India is set to add 25.4 lakh tonnes to its annual urea production capacity with two new fertilizer plants expected to start operations soon, a move the government says will boost domestic availability and reduce dependence on imports, PTI reported.The announcement comes as India continues its efforts to promote self-sufficiency in fertilizers while protecting farmers from global supply disruptions and price volatility.According to a statement issued by the Ministry of Chemicals and Fertilizers, six new mega plants for urea have already been established since 2014, adding a combined annual capacity of 76.2 thousand tons.“Two more high-capacity urea plants with a combined annual capacity of 25.4 thousand tons are scheduled to start production soon,” the ministry said.India imported over 100 lakh tonnes of urea during the financial year 2025-26.The ministry said that local urea production rose from 225,000 tons in 2014-2015 to a record high of 314.07 thousand tons in 2023-2024. Production reached 306.67 thousand tons in 2024-25.The production of phosphate and potash (P&K) fertilizers also reached a record high of 211.22 thousand tons in 2024-2025, compared to 159.54 thousand tons in 2014-2015.She added that public and private sector companies continue to expand their capacity through P&K’s new fertilizer projects.
Highlighting efforts to secure fertilizer supplies amid geopolitical turmoil, the ministry said the authorities have taken steps to address logistical challenges arising from tensions in West Asia.“Despite the intense geopolitical conflicts in West Asia that have caused skyrocketing prices, severe natural gas shortages, and major delays in shipping lines, the government has launched a proactive response to the war to ensure smooth fertilizer sufficiency,” the ministry said.“To address shipping delays around the Strait of Hormuz, the government quickly explored alternative transit routes and cooperated with diplomatic channels to obtain materials directly from global producers,” she added.The government said that the availability of fertilizers is still sufficient for the planting season this fall.
Subsidies continue to be supported
The ministry said that the center absorbed the impact of rising global fertilizer prices to ensure that retail prices for farmers remained unchanged.“The Modi government has kept farmers’ interests first by absorbing international inflationary shocks. While geopolitical conflicts have pushed up global prices, retail fertilizer prices for Indian farmers have not risen by a single paise,” the report said.According to the ministry, a 45 kg bag of urea continues to be sold at a subsidized price of Rs 266.50 despite international prices exceeding Rs 4,100 per bag.Likewise, DAP (diammonium phosphate) is sold at Rs 1,350 per 50 kg bag against a global price of around Rs 5,000 per bag.“India’s fertilizer security remains strong, stable and well-managed, with availability consistently exceeding requirements in all major fertilisers,” the ministry said.