:**
* Continue purchasing Urea at subsidized rates.
**Stakeholder: Urea Manufacturers/Importers**
* **Impact:**
* They receive subsidies from the government to cover the difference between the delivered cost and net market realization of Urea.
* **Action Required:**
* Adhere to the Urea Subsidy Scheme guidelines.
**Stakeholder: Government of India**
* **Impact:**
* Responsible for managing the Urea supply and subsidy scheme.
* Needs to address declining domestic production and increasing import dependence.
* **Action Required:**
* Continue implementing and monitoring policies to enhance domestic Urea production capacity and reduce import dependence.
Key Entities Referenced
Urea Subsidy Scheme: A scheme to provide urea to farmers at a subsidized rate.
New Urea Policy (NUP) – 2015: A policy for existing gas-based urea units with the objective of maximizing indigenous urea production.
Ministry of Chemicals & Fertilizers: The primary ministry responsible for addressing the urea import and production issues.
New Investment Policy (NIP) – 2012: A policy to facilitate fresh investment in the Urea sector and to make India self-sufficient in the Urea sector.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS & FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO. 2441 TO BE ANSWERED ON 13.02.2026
Import of Urea
2441: Shri K E Prakash:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) whether the Government has taken note of the data of the Fertilizer Association
of India indicating that Urea imports more than doubled to about 7.17 million
tonnes during April-November 2025-26 compared to the corresponding period of
the previous year, while domestic Urea production declined during the same
period, if so, the details thereof;
(b) the reasons for the decline in domestic Urea production despite repeated
assurances of achieving self-reliance in fertilizers;
(c) whether the increasing dependence on Urea imports has led to price pressures
and exposes the farmers in the country to global supply disruptions and volatility,
if so, the details thereof;
(d) whether the Government has taken note of the impact of higher Urea prices on
farmers in agrarian constituencies, including Erode Parliamentary Constituency
in the State of Tamil Nadu, if so, the details thereof; and
(e) the policy measures being taken to stabilise prices, enhance domestic Urea
production capacity and reduce import dependence in a time-bound manner?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a): The details of the production and import of Urea in the country during April-
November 2024-25 and April-November 2025-26 are tabulated below:
Year Production of Urea Import of Urea
(in LMT) (in LMT)
2024-25 (Apr-Nov) 205.21 32.55
2025-26 (Apr-Nov) 197.61 71.71(b): The two units of Nagarjuna Fertilizers and Chemicals Ltd. (NFCL-Unit I & II) at
Kakinada with each having a production capacity of 5.97 LMT per annum are under
shutdown w.e.f 5th June 2024 and 1st June 2024 respectively on account of
purchasing of Ammonia-Urea assets of NFCL by AM Green Ammonia (India) Private
Ltd. under SARFEASI process from Asset Reconstruction Enterprise Private Ltd.
(ACRE).
Further, the Kanpur Fertilizers and Chemicals Ltd. (KFCL)-Kanpur with a production
capacity of 7.22 LMT per annum is under shutdown w.e.f 1st April 2025.
(c) to (e): Under the Urea Subsidy Scheme, Urea is provided to the farmers at a
statutorily notified Maximum Retail Price (MRP). The MRP of 45 kg bag of urea is
Rs.242 per bag (exclusive of charges towards neem coating and taxes as applicable).
The difference between the delivered cost of urea at farm gate and net market
realization by the urea units is given as subsidy to the urea manufacturer/importer by
the Government of India. Accordingly, all farmers across the country are being
supplied urea at the subsidized rate.
With regard to Urea, the Government had announced New Investment Policy (NIP) –
2012 on 2nd January, 2013 and its amendment on 7th October, 2014 to facilitate fresh
investment in the Urea sector and to make India self-sufficient in the Urea sector.
Total 6 new Urea units have been set up under NIP-2012 which includes 4 Urea units
set up through Joint Venture Companies (JVC) of nominated PSUs and 2 Urea units
set up by the private companies. 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. Each of these units has installed capacity of
12.7 Lakh Metric Tonne per annum (LMTPA). These units are highly energy efficient
as they are based on latest technology. Therefore, these units have together added
Urea production capacity of 76.2 LMTPA, thereby total indigenous Urea production
capacity (Reassessed Capacity, RAC) has increased from 207.54 LMTPA during
2014-15 to 283.74 LMTPA during 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 which will be named as 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.
***