What has led to the spike in fertilizer demand this kharif season?

Following this, agriculture and farmers’ welfare minister Shivraj Singh Chouhan asked states to take swift action against black marketing, overpricing, and the diversion of subsidised fertilizers. Mint takes a close look at the dynamics of fertilizer use, availability and how much the government spends on fertilizer subsidies.

Why did the consumption of urea and P&K fertilizers rise in India?

According to the central government data, in the ongoing kharif season (which starts from June), India consumed 18.2 million tonnes of the most commonly used fertilizer, urea, between 1 June and 14 September, marking a 4.6% increase from 17.4 million tonnes during the same period last year.

Sales of phosphatic and potassic (P&K) fertilizers also rose significantly, reaching 15.3 million tonnes compared to 13.7 million tonnes in the previous year.

According to experts, besides good rainfall, the increased shift to paddy and maize cultivation drove demand. As on 12 September, paddy area touched 43.85 million hectares, up 1.97% from last year. Similarly, the maize area witnessed an increase of 12.5% and touched 9.48 million hectares.

Meanwhile, average rainfall was 8% above normal between 1 June and 10 September, leading to an increase in crop sowing area and thereby raising demand for fertilizers.

According to the official data, India’s crop sowing area has touched 111 million hectares as on 12 September, higher than the normal area of 109.7 million hectares.

Does India have enough urea stock for farmers?

According to the central government, availability of fertilizers has remained comfortable during the ongoing season so far. As on 14 September 2025, against the pro-rata requirement of 17 million tonne (mt) of urea, the total availability was 21.1 mt. Against this, sales stood at 18.2 mt.

Similarly, for diammonium phosphate (DAP), availability was 6 mt against pro-rata requirement of 5.2 mt, while sales stood at 4.1 mt. DAP is applied to crops for early-stage growth, providing essential phosphorus and starter nitrogen for root development and seed germination.

In nitrogen, phosphorus and potassium (NPK), the availability ensured was 10.9 mt against pro-rata requirement of 6.9 mt. Out of the demand, 7.7 mt NPKs sales took place till 14 September. NPK fertilizer is used in paddy cultivation to supply essential nutrients (nitrogen, phosphorus, and potassium) that support overall plant growth, tiller formation, panicle development and grain filling. NPK is applied at different stages of rice growth, including land preparation, the tillering stage and grain filling stage to enhance crop height, tiller number, and the overall yield of rice grains.

Is the government prepared for the rabi season?

Encouraged by a good monsoon, the Centre has set a foodgrain production target of 362.5 mt for the 2025-26 crop year, a 2.4% increase from the year-ago level. At an event in Delhi on 16 September, agriculture minister Chouhan assured that fertilizers will be supplied in totality as per the demand from states, in coordination with the ministry of chemicals and fertilizers.

Besides, a consortium of Indian fertilizer companies has secured an arrangement with Morocco for 2.5 mt of DAP and triple super phosphate (TSP), a concentrated, water-soluble phosphate fertilizer.

In July 2025, a long-term agreement was also signed between Saudi Arabia and Indian companies for the annual supply of 3.1 mt of DAP for five years starting 2025-26.

Despite geopolitical challenges, 5.7 mt has been secured so far, out of which approximately 2.5 mt has been secured for the rabi 2025-26 season. More imports are in the pipeline for adequate availability during rabi season.

These robust international engagements are expected to secure India’s long-term fertilizer needs and ensure timely supply to states. Due to these efforts, the availability of fertilizers has remained comfortable in states during the ongoing kharif 2025 season so far.

Is India self-reliant on fertilizers?

Urea production has witnessed a robust increase from 22.7 mt in 2013-14 to 30.7 mt in 2024-25, marking an impressive growth of 35%. Similarly, the production of DAP and NPK fertilizers combined has grown from 11 mt to 15.8 mt during the same period—a 44% increase.

The prevalent geopolitical situation has affected supplies of fertilizers to the country. India imports around 60% of DAP and around 15% of its urea requirements.

How much does the central government spend on fertilizer subsidy?

The government of India typically supports the sector via additional subsidies to keep farm gate prices of fertilizers under control. The country has allocated ₹1.68 trillion fertilizer subsidy for the current financial year which is likely to increase amid a rise in consumption and due to geopolitical challenges.

The government makes a tentative estimate of subsidy bill at the beginning of the financial year based on sowing and irrigated area and past demand. There is an implicit commitment to scale up subsidy to meet unforeseen circumstances.

The Budget estimation of the department of fertilizers is made on the basis of the likely consumption of fertilizer in the country, and the price of natural gas, a major input in fertilizer production.

International prices of fertilizers may also vary each year, feeding into India’s import cost. India typically supports the sector via additional subsidies to keep farm gate prices of fertilizers under control.