India is poised to increase its annual urea production capacity by 25.4 lakh tonnes as two new fertiliser plants are expected to commence operations shortly. This development, reported by PTI, is part of the government's strategy to strengthen domestic availability and reduce dependence on imports.
The announcement comes amid India's ongoing efforts to achieve fertiliser self-sufficiency while shielding farmers from global supply disruptions and price volatility. According to a statement from the Ministry of Chemicals and Fertilizers, six new mega urea plants have been established since 2014, adding a combined annual capacity of 76.2 lakh tonnes.
"Two more high-capacity urea plants with a combined annual capacity of 25.4 lakh tonnes are set to commence production shortly," the ministry said. India imported more than 100 lakh tonnes of urea during the 2025-26 fiscal year.
The ministry highlighted that domestic urea production increased from 225 lakh tonnes in 2014-15 to a record 314.07 lakh tonnes in 2023-24. Production stood at 306.67 lakh tonnes in 2024-25. Additionally, Phosphatic and Potassic (P&K) fertiliser production reached a record 211.22 lakh tonnes in 2024-25, compared with 159.54 lakh tonnes in 2014-15.
Public and private sector companies are continuing to expand capacity through new P&K fertiliser projects. Addressing efforts to secure fertiliser supplies amid geopolitical disruptions, the ministry said authorities took steps to resolve logistics challenges arising from tensions in West Asia.
"Despite severe geopolitical conflicts in West Asia causing skyrocketing prices, acute shortages of natural gas, and heavily delayed shipping lines, the Government has mounted a proactive, war-footing response to ensure seamless fertiliser sufficiency," the ministry stated. "To address shipping delays around the Strait of Hormuz, the government rapidly explored alternative transit routes and engaged diplomatic channels to source materials directly from global producers."
The government confirmed that fertiliser availability remains adequate for the ongoing kharif sowing season. Subsidy support continues, with the Centre absorbing the impact of rising global fertiliser prices to keep retail prices unchanged for farmers.
"The Modi government has kept the interests of the farmers paramount by absorbing international inflationary shocks. While geopolitical conflicts have sent global prices soaring, the retail price of fertilisers for Indian farmers has not been raised by a single paisa," the ministry said. A 45-kg bag of urea continues to be sold at a subsidised price of Rs 266.50 despite global prices exceeding Rs 4,100 per bag. Similarly, DAP (di-ammonium phosphate) is sold at Rs 1,350 for a 50-kg bag against a global price of around Rs 5,000 per bag.
"India's fertiliser security remains strong, stable, and well-managed, with availability consistently exceeding requirements across all major fertilisers," the ministry added.
