India's Fertilizer Imports: A Detailed Overview

India imported substantial quantities of urea and phosphatic and potassic (P&K) fertilizers from China in 2023-24. The government has been working to achieve self-sufficiency in urea by reviving several units. The Nutrient Based Subsidy Policy regulates P&K fertilizer subsidies based on their nutrient content.

India imported 18.65 lakh tonnes of urea and 22.58 lakh tonnes of phosphatic and potassic (P&K) fertilizers from China during 2023-24, the government informed Parliament on Tuesday.

In a written reply to the Rajya Sabha, Minister of State for Chemicals & Fertilizers Anupriya Patel stated that the Government of India imports urea for agricultural purposes to fill the gap between domestic production and demand. Data indicates that India imported a total of 70.42 lakh tonnes of urea in 2023-24, costing USD 2.6 billion, with 18.65 lakh tonnes from China valued at USD 730 million.

Regarding P&K fertilizers, these are imported under the Open General Licence (OGL) as part of the Nutrient Based Subsidy (NBS) Scheme and imported commercially by companies. The total import of P&K fertilizers was 106.53 lakh tonnes, with 22.58 lakh tonnes coming from China.

To achieve self-sufficiency in urea production, the government has revived several units across multiple states through joint ventures, adding 50.8 lakh tonnes per annum of indigenous urea production. The NBS policy, effective from April 1, 2010, provides fixed subsidies on P&K fertilizers based on their nutrient content, balancing affordability for farmers and market dynamics.

(With inputs from agencies.)