Urea production rises by 35% in the last 10 years, DAP and NPK increase by 44%: Government of India

The Government of India has reported significant growth in domestic fertilizer production over the last decade. Urea production, which stood at 22.715 million metric tonnes in 2013-14, has increased to 30.667 million metric tonnes in 2024-25, marking a 35 percent rise. Similarly, the combined production of DAP and NPK fertilizers has grown from 11.009 million metric tonnes to 15.878 million metric tonnes during the same period, reflecting a 44 percent increase.

The Department of Fertilizers (DoF) is responsible for ensuring timely and adequate availability of fertilizers to farmers. Ahead of every cropping season, the Department of Agriculture and Farmers Welfare (DA&FW) assesses state-wise requirements, based on which the DoF prepares monthly supply plans for states and fertilizer companies.

Fertilizer Supply Amid Global Challenges

Despite global disruptions, India has maintained steady fertilizer supplies. The ongoing crisis in the Red Sea has forced shipments to be diverted via the Cape of Good Hope, adding nearly 6,500 km to the route and causing delays, particularly in the supply of DAP. The Russia-Ukraine conflict and the Israel-Iran conflict have also contributed to price volatility in global fertilizer markets.

To address these challenges, the Government of India has secured supplies through diplomatic engagements, logistic arrangements, and long-term agreements (LTAs). Agreements with Morocco’s OCP Group have ensured 2.5 million metric tonnes of DAP and TSP supply. In addition, India and Saudi Arabia signed an agreement in July 2025 for the supply of 3.1 million metric tonnes of DAP annually for the next five years, starting 2025-26.

Adequate Availability in Kharif 2025

For Kharif 2025, fertilizer availability has remained satisfactory. Against the requirement of 14.3 million metric tonnes of urea, 18.3 million metric tonnes have been made available, of which 15.5 million metric tonnes have already been sold. In the case of DAP, the requirement was 4.5 million metric tonnes, while 4.9 million metric tonnes were made available, with 3.3 million metric tonnes sold. For NPK, the requirement was 5.8 million metric tonnes, while availability reached 9.7 million metric tonnes, with 6.45 million metric tonnes sold so far.

By August 20, 2025, urea sales were 1.3 million metric tonnes higher compared to the same period last year. The Department of Fertilizers has managed uninterrupted supply through increased domestic production and imports.

Subsidy Support for Farmers

To protect farmers from high international prices, the Government of India continues to provide heavy subsidies. The maximum retail price (MRP) for a 45-kg bag of urea is fixed at ₹242 (excluding neem-coating and taxes). Similarly, DAP is made available to farmers at ₹1,350 per bag through a special package covering cost compensation, GST refunds, profit margins, and price support against global fluctuations.

The government is also monitoring misuse and black marketing of fertilizers. Between April 2025 and August 2025, a total of 199,581 inspections and raids were conducted. This led to 7,927 show-cause notices, suspension or cancellation of 3,623 licenses, and registration of 311 FIRs under the Essential Commodities Act.

Source:AgNews