Image used for representational purposes only. | Photo credit: Getty Images/iStockphoto
Ahead of the kharif season beginning later this month, the Parliamentary Standing Committee on Fertilizers, headed by Trinamool Congress MP Azad Kirti Jha, has warned of an acute shortage of essential fertilisers. In view of the ongoing geopolitical tensions in West Asia and consequent pressures on international shipping lanes, the committee, in a report tabled in Parliament on Friday, highlighted the need for a “proactive and forward-looking strategy” to protect India’s fertilizer supply chain.
Although the government puts on a brave face when it claims that the country has adequate supplies of Urea, Nitrogen, Phosphorus and Potassium (NPK) and Diammonium Phosphate (DAP) fertilizers, the Union Fertilizer Department, headed by former BJP president JP Nadda, has been working with various ministries to ensure adequate supplies across the country during the May kharif season.
A Parliamentary panel recommended a “Fertilizer Supply Security Fund” and noted that India’s dependence on imports of critical fertilizer inputs remains a major structural vulnerability. On urea, one of the most widely used fertilisers, the panel noted that its domestic production of urea was 306.67 Lakh Metric Tonnes (LMT) in 2024-25 and is projected to import around 85 LMT in 2026-27, which will entail a subsidy of ₹ 0 and 91.0 crores in ₹ 31,999 crore (for imported urea).
Domestic production meets only about 10% of phosphate requirements, potash is almost exclusively imported, and sulfur also has limited domestic availability. “This near-total dependence on imports exposes the country’s fertilizer supply chain to the full brunt of geopolitical disruption, global commodity price volatility and currency risks. In particular, continued geopolitical tensions in the Middle East and consequent pressures on international shipping routes highlight the need for a proactive and forward-looking strategy to protect India’s fertilizer supply chain.”
The panel flagged the “acute shortage” of DAP during recent seasons, which necessitated a special additional support package of ₹3,500 per MT over and above the nutrient subsidy for DAP, and cited this as a clear example of this vulnerability. Urging the government not to wait for the crisis to trigger corrective measures, it proposed a “Fertiliser Supply Security Fund”. Although the share of urea imports has declined from 28.5% in 2020-21 to 15.5% in 2024-25, the panel said production has remained stagnant at around 305-315 LMT against consumption of around 390-400 LMT, resulting in continued significant volumes of imports.
The Ministry of Fertilizers reported a 36.5% year-on-year increase in total fertilizer stocks, rising from 129.85 LMT on March 6, 2025 to 177.31 LMT as of today. “This impressive buffer is driven by an unprecedented increase in critical soil nutrients, especially DAP stocks (now 25.13 LMT) and an increase in NPK stocks (reaching 55.87 LMT). In addition, the availability of urea – the country’s most widely used fertilizer – has also increased to 59.30 LMT,” the ministry said.
However, after high-level deliberations, the government decided to provide fertilizer producers with at least 70% of the average natural gas consumption of the last six months. “This measure aims to protect fertilizer production against disruptions to the global supply chain, particularly LNG supply issues caused by the ongoing conflict in the Middle East,” the ministry said.
Published – 14 March 2026 22:14 IST
