Fertiliser stocks adequate, subsidy outgo may be reassessed: Govt

The government on Thursday asserted that the fertilisers stocks in the country is comfortable to meet the demand for the ongoing kharif season and said the subsidy estimates for the current fiscal could be reassessed considering the softening of urea prices in the global markets.

At an inter-ministerial briefing on recent developments in West Asia, Aparna S Sharma, additional secretary in the Union Ministry of Chemicals and Fertilisers, said, "The stock position of fertilisers in the country is comfortable. India's fertilizer security remains as strong as ever."  Asked whether the Rs 3.4 lakh crore fertiliser subsidy estimates for 2026-27 would be revised downward due to a fall in global prices, she said the preliminary subsidy estimate was based on the presumption that the trend remains the same.

 

"But, as a result of the recent tender that has been done on behalf of the government by our one of our entities will definitely have cause to reassess the subsidy figures, and we will have a re-look on that," Sharma said.

However, the additional secretary said that the reassessment would depend on the confirmation of the quantities offered by the suppliers and also the total imports.

State-owned National Fertilizers Ltd, which recently floated a tender to import 1.7 million tonnes of urea, has received bids for over 6 million tonnes with the lowest rate of about USD 445 per tonne from global trading companies, according to sources.

The rates offered in this latest tender are more than 50 per cent lower than the prices quoted in the tender floated by Indian Potash Ltd (IPL) in April, due to a fall in global urea prices.

The fall in global urea prices may help in containing the increase in fertiliser subsidy and also securing the soil nutrients for the rabi (winter-sown) season.

Earlier this week, the government sources said that the fertiliser ministry has approached the finance ministry to increase the fertiliser subsidy by 100 per cent from the Rs 1.71 lakh crore budgeted for the 2026-27 fiscal.

Regarding the fall in global prices of urea, Sharma said the new countries have come into the market for exports, boosting global supply and added that India's strong stock position and seamless domestic production could be the factors impacting rates.

"The reduction of the prices is because of entry of new countries into the market, and they have entered in a big way. So with this, the prices have come down sharply. Moreover, our stock position and our production is going on seamlessly. So maybe that is also an indication to the countries from whom we are importing that we may not need and our requirement may come down also," she said.

Sharma said there could be a number of factors, including India's consumption and stock position. "These are also related, and because of this, the prices may have been impacted. So, let's see how this trend continues."  On the query related to further import requirements for the Kharif season, Sharma said this would depend on domestic production.

"We may import about 10 lakh tonnes or 20 lakh tonnes more. We will also keep an eye on our stock. In view of the threat of the monsoon, whatever has been predicted, so that will guide us through the Kharif season for our imports. So, as of now, we cannot just give any figures," she said.

For kharif 2026, the fertiliser requirement has been reassessed by the Department of Agriculture at 383.9 lakh tonnes and against this, the stock is 197.56 lakh tonnes.

"The long-term supply agreements for inputs and finished fertilizers have played a great role in ensuring supplies. Moreover, we have a number of joint ventures, and through our missions abroad, we have been actively pursuing for engagement of other countries," Sharma said.

The additional secretary said that the domestic production is going on as per the availability of gas.

Post crisis, she said, the domestic production of urea has been 71.41 lakh tonnes, DAP about 10.04 lakh tonnes, the NPK complexes 22.96 lakh tonnes, and SSP about 14 lakh tonnes. So approximately 153.79 lakh tonnes of fertilizers through imports as well as domestic production have been added to our stock.

"In coordination with our 28 missions abroad, the country has secured supplies of urea from Oman, Malaysia, Vietnam, Georgia, Nigeria, Russia, Finland, Egypt, Algeria, Turkey, and the Netherlands. The DAP and NPKs have also been procured from various sources out of SOH, like Russia, Morocco, Egypt, USA, Jordan, South Korea, Tunisia, and from Saudi Arabia via Red Sea," Sharma said.

The country's urea production has increased from 225 lakh tonnes during 2014-15 to 306.67 lakh tonnes in 2024-25.

At present, the MRP of neem-coated urea is Rs 242 per bag (45kg), while the DAP is being sold at Rs 1,350 per bag (50kg).

Total domestic production of fertilizers, including urea, DAP, NPKs, and SSP, has increased from 433.29 lakh tonnes in 2021 to a record 524.62 lakh tonnes in 2025. Nearly 73 per cent of the country's total fertilizer requirement last calendar year was met through domestic production.