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CommodityWireIndia ramped up urea production over past decade, says govt

India ramped up urea production over past decade, says govt

This story was originally published at 19:17 IST on 24 March 2026
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Informist, Tuesday, Mar. 24, 2026

 

NEW DELHI – India has significantly ramped up domestic urea production over the past decade, narrowing its import dependence and strengthening fertiliser availability, driven by a series of government policy interventions and new plant commissioning, the government said in a release Tuesday.

 

According to the Ministry of Chemicals and Fertilisers, domestic urea production capacity increased to 28.37 million tonnes per annum in 2023-24 (Apr-Mar), up from 20.75 million tonnes per annum in 2014-15, following the commissioning of six new plants under the New Investment Policy.

 

Urea output has also surged, rising from around 22.50 million tonnes in 2014-15 to a record 31.41 million tonnes in 2023-24, before easing to 30.67 million tonnes in 2024-25.

 

The government said the increase has been driven by policy measures including the New Urea Policy 2015, which alone added 2.0–2.5 million tonnes of annual production over 2014-15 levels.

 

To further strengthen domestic capacity, new projects have been approved, including a 1.27 million tonnes greenfield urea plant at Talcher and a brownfield ammonia-urea complex of similar capacity in Assam.

 

On phosphatic and potassic fertilisers, the government continues to provide flexibility through the Nutrient Based Subsidy scheme, under which companies can import or produce fertilisers based on market dynamics.

 

Efforts to reduce import dependence include expanding the number of fertiliser grades covered under the Nutrient Based Subsidy scheme from 22 in 2021 to 28 currently, and promoting domestic production through pricing guidelines and freight subsidies for single super phosphate.

 

To secure raw material supplies, Indian firms have entered long-term agreements with multiple countries for inputs such as rock phosphate, phosphoric acid, and ammonia, the release said. 

 

Data shared showed fertiliser availability has remained comfortable in recent years. For 2025-26 till Mar. 18, urea availability stood at 43.99 million tonnes against a requirement of 37.52 million tonnes, with similar surplus seen across fertilisers.

 

The government said it ensures timely supply through advance demand assessment, monthly allocation to states, and real-time monitoring through the Integrated Fertilizer Management System, along with regular coordination with state officials.  End

 

Reported by Pallavi Singhal

Edited by Akul Nishant Akhoury

 

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