India is set to add 25.4 lakh tonnes of annual urea production capacity with two new fertiliser plants expected to begin operations shortly, according to reports from The Times of India and Business Standard. The announcement comes as India continues efforts to boost fertiliser self-sufficiency while shielding farmers from global supply disruptions and price volatility. According to a statement issued by the Ministry of Chemicals and Fertilizers, six new mega urea plants have already been established since 2014, adding a combined annual capacity of 76.2 lakh tonnes. This expansion is particularly significant as global urea prices have surged to ₹4,100 per bag, while Indian farmers continue to receive the 45-kg bag at a heavily subsidized rate of just ₹266.5. The government highlighted that despite severe geopolitical conflicts in West Asia causing skyrocketing prices and acute shortages of natural gas, they have mounted a proactive response to ensure seamless fertilizer sufficiency.
The new production capacity will significantly impact India's urea import requirements, as reported by The Times of India and Business Standard. India imported more than 100 lakh tonnes of urea during the 2025-26 fiscal year, making this domestic expansion crucial for reducing import dependence. The government expects the additional capacity to strengthen domestic availability and reduce reliance on international fertiliser supplies, particularly as global supply chains face disruptions from geopolitical conflicts in West Asia. 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.
India's domestic urea production has shown remarkable growth over the past decade, according to ministry data reported by The Times of India and Business Standard. Production increased from 225 lakh tonnes in 2014-15 to a record 314.07 lakh tonnes in 2023-24, demonstrating the country's expanding fertiliser manufacturing capabilities. Production stood at 306.67 lakh tonnes in 2024-25, maintaining strong growth momentum despite global market challenges. The Ministry highlighted that despite severe geopolitical conflicts causing acute shortages of natural gas and heavily delayed shipping lines, the government has maintained seamless fertilizer sufficiency.
Beyond urea, India has also achieved significant progress in Phosphatic and Potassic (P&K) fertiliser production, as reported by The Times of India and Business Standard. P&K fertiliser production touched a record 211.22 lakh tonnes in 2024-25, compared with 159.54 lakh tonnes in 2014-15. The ministry noted that public and private sector companies are continuing to expand capacity through new P&K fertiliser projects, indicating sustained investment in fertiliser manufacturing infrastructure. Public and private sectors are continuing this momentum by constructing state-of-the-art P&K production plants.
Under Prime Minister Modi's vision to protect 'Dharati Maa' and optimize nutrient balance, a massive nationwide mass-awareness campaign was executed from March to May, with farmers responding with overwhelming enthusiasm. Combined sales of eco-friendly alternatives like Fortified Organic Manure (FOM), Liquid FOM (LFOM), and Phosphate-Rich Organic Manure (PROM) soared to seven times the volume in Financial Year 2025-26 compared to 2024-25. Ammonium Sulphate consumption surged by nearly 60,000 tonnes, while green manuring was introduced across a record 1.84 lakh hectares under the technical guidance of Krishi Vigyan Kendras (KVKs). Despite global DAP prices commanding over ₹5,000 per 50-kg bag, it remains available to Indian farmers at a mere ₹1,350. The government confirmed there is sufficient availability of fertilizers for the ongoing Kharif sowing season, with India's fertiliser security remaining strong, stable, and well-managed.
