Urea Policy

India's urea import has more than doubled to 58.62 lakh tonnes during April-October this year to meet domestic demand, the government on Monday said, while asserting that it has ensured adequate supply of fertilizers to farmers in the summer sowing season. "Between April and October 2025, India imported 58.62 lakh tonnes of agricultural-grade urea, compared to 24.76 lakh tonnes during the same period in the previous year," the Ministry of Chemicals and Fertilizers said in a statement. Further, imports of 17.5 lakh tonnes are already lined up for November and December, it added. The Department of Fertilizers said it has ensured adequate availability of fertilizers, including urea, across the country during the kharif 2025 season. The government ensured that farmers received the required quantities of urea without any shortage. The availability of urea was 230.53 lakh tonnes, as against the projected requirement of 185.39 lakh tonnes. Sales stood at 193.20 lakh tonnes. "This reflect

Clarification comes amid concerns of a massive shortage of urea and DAP across India

Nano urea sales dropped by a steep 43.2 per cent in FY24 from the previous year, despite production capacity rising by almost 59 per cent in that period

In the pre-Budget consultations with the finance minister, the agri sector had sought rationalisation of fertiliser subsidies and hike in investment for agricultural research.

India's conventional urea consumption is estimated to decline 25 lakh tonnes this fiscal on increase in demand of nano liquid urea and the government's efforts to discourage use of chemical fertilisers, Union Minister Mansukh Mandaviya said on Friday. Chemicals and Fertilisers Minister Mansukh Mandaviya also highlighted that the Cabinet on Thursday approved a Rs 24,420 crore subsidy on Phosphatic and Potassic (P&K) fertilisers for the kharif season. The prices of all fertilisers, including urea and Di-ammonium phosphate (DAP), will not increase, he said. "The Modi government has made a lot of efforts to promote alternate fertilisers and discourage use of chemical fertilisers. The use of nano liquid urea is also gaining momentum," Mandaviya said. As a result, the minister said, "The consumption of urea in 2023-24 is estimated to decline by 25 lakh tonnes." Mandaviya said the urea consumption stood at 357 lakh tonnes during FY23. "During April-January period of this fiscal, the ...

Urea demand could re-emerge in a big way for the 2024 kharif season from May and June with the advent of monsoon

But it could push up global rates

In the course of their inspections, the squads have registered 30 FIRs for illegal diversion of urea, confiscating 70,000 bags in the process

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New urea policy is showing encouraging results

The Union Cabinet is believed to have approved a proposal to allow 14 urea units, which could not meet the new energy norms under the 2015 policy, to continue with the existing norms till March 2023, sources said. According to sources, the existing energy norms for 14 urea manufacturing units have been extended for further period till 31st March, 2023. Some penalty has been imposed while giving an extension. These plants have been directed to meet the energy norm by March 2023. The extension of present energy norms will ensure easy availability of urea to farmers through domestic production, they added. The New Urea Policy-2015 (NUP-2015) was notified by the Department of Fertilizers on 25th May, 2015 with the objective of maximising indigenous urea production, promoting energy efficiency in urea production and rationalising subsidy burden on the government. The NUP-2015 covers 25 gas-based existing urea units. As per NUP-2015, the existing gas-based urea units were classified int

The commissioning of new plants is expected to bring down import dependency to less than half of current levels

Per year, about 1-1.2 million tonnes of urea meant for farming gets diverted towards industrial use, say officials

Sources said a cumulative impact of Rs 5,600 crore could be released to the fertilizer companies as result of the Cabinet decision

Supplies to farmers in Madhya Pradesh accounted for just half the requirement of 400,000 bags of urea this November, even as mounting inventories incurred losses for companies

It's a distinct possibility in the near future

Changes in urea policy

The import price parity calculation has been changed to include customs and port handling charges