India’s Fertilizer Stocks Rise 26% to 163 LMT; Govt Steps Up Subsidy and Domestic Production Push

With higher fertilizer stocks already secured and additional investments planned, the government aims to ensure timely supply during both Kharif and Rabi seasons, thereby supporting India’s agricultural productivity and food security.

Union Finance Minister Smt. Nirmala Sitharaman informed the Lok Sabha that India currently holds a robust fertilizer stock of 163 lakh metric tonnes (LMT) for April, reflecting a 26% increase compared to last year’s stock of 128.54 LMT. The enhanced availability is the result of strategic planning by the government to ensure adequate supplies for farmers ahead of the Kharif sowing season.

Addressing Parliament during the discussion on the second batch of Supplementary Demands for Grants for the 2025–26 Union Budget, the Finance Minister said the government is not only ensuring immediate availability but is also preparing early for the Rabi season, reflecting a proactive approach to agricultural input management.

₹19,000 Crore Additional Fertilizer Subsidy Proposed

Highlighting the government’s commitment to supporting farmers, the Finance Minister announced that the Centre is proposing to spend around ₹19,000 crore more than the original Budget Estimate on fertilizer subsidies through the second supplementary demands.

The additional allocation is aimed at ensuring uninterrupted supply of fertilizers to farmers while stabilizing prices amid global supply fluctuations.

“The government remains committed to ensuring that fertilizers are available to farmers at affordable prices while simultaneously strengthening domestic manufacturing capabilities,” the Finance Minister said.

Domestic Urea Production Witnesses Strong Growth

India’s efforts to reduce dependency on fertilizer imports have led to a steady increase in domestic urea production over the past decade.

According to the Finance Minister:

• Urea production stood at 225 LMT in 2014–15

• It has increased significantly to 306.67 LMT in 2024–25

This growth reflects the government’s push for self-reliance in fertilizer production, supported by policy reforms and investment in new manufacturing facilities.

Six New Urea Plants Add 76.2 LMT Capacity

As part of the government’s strategy to boost domestic fertilizer output, six new production units have been operationalised under the New Investment Policy introduced during the tenure of Prime Minister Narendra Modi.

Each of these plants has an average annual production capacity of 12.7 LMT, collectively adding 76.2 LMT to the country’s total urea production capacity.

The expansion is expected to significantly strengthen India’s fertilizer supply chain and reduce import dependence.

Two New Fertilizer Plants Planned in Odisha and Assam

The Finance Minister also informed Parliament that two additional fertilizer plants are currently under development in Odisha and Assam under the New Urea Policy of 2015.

Once operational, these facilities are expected to add another 25.4 LMT annually to national production capacity.

In addition to new plants, the government is also undertaking capacity expansion of existing fertilizer manufacturing units, ensuring that domestic production keeps pace with growing agricultural demand.

Strategic Planning to Support Agricultural Growth

The Finance Minister emphasized that the government’s fertilizer policy focuses on three key pillars:

• Ensuring adequate stock availability for farmers

• Strengthening domestic manufacturing capacity

• Maintaining affordable prices through subsidies

With higher fertilizer stocks already secured and additional investments planned, the government aims to ensure timely supply during both Kharif and Rabi seasons, thereby supporting India’s agricultural productivity and food security.