Fertiliser Sector
Strategic Importance and Import Dependence
India is one of the world's largest consumers of fertilisers, with urea, DAP, and MOP constituting the bulk of usage. The country depends significantly on imports for raw materials such as potash, phosphoric acid, and liquefied ammonia — many of which originate from or transit through West Asia.
- Fertiliser production in India fell 24.6% in March 2026 — the steepest single-month drop since the current data series began in April 2012.
- For FY26 as a whole, fertiliser production growth slumped to a 13-year low.
- Urea remains price-controlled: farmers pay ₹242 per 45 kg bag (fixed since March 2018), with the government absorbing the remaining cost as subsidy.
- India's fertiliser import bill is a significant component of the subsidy burden; supply disruptions translate directly into production shortfalls and domestic price pressure.
● Tracked since March 20, 2026 · last seen April 20, 2026 · updates as the daily brief publishes
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