3 days ago
India’s urea import costs fall 57% as supplies improve
Urea is a fertilizer that farmers use to help crops grow.
India buys some urea from other countries and also makes some at home.
The cost of imported urea fell sharply from May to August because supplies improved.
India also bought urea from more countries to reduce supply problems.
The country now has much more urea in storage than it had last year.
Lower global prices may help the government manage its fertilizer subsidy bill.
However, another fertilizer called DAP became more expensive.
Farmers are still paying the same controlled prices for urea and DAP in India.
India’s landed urea cost fell to $406 per tonne in August from a May peak of $947.
Officials attributed the decline to easing supplies and imports from a wider range of countries.
India imported 4.74 million tonnes of urea during the current fiscal year, lifting stocks to 7.51 million tonnes by August-end.
Fertiliser subsidy spending could be ₹15,000–20,000 crore higher than the previous fiscal year if global prices remain favorable.
Global DAP prices rose to $925 per tonne in August, while retail urea remained ₹266.50 per 45-kg bag.
- Who
- The Indian government, fertilizer import agencies, and farmers are involved.
- What
- India’s landed cost of imported urea declined by about 57%, while DAP prices increased.
- Where
- The changes concern India and international fertilizer markets.
- When
- The urea price comparison covers May to August 2026; stock and subsidy figures refer to the current fiscal year.
- Why
- Urea supplies eased and imports were diversified after disruptions linked to the West Asia war.
Key facts
- Urea landed cost
- $406 per tonne in August, down from $947 per tonne in May 2026
- Urea imports
- 4.74 million tonnes imported during the current fiscal year
- Urea stock
- 7.51 million tonnes at the end of August, 78% above the previous year
- FY26 fertilizer subsidy
- ₹2.17 lakh crore, including ₹1.42 lakh crore for urea
- Potential subsidy increase
- Officials estimated an increase of ₹15,000–20,000 crore over the previous fiscal year’s actual spending
- DAP price
- $925 per tonne in August, up from $853 per tonne in April 2026
- Retail fertilizer prices
- Urea remained ₹266.50 per 45-kg bag and DAP ₹1,350 per 50-kg bag
Quotes
An unnamed government source
A source discussing the government’s fertiliser subsidy outlook
“If the current global price trend of soil nutrients continues, fertiliser subsidy may be higher by around Rs 15,000 – 20,000 crore from actual subsidy expenses in the previous fiscal.”
financialexpress.com
Sources
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