Archive · 18 Jul 2025
Fertilizer Crisis in India: Shortages, Price Hikes, and Subsidy Concerns
Farmers in Madhya Pradesh are struggling to get enough fertilizer for their crops, with long lines and price hikes.
Simultaneously, the cost of importing essential fertilizer ingredients like DAP is going up worldwide.
This means the government may need to spend more money to help farmers, who are also facing issues like black market sales of the fertilizer at inflated prices.
This is partly due to supply issues and global events affecting the fertilizer market, impacting both availability and affordability for Indian farmers.
Farmers in Madhya Pradesh face fertilizer shortages, leading to long queues and protests.
Black marketing of urea and DAP is reported, with prices significantly higher in the open market.
The government may exceed its fertilizer subsidy budget due to rising global DAP prices.
DAP prices have increased significantly since April, impacting import costs for India.
India imports a large portion of its DAP, and supply constraints have reduced opening stocks.
- Who
- Farmers in Madhya Pradesh, the Indian government, and fertilizer suppliers and importers.
- What
- Farmers are facing fertilizer shortages and high prices, while the government is grappling with rising subsidy costs.
- When
- The situation is ongoing, with reports of shortages and price increases in recent months.
- Where
- Madhya Pradesh, India, with implications for global fertilizer markets.
- Why
- Fertilizer scarcity and price hikes are caused by a combination of disrupted supply chains, rising global costs, and black market activities.
Farmers' Perspective
Government's Perspective
Fertilizer Availability
Farmers' Perspective
Experiencing shortages and high prices, forcing them to buy at inflated market rates.
Government's Perspective
Government's view is that there is no shortage in the state.
Government Response
Farmers' Perspective
Accusing officials of negligence and demanding action against black marketeers.
Government's Perspective
Officials working to distribute fertilizers and deny there is a shortage.
- Urea Price (Cooperative)
- Rs 266
- Urea Price (Market)
- Rs 400
- DAP Price (Official)
- Rs 1,250 per bag
- DAP Price (Market)
- Rs 2,000
- DAP Price Increase (April)
- 23%
- DAP Opening Stock (June)
- 1.24 MT
- DAP Global Price
- $800/tonne