New Delhi: The Centre has undertaken a series of measures to strengthen domestic fertiliser production, diversify raw material and import sources, and ensure uninterrupted availability of fertilisers to farmers despite global supply disruptions and volatility in international markets, according to an official statement issued on Tuesday.
While India’s domestic urea production capacity has risen to 269.42 lakh metric tonnes per annum (LMTPA) with the recent construction of six new urea plants adding 76.2 LMTPA capacity, the government has also secured 42.7 LMT of urea through global tenders to provide adequate stocks to farmers, the statement said.
Domestic production is influenced by factors such as availability of raw materials and feedstocks, international price fluctuations and technical shutdowns. To address these challenges, the government diversified sourcing and secured 25 LMT and 17.7 LMT of urea through global tenders in April 2026 and June 2026, respectively.
To ensure timely fertiliser availability, the Department of Agriculture & Farmers Welfare, in consultation with State Governments, assesses seasonal fertiliser requirements, while the Department of Fertilisers allocates supplies through monthly plans and monitors movement through the Integrated Fertiliser Management System (iFMS).
Weekly review meetings with State officials and advance imports further help maintain uninterrupted supplies, the statement explained.
Under the New Investment Policy (NIP)-2012, the government commissioned six new urea plants, each with a capacity of 12.7 LMTPA, adding 76.2 LMTPA to the country’s production capacity. These include four joint venture plants, the Ramagundam unit of Ramagundam Fertilisers and Chemicals Ltd (RFCL) in Telangana, and three units of Hindustan Urvarak & Rasayan Limited (HURL) at Gorakhpur, Sindri, and Barauni in Uttar Pradesh, Jharkhand, and Bihar.
The privately set-up units are the Panagarh unit of Matix Fertilisers and Chemicals Ltd in West Bengal and Gadepan-III unit of Chambal Fertilisers and Chemicals Ltd in Rajasthan.
Consequently, indigenous urea production capacity has increased from 207.54 LMTPA in 2014-15 to 269.42 LMTPA during 2026-27.
The government is also implementing the Talcher Fertilisers Limited (TFL) project and has recently approved a 12.7 LMTPA Brownfield Ammonia-Urea Complex at Namrup, Assam, to be developed as Assam Valley Fertiliser and Chemical Company Limited (AVFCCL).
The government notified the New Urea Policy (NUP) – 2015 on May 25, 2015, for the existing 25 gas-based urea units, with one of its objectives being to maximise indigenous urea production beyond RAC. The NUP-2015 has led to an additional 20–25 LMT of urea production annually compared to 2014-15.
As a result, urea production increased from 225 LMT in 2014-15 to a record 314.07 LMT in 2023-24, while 293.30 LMT was produced during 2025-26. Further, the National Investment Policy for Urea-2026 (NIPU-2026) was approved on July 15, 2026, to promote fresh investments in the sector.
The government has implemented the Nutrient-Based Subsidy (NBS) Scheme with effect from April 1, 2010, for Phosphatic and Potassic (P&K) fertilisers.
Under the scheme, P&K fertilisers are covered by the Open General Licence (OGL), and companies are free to import/manufacture these fertilisers as per their business dynamics. For Kharif-2026, NBS rates have been approved for Rs 41,533.81 crore to ensure availability of P&K fertilisers under the scheme, the statement added.
(IANS)
