India's Urea Imports Surge Amid Declining Domestic Production

India's urea imports surged by 120.3% to 7.17 million tonnes in the first eight months of the current fiscal year due to a decline in domestic production. This increase in imports underscores the country's reliance on foreign supplies to meet agricultural demand, prompting strategic supply chain management.

India's reliance on imported urea has more than doubled during the initial eight months of the ongoing fiscal year, reaching 7.17 million tonnes, as domestic production wavered. Industry data released on Monday revealed a substantial 120.3% increase in urea imports compared to the same period last year, signaling growing dependency on global supply chains.

The Fertiliser Association of India (FAI) reported a 3.7% decline in domestic urea production during the same timeframe. Despite the production setback, urea sales have climbed marginally by 2.3% to 25.40 million tonnes. FAI Chairman S Sankarasubramanian highlighted the strategic importance of import readiness in facilitating continual supply throughout crucial agricultural seasons.

While urea remains a central focus, India's dependence on di-ammonium phosphate (DAP) imports also rose significantly, now constituting 67% of the total supply. Conversely, certain domestic production sectors, such as single super phosphate (SSP), experienced growth, indicating a dual approach in managing nutrient needs through both imports and enhanced local output.

(With inputs from agencies.)