Sales and imports of fertilizer types have increased dramatically, according to trade sources, despite the government’s efforts to reduce urea and diammonium phosphate (DAP) use through the introduction of nano-variants.
Data from April to December of 2025–2026 also show a decrease in domestic fertilizer production as compared to the same time frame in the prior fiscal year. Domestic urea and DAP production decreased by 3.2% and 3.9% to 22.4 MT and 3 MT, respectively, during the first three quarters of the current fiscal year.
While inward shipments of DAP increased 45% to 6 MT from April to December of FY26, urea imports increased 85% to over 8 MT during the same period. Due to increased demand during the rabi and kharif seasons, urea sales increased by 3.8% to over 31 MT between April and December of FY26.
Imports of NPK (nitrogen, phosphorus, potassium) fertilizer increased by 121% to 3.29 MT between April and December of 2025–2026. This follows the fertilizer ministry’s recent announcement that in 2025, domestic production accounted for approximately 73% of the nation’s soil nutrient needs.
The ministry reports that from 50.95 MT in 2024 to 52.46 MT in 2025, domestic production of fertilizers, urea, DAP, NPK, and single super phosphate (SSP) increased. India imports two-thirds of its DAP use, while 20% of its urea needs are satisfied by imports.
Important raw materials like “rock phosphate,” which are mostly imported from Senegal, Jordan, South Africa, and Morocco, are also necessary for the domestic production of DAP. Industry projections indicate that a spike in domestic demand will cause overall imports of soil fertilizers to rise by more than 41% to more than 22.3 MT in FY26.
About 25% to 30% of the 60–65 MT of heavily subsidized fertilizers that the government provides to farmers each year come from imports. The second-biggest fertilizer consumer in the world imported 16 MT of soil nutrients in FY25. The government spent Rs 1.91 lakh crore on urea subsidies in FY25. In contrast to the budget forecast of Rs 1.67 lakh crore, the fertilizer subsidy in FY26 is expected to be approximately Rs 1.95 lakh crore.
