Urea, DAP sales show marginal dip in June 2026 despite patchy monsoon

India's fertiliser sales dipped only marginally in June despite a weak monsoon, while easing global prices offered relief even as FY27 subsidy estimates remained elevated

Sales of major fertilisers be it urea, di-ammonium phosphate (DAP) or Muriate of Potash dropped only marginally in June 2026 as compared to same period last year despite a sharp nearly 37 per cent deficit in monsoon and more than 21 per cent drop in area under kharif crops, latest official data showed.

 

This several experts believe is also reflective of the fact that though monsoon played truant in June and there was not much activity in the fields farmers remained hopeful that overall the season might remain close to ‘normal,’.

 

The stocks of fertilisers were also adequate, data showed. Latest, official data showed that in June 2026, around 3.33 million tonnes of urea was sold in India, which was around 2.63 per cent lower than the same period last year, while around 0.81 million tonnes of DAP was sold which was around 1.22 per cent less than June 2025.

 

The data also showed than in June 2026, around 0.17 million tonnes of muriate of potash was sold, which was around 19.05 per cent less than the corresponding period of last year.  

 

Urea is majorly consumed during the kharif sowing season as it is extensively used in paddy and maize crops. Meanwhile, the official data also showed that though compared to May 2026, international price of all major fertilisers be it urea and DAP had come down sharply as the crisis engulfing the Strait of Hormuz showed signs of easing, but it was still higher than the same period last year. Between June 2025 and June 2026, international average price of urea was almost 45 per cent higher, while that of DAP was around 21.2 per cent more.

 

This should mean that though the lofty claims of high global fertiliser prices pushing up India’s fertiliser bill for 2027 to dizzying heights stands considerably eased between May 2026 and June 2026, but it will be still being higher than last year levels.

 

India had estimated the Fy-27 fertiliser subsidy to be around ₹1.7 trillion in February budget before the Iran war started.

 

Meanwhile, as per a latest paper from ICRIER, India's fertiliser subsidy could increase to ₹2.42 trillion under an optimistic scenario, which assumes a 2 percent decline in fertiliser consumption due to the anticipated El Niño conditions in 2026, while under a moderate stress scenario, the fertiliser subsidy is projected at ₹2.85 trillion, while under a prolonged disruption of the Strait of Hormuz, it could even go up to ₹3.32 trillion.