The Centre has procured 42.7 lakh metric tonnes (LMT) of urea through global tenders to ensure uninterrupted fertiliser availability for farmers, even as domestic production capacity has surged to 269.42 lakh metric tonnes per annum (LMTPA), according to an official statement issued on Tuesday, 21 July 2026. The move comes against a backdrop of global supply disruptions and volatile international commodity markets.

Import Procurement Details

To buffer against domestic production shortfalls — caused by raw material constraints, feedstock price swings, and technical plant shutdowns — the government secured 25 LMT of urea via global tenders in April 2026 and a further 17.7 LMT in June 2026. Together, these procurements form a strategic import cushion running alongside expanded domestic output.

Weekly review meetings with state officials and advance import planning are among the mechanisms used to maintain supply continuity, the statement noted. The Department of Agriculture and Farmers Welfare, in consultation with state governments, assesses seasonal demand, while the Department of Fertilisers allocates supplies through monthly plans tracked on the Integrated Fertiliser Management System (iFMS).

Domestic Capacity Expansion

Under the New Investment Policy (NIP)-2012, the Centre commissioned six new urea plants, each with a capacity of 12.7 LMTPA, adding 76.2 LMTPA to the national grid. The public-sector additions include the Ramagundam unit of Ramagundam Fertilisers and Chemicals Ltd (RFCL) in Telangana, and three units of Hindustan Urvarak and Rasayan Limited (HURL) at Gorakhpur (Uttar Pradesh), Sindri (Jharkhand), and Barauni (Bihar).

The private-sector additions are the Panagarh unit of Matix Fertilisers and Chemicals Ltd in West Bengal and the Gadepan-III unit of Chambal Fertilisers and Chemicals Ltd in Rajasthan. As a result, indigenous urea production capacity has grown from 207.54 LMTPA in 2014-15 to 269.42 LMTPA in 2026-27.

Record Production and New Policy Push

The New Urea Policy (NUP)-2015, notified on 25 May 2015 for existing gas-based urea units, has driven an additional 20–25 LMT of annual production compared to 2014-15 levels. Urea output climbed from 225 LMT in 2014-15 to a record 314.07 LMT in 2023-24, though output moderated to 293.30 LMT in 2025-26.

Building on this, the government approved the National Investment Policy for Urea-2026 (NIPU-2026) on 15 July 2026 to attract fresh private investment into the sector. Two additional projects are also in the pipeline: the Talcher Fertilisers Limited (TFL) project and a newly approved 12.7 LMTPA brownfield ammonia-urea complex at Namrup, Assam, to be developed as Assam Valley Fertiliser and Chemical Company Limited (AVFCCL).

Subsidy Framework for P&K Fertilisers

Beyond urea, the government continues to administer the Nutrient-Based Subsidy (NBS) Scheme — in effect since 1 April 2010 — for Phosphatic and Potassic (P&K) fertilisers. Under the scheme, companies may import or manufacture P&K fertilisers freely under the Open General Licence (OGL). For Kharif-2026, NBS rates worth ₹41,533.81 crore have been approved to keep P&K supplies accessible to farmers nationwide.

With NIPU-2026 now in force and two new production projects under development, India's fertiliser self-reliance push is set to intensify through the rest of the decade.