Archive · 3 Nov 2025
India Faces Potential Urea Scarcity Amidst Soaring Demand and Stagnant Production
Imagine farmers need a special plant food called urea to help their crops grow.
This year, farmers are using a lot more urea because the monsoon rains were good, and the price of urea hasn't gone up in many years, making it very cheap.
This means more farmers are buying it, and sales are at an all-time high.
However, the factories that make urea in India aren't producing much more than they used to.
Some old factories have even closed down.
While new ones have been built, they aren't always making enough.
This means there might not be enough urea for all the farmers who want it, especially with new crops being planted.
The government has tried things like coating urea with neem oil to make it last longer, and they have new 'Nano Urea,' but these haven't stopped people from using so much.
To fix this, prices might need to change, or maybe farmers can only buy a certain amount.
More factories or importing urea will also be needed to meet the demand.
India's urea consumption is nearing 40 million tonnes due to strong demand and stagnant prices over a decade.
Farmers are increasing urea use, driven by surplus monsoon-induced demand and planting of rabi season crops.
Despite attempts to control consumption like neem coating and Nano Urea, usage has risen significantly.
Domestic urea production has not kept pace with consumption, with some plants shutting down and new ones not operating at full capacity.
Managing urea supply and demand presents significant economic and political challenges for India.
- Who
- Indian farmers and the Indian government
- What
- Potential urea scarcity due to high consumption and insufficient domestic production
- When
- Current and upcoming fiscal years
- Where
- India
- Why
- Surplus monsoon-induced demand, unchanged urea prices for over a decade, and a lack of commensurate increase in domestic production.
- Projected Urea Consumption
- Approaching 40 million tonnes (mt) in the current fiscal year
- All-time High Sales
- 38.8 mt in 2024-25
- Urea MRP (since Nov 2012)
- Rs 5,360 per tonne
- Opening Stocks (Oct 1)
- 3.7 mt (down from 6.3 mt last year)
- Domestic Production Peak
- 31.4 mt in 2023-24
- Recent Plant Closures
- Nagarjuna Fertilizers & Chemicals (1.2 mt) and Kanpur Fertilizers & Chemicals (0.7 mt)