India Lowers Fertilizer Demand Forecast Due to Below Normal Monsoon
India Cuts Fertilizer Demand on Weak Monsoon Forecast

The Indian government has revised its estimates for fertilizer consumption during the Kharif sowing season downward, following the India Meteorological Department's forecast of a below-normal monsoon. A top official stated on Monday that the demand for urea is now projected at 190 lakh tonnes, down from the earlier estimate of 194 lakh tonnes. Similarly, the demand for Diammonium Phosphate (DAP), another key soil nutrient, has been reduced to 60 lakh tonnes from the previous estimate of 66 lakh tonnes.

Reassessment Due to El Nino

Aparna Sharma, Additional Secretary in the Fertiliser Department, explained that given the anticipated El Nino effect, the department requested the Ministry of Agriculture to reassess the requirements. Based on regular interactions between the ministry and state governments, the revised demand figures for urea and DAP have been communicated.

Global Tender for Urea Imports

The official also revealed that the government has floated a second global tender for the import of 17 lakh tonnes of urea, despite a sharp rise in global prices, to boost domestic supplies for the Kharif season. Sharma noted that the global price of urea has surged from $447 per tonne in February to $947 per tonne.

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Surplus Stocks of Food Grains

Officials from the Consumer Affairs and Food Departments reported that there are surplus stocks of rice, wheat, and pulses to meet domestic demand and for market intervention. Anupam Mishra, Additional Secretary in the Consumer Affairs Department, stated that the buffer stock of pulses with the government stands at approximately 43 lakh tonnes, more than double the stocks recorded in May 2025.

Horticultural Crop Production

Mishra added that production of major horticultural crops such as potato, tomato, and onion is sufficient to meet domestic demand. Potato production is estimated at 584 lakh tonnes, compared to 586 lakh tonnes in the previous crop year; tomato production at 227 lakh tonnes, up from 205 lakh tonnes; and onion production at 273 lakh tonnes, down from 307 lakh tonnes last year.

Onion Buffer Stock Target

The government has set a target to create a buffer stock of 2 lakh tonnes of onion for the 2026-27 period.

Wheat and Rice Stocks

Food Department officials indicated that as of May 2026, wheat stock in the central pool was 513 lakh tonnes, nearly double the prescribed buffer norm for July 1. Wheat procurement during the current Rabi marketing season has reached approximately 350 lakh tonnes, with procurement operations continuing until June 30. The rice stock in the central pool stands at 397 lakh tonnes, almost three times the required buffer stock for July 1.

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