The Indian government on Thursday, 11 June asserted that fertiliser security across the country remains strong, with sufficient stocks in place to support demand during the ongoing kharif sowing season. The assurance came amid concerns over potential supply disruptions linked to ongoing tensions in West Asia.

Government's Position on Fertiliser Availability

Aparna S. Sharma, Additional Secretary in the Ministry of Chemicals and Fertilisers, made the remarks at an inter-ministerial briefing focused on recent developments in West Asia. 'The stock position of fertilisers in the country is comfortable. India's fertilizer security remains as strong as ever,' she said.

Sharma attributed the stable supply position to a combination of long-term procurement agreements, overseas joint ventures, and active coordination through Indian diplomatic missions abroad. The government has secured urea supplies from a broad network of countries including Oman, Malaysia, Vietnam, Georgia, Nigeria, Russia, Finland, Egypt, Algeria, Turkey, and the Netherlands.

Urea Subsidy Reassessment on the Cards

Beyond supply security, the briefing flagged a potential revision of the government's fertiliser subsidy outlay for 2026-27. The preliminary estimate had been prepared on the basis of then-prevailing market trends, but a sharp decline in global urea prices has since altered the calculus.

The trigger for the reassessment is a recent import tender by state-owned National Fertilizers Limited (NFL), which drew bids for more than 6 million tonnes of urea against a tender for just 1.7 million tonnes — a sign of strong supplier competition and softening prices.

Sharma noted that the government will review subsidy projections after confirming quantities offered by suppliers and finalising the overall import requirement. 'The reduction of the prices is because of entry of new countries into the market, and they have entered in a big way. So with this, the prices have come down sharply,' she said, adding that India's strong inventory position may have signalled lower import dependence to exporting nations.

Diversified Sourcing for DAP and NPK

For DAP (Diammonium Phosphate) and NPK fertilisers, India has sourced supplies from Russia, Morocco, Egypt, the United States, Jordan, South Korea, Tunisia, and Saudi Arabia. The breadth of sourcing is part of a deliberate strategy to reduce dependence on any single supplier or region — a lesson reinforced by global supply shocks in recent years.

Implications for Rabi Season and Farmers

The fall in global urea prices is expected to help contain the rise in fertiliser subsidy expenditure, while ensuring adequate nutrient availability not just for the current kharif season but also for the upcoming rabi season. This comes amid a broader government push to stabilise input costs for farmers, for whom fertiliser affordability remains a critical concern. Notably, this is the first major inter-ministerial briefing on fertiliser security since West Asia tensions escalated in recent weeks.

The government is expected to finalise revised subsidy projections once supplier confirmations and import assessments are complete.