Fertiliser push: Two new urea plants to start production soon; govt says import dependence set to ease
India is set to add 25.4 lakh tonnes of annual urea production capacity with two new fertiliser plants expected to begin operations shortly, a move the government says will strengthen domestic availability and reduce reliance on imports, PTI reported.The announcement comes as India continues efforts to boost fertiliser self-sufficiency while shielding farmers from global supply disruptions and price volatility.According to a statement issued by the Ministry of Chemicals and Fertilizers, six new mega urea plants have already been established since 2014, adding a combined annual capacity of 76.2 lakh tonnes.“Two more high-capacity urea plants with a combined annual capacity of 25.4 lakh tonnes are set to commence production shortly,” the ministry said.India imported more than 100 lakh tonnes of urea during the 2025-26 fiscal year.The ministry said domestic urea production increased from 225 lakh tonnes in 2014-15 to a record 314.07 lakh tonnes in 2023-24. Production stood at 306.67 lakh tonnes in 2024-25.Phosphatic and Potassic (P&K) fertiliser production also touched a record 211.22 lakh tonnes in 2024-25, compared with 159.54 lakh tonnes in 2014-15.Public and private sector companies are continuing to expand capacity through new P&K fertiliser projects, it added.Highlighting efforts to secure fertiliser supplies amid geopolitical disruptions, the ministry said authorities took steps to address logistics challenges arising from tensions in West Asia.“Despite severe geopolitical conflicts in West Asia causing skyrocketing prices, acute shortages of natural gas, and heavily delayed shipping lines, the Government has mounted a proactive, war-footing response to ensure seamless fertilizer sufficiency,” the ministry said, PTI quoted.“To address shipping delays around the Strait of Hormuz, the government rapidly explored alternative transit routes and engaged diplomatic channels to source materials directly from global producers,” it added.The government said fertiliser availability remains adequate for the ongoing kharif sowing season.
Subsidy support continues
The ministry said the Centre has absorbed the impact of rising global fertiliser prices to ensure that retail prices for farmers remain unchanged.“The Modi government has kept the interests of the farmers paramount by absorbing international inflationary shocks. While geopolitical conflicts have sent global prices soaring, the retail price of fertilisers for Indian farmers has not been raised by a single paisa,” it said.According to the ministry, a 45-kg bag of urea continues to be sold at a subsidised price of Rs 266.50 despite global prices exceeding Rs 4,100 per bag.Similarly, DAP (di-ammonium phosphate) is being sold at Rs 1,350 for a 50-kg bag against a global price of around Rs 5,000 per bag.“India’s fertiliser security remains strong, stable, and well-managed, with availability consistently exceeding requirements across all major fertilisers,” the ministry said.
