India may reassess fertiliser subsidy as global urea prices fall

India may reassess its fertiliser subsidy requirement for fiscal year 2026-27 after a decline in global urea prices, a senior government official said on Thursday, asserting that fertiliser stocks remain adequate to meet demand during the ongoing kharif sowing season.

"The stock position of fertilisers in the country is comfortable. India's fertiliser security remains as strong as ever," Aparna S. Sharma, additional secretary in the Ministry of Chemicals and Fertilisers, told reporters at an inter-ministerial briefing on developments in West Asia.

The government had initially estimated fertiliser subsidies at about ₹3.4 lakh crore for the fiscal year that began in April, based on prevailing international price trends.

However, Sharma said recent developments in the global urea market could prompt a review of those estimates.

"As a result of the recent tender that has been done on behalf of the government by one of our entities, there will definitely be cause to reassess the subsidy figures, and we will have a re-look on that," she said.

Any reassessment would depend on confirmation of supply quantities offered by exporters and India's overall import requirements, she added.

State-run National Fertilizers Ltd recently sought bids to import 1.7 million metric tons of urea and received offers exceeding 6 million tons, with the lowest bid at about $445 per ton, reported PTI, citing people familiar with the matter.

The quoted prices were more than 50% lower than those received in a tender floated by Indian Potash Ltd in April.

Lower prices could help contain subsidy spending and improve availability of fertilisers ahead of the winter-sown rabi season.

"The reduction of the prices is because of entry of new countries into the market, and they have entered in a big way," Sharma said.

India's healthy stock position and uninterrupted domestic production may also have influenced market sentiment, she added.

Asked about further imports during the kharif season, Sharma said procurement plans would depend on domestic output, stock levels and monsoon developments.

"We may import about 10 lakh tonnes or 20 lakh tonnes more. We will also keep an eye on our stock," she said.

India's agriculture department has estimated fertiliser demand for the 2026 kharif season at 383.9 lakh tonnes. Available stocks stand at 197.56 lakh tonnes, Sharma said.

India has sourced urea from countries including Oman, Malaysia, Vietnam, Nigeria, Russia, Egypt and Algeria, while diammonium phosphate (DAP) and complex fertilisers have been procured from suppliers such as Russia, Morocco, Jordan, Saudi Arabia and the United States.

India's urea output rose to 306.67 lakh tonnes in 2024-25 from 225 lakh tonnes in 2014-15.

Total fertiliser production, including urea, DAP, NPK and single super phosphate, increased to a record 524.62 lakh tonnes in 2025 from 4433.29 lakh tonnes in 2021.

Nearly 73% of the country's fertiliser requirement last year was met through domestic production, according to government data.

The maximum retail price of neem-coated urea remains fixed at ₹242 per 45-kg bag, while DAP is sold at ₹1,350 per 50-kg bag.