Fertilizer stocks for kharif: Centre struggles to avoid crisis

Ahead of the kharif season beginning by the end of this month, Parliament Standing Committee on Fertilisers, headed by Trinamool Congress MP Azad Kirti Jha, has warned of acute shortages of essential fertilizers. Noting about the ongoing geopolitical tensions in the West Asia and the consequent pressures on international shipping routes, the Committee, in a report tabled in Parliament on Friday, underlined the need for a “proactive and forward-looking strategy” to safeguard India’s fertilizer supply chain.

Though the Government has been putting up a brave face by maintaining that the country has adequate stock of urea, Nitrogen-Phosphorus-Potassium (NPK) and Di Ammonium Phosphate (DAP) fertilisers, the Union Fertiliser Department, headed by former BJP president J.P. Nadda, has been working with various Ministries to ensure adequate supplies by the beginning of May across the country to meet the requirements during kharif season.

Recommending a “Fertiliser Supply Security Fund”, the Parliament panel observed that India’s dependence on imports for critical fertiliser inputs remains a major structural vulnerability. On urea, one of the most used fertilisers, the panel noted that its domestic production of urea stood at 306.67 Lakh Metric Tonnes (LMT) in 2024-25, and imports of approximately 85 LMT are projected for 2026-27, entailing a subsidy outgo of ₹91,000 crore (for indigenous urea) and ₹31,999 crore (for Imported Urea) respectively.

The domestic production meets only about 10% of rock phosphate requirements, potash is almost entirely imported, and Sulphur also has limited domestic availability. “This near-total import dependence exposes the country’s fertiliser supply chain to the full brunt of geopolitical disruptions, global commodity price volatility, and foreign exchange risks. In particular, the ongoing geopolitical tensions in the Middle East and the consequent pressures on international shipping routes underline the need for a proactive and forward-looking strategy to safeguard India’s fertiliser supply chain,” it said.

The panel flagged “acute shortage” of DAP during recent seasons, which necessitated a special additional support package of ₹ 3,500 per MT over and above the nutrient based subsidy for DAP and cited it as a stark illustration of this vulnerability. Urging the Government to not wait for a crisis to trigger corrective action, it mooted a “Fertiliser Supply Security Fund.” Though the import share of urea has decreased from 28.5% in 2020–21 to 15.5% in 2024–25, the panel said production has remained stagnant at approximately 305–315 LMT against a consumption of around 390–400 LMT, resulting in continued substantial import volumes.

The Department of Fertilisers reported a 36.5% year-on-year surge in overall fertiliser reserves, rising from 129.85 LMT on March 6, 2025, to 177.31 LMT as of now. “This formidable buffer is driven by unprecedented increase in critical soil nutrients, most notably DAP stocks (now at 25.13 LMT) and rise in NPKs reserves (reaching 55.87 LMT). Furthermore, the availability of Urea—the country’s most widely consumed fertilizer—has also grown to reach 59.30 LMT,” the Ministry said.

However, after a high-level meeting, the Government decided to provide at least 70% of the average natural gas consumption to fertiliser manufacturers based on the last six months. “This measure aims to safeguard fertiliser production against global supply chain disruptions, particularly the LNG supply issues caused by the ongoing conflict in the Middle East,” the Department said.