The Ministry of Fertilisers on 28 April 2025 confirmed that retail prices of all major fertilisers in India will remain unchanged, even as international urea prices have surged beyond ₹4,000 per bag. The government continues to supply urea to farmers at a heavily subsidised rate of ₹266.5 per 45 kg bag, absorbing the difference through the subsidy mechanism to shield farmers from global price volatility.

Key Developments in Fertiliser Pricing

While global fertiliser markets have seen sharp upward pressure — driven by energy costs and supply chain disruptions — domestic retail prices have not moved. The Ministry of Fertilisers said in a statement that its commitment to affordability and accessibility for India's farming community remains non-negotiable. This price freeze effectively means the Centre is bearing a significantly larger subsidy burden per bag than in previous seasons.

Kharif 2026 Stock Position

Fertiliser availability ahead of the kharif 2026 season is described as robust, with stocks well above seasonal norms. The Agriculture Ministry has assessed the kharif 2026 fertiliser requirement at 390.54 lakh metric tonnes (LMT). As of 28 April 2025, available stock stands at approximately 190 LMT — around 49% of the seasonal requirement — significantly higher than the usual buffer of about 33%. The ministry attributed this to improved planning, advance stocking, and efficient logistics management.

Fertiliser-by-fertiliser, the supply position as of 1–26 April is sharply ahead of requirement. Urea availability stands at 71.40 LMT against a requirement of 20.54 LMT; DAP at 23.09 LMT against 6.67 LMT; MOP at 8.38 LMT against 1.96 LMT; NPK at 53.40 LMT against 8.43 LMT; and SSP at 25.78 LMT against 3.73 LMT. Across every category, availability is running at three to six times the current requirement.

Domestic Production and Gas Supply

Concerns around natural gas availability — a critical input for domestic urea manufacturing — have been addressed, according to the ministry. A steady gas supply is being maintained to fertiliser plants, with additional LNG/RLNG arranged as required. At present, 97% of LNG/RLNG requirements are being met at fertiliser plants, and most urea plants are operating at optimum capacity.

Import Diversification and Global Tenders

To reinforce domestic supply, India has actively diversified its import sources. In February 2025, India secured 13.07 LMT of urea through the global tender route. The government has since scaled up, securing 25 LMT of urea through a fresh global tender. Additionally, Indian fertiliser companies have issued an aggregated global tender for 12 LMT DAP, 4 LMT TSP, and 3 LMT ammonium sulphate, aimed at ensuring adequate availability during the peak kharif season. Notably, this diversification of import sources comes at a time when geopolitical tensions continue to disrupt global fertiliser supply chains.

What This Means for Farmers

For India's farmers — particularly smallholders who depend on subsidised inputs — the price freeze provides critical cost certainty at the start of the sowing season. With kharif stocks at nearly 1.5 times the normal buffer level, the risk of localised shortages or black-market price spikes is considerably reduced. The Centre's approach signals that farm input affordability will remain a policy priority even as the fiscal cost of fertiliser subsidies rises in line with global prices. How long this price shield can be sustained without a course correction on subsidy outgo will be a key question for the next Union Budget.