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India doubles down on fertilizer security: Record production, global deals and robust subsidy support keep Kharif supply comfortable

India’s fertilizer security playbook just got sharper. The Department of Fertilizers (DoF) has confirmed that Kharif 2025 sales have been met without shortages, despite one of the most turbulent years for global fertilizer supply chains in recent memory. This achievement reflects a decade-long transformation in India’s domestic production capacity, coupled with nimble diplomacy and financial support that have collectively shielded farmers from price shocks and supply disruptions.

Urea production has risen from 227.15 LMT in 2013–14 to 306.67 LMT in 2024–25, registering an impressive 35 percent growth, while production of DAP and NPK fertilizers together has expanded 44 percent to 158.78 LMT over the same period. These gains underscore the government’s focus on building Atmanirbharta in fertilizers and reducing import dependence. Even as the Red Sea crisis forced vessels to reroute around the Cape of Good Hope, adding 6,500 km to shipping journeys, and geopolitical conflicts from Ukraine to the Gulf pushed global prices upward, India secured long-term supply lines through targeted international partnerships. A consortium of Indian firms locked in 25 LMT of DAP and TSP from Morocco, while a landmark five-year agreement with Saudi Arabia will ensure 31 LMT of DAP annually starting 2025–26.

These interventions kept national inventories well above seasonal demand, with 183 LMT of Urea available against a pro-rata requirement of 143 LMT, 49 LMT of DAP against 45 LMT required, and 97 LMT of NPK fertilizers against a requirement of 58 LMT. Urea sales alone have grown by more than 13 LMT compared to the same period last year, yet supplies have remained uninterrupted thanks to maximized domestic production and timely global procurement.

Even as international prices escalated, the government maintained affordability for farmers through massive subsidies and price controls. Urea continues to retail at a statutorily notified price of Rs 242 per 45-kg bag, while DAP is held at Rs 1,350 per bag through a special package covering GST reimbursements, cost escalations, and reasonable producer returns.

Governance has also been strengthened with tighter enforcement to curb hoarding, black marketing, and diversion of subsidized fertilizers. Since April 2025, nearly two lakh inspections and raids have been conducted nationwide, resulting in 7,927 show-cause notices, suspension or cancellation of 3,623 licenses, and the registration of 311 FIRs under the Essential Commodities Act.

By combining record production, strategic global agreements, aggressive subsidy support, and vigilant oversight, India has not only stabilized fertilizer supply in a volatile global market but also future-proofed its agricultural input system. The result is a comfortable, uninterrupted supply of critical nutrients that safeguards farmer welfare, sustains productivity, and reinforces the nation’s food security strategy for the long term.

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