India to meet 90% of its domestic urea demand by 2030 to improve food security | Today’s news

New Delhi: India plans to add 13.7 million tonnes (mt) of annual urea production capacity by 2030, bringing domestic capacity to about 43.7 million tonnes, as the country seeks to reduce import dependence and protect farmers from fluctuating global fertilizer prices, two people familiar with the development said.

The annual demand for urea in India is around 40 million tonnes and is growing at around 5%. Domestic production satisfies roughly 75% of the country’s needs, the rest is made up of imports. The expansion is intended to reduce this dependence as the escalating conflict in West Asia drives up global fertilizer prices.

Estimated production of 43.5-43.7 million tonnes will meet roughly 90% of projected domestic demand of 48.61 million tonnes by 2030. Every 1 million tonnes of domestic capacity that replaces imports can save around $500 million annually in foreign exchange, according to an estimate cited in the news, according to Satyam Shivam Sundaram, EY Partner, Government, Government The potential savings are important because fertilizer subsidies they remain one of the largest components of the Centre’s support to agriculture.

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“We expect an additional 13.5-13.7 million tons of urea production capacity to be commissioned by 2030,” said one of the people cited above.

The expansion includes 10 million tonnes of additional annual capacity planned under the National Investment Policy for Urea-2026 (NIPU-2026), along with two domestic projects of 1.27 mt each and a proposed venture involving a Russian fertilizer producer, the person said.

Mint reported on September 26 that the fertilizer ministry has received 17 proposals from companies including GAIL (India) Ltd, Hindustan Urvarak & Rasayan Ltd (HURL), Krishak Bharati Cooperative Ltd (Kribhco), Chambal Fertilizers and Chemicals Ltd and Matix Fertilizers and Chemicals Ltd to set up new urea plants. Greenfield and brownfield proposals are at various stages of examination by the department.

The Union Cabinet has approved NIPU-2026, which envisages 10 million tonnes of additional urea capacity per annum following the spike in global fertilizer prices triggered by the conflict in West Asia.

The Department of Fertilizers, GAIL, RCF, Fertilizers Corporation of India, Assam Valley Fertilizer and Chemical Company, Oil India, National Fertilizers and Brahmaputra Valley Fertilizer Corporation did not respond to email queries sent on October 12 at the time of publication.

Two domestic projects

Talcher Fertilizers Ltd, backed by GAIL, Rashtriya Chemicals & Fertilizers Ltd, Coal India Ltd and Fertilizers Corp. of India Ltd, is setting up a greenfield urea plant in Odisha with an annual capacity of 1.27 mt using coal gasification.

Coal India, in response to Mint’s query, said the estimated cost of the project is ₹19,000 crore and is expected to be completed in fiscal year 2028 (FY28).

Assam Valley Fertilizer and Chemical Company Ltd, supported by the Government of Assam, Oil India Ltd, National Fertilizers Ltd, HURL and Brahmaputra Valley Fertilizer Corporation Ltd, is also setting up a 1.27 mtpa plant in Assam.

Ravi Kota, Chief Secretary of Assam, confirmed the proposed capacity in an email reply to Mint, with the estimated cost of the project being approx. ₹10,600 million crowns. He said the plant is expected to be commissioned within 48 months from zero date, tentatively during FY31. HURL said in an email that the project is expected to be operational in December 2030.

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A separate proposed venture involving Russia’s JSC UralChem could also help secure supplies. On December 5 last year, the central government said in a press release that a memorandum of understanding had been signed between UralChem, Rashtriya Chemicals and Fertilizers Ltd, National Fertilizers Ltd and Indian Potash Ltd. The agreement was signed in New Delhi in the presence of Russian President Vladimir Putin and Prime Minister Narendra Modi.

The proposed project, to be located in Togliatti in Russia’s Samara region, includes a urea production capacity of approximately 2 mt per year.

Not enough

Higher domestic production could reduce dependence on imports and exposure to global price swings, but experts say India must also address how efficiently fertilizers are used.

“While government initiatives to boost urea supply are welcome, equal attention must be given to demand management. Promoting balanced use of fertilizers and improving nutrient use efficiency are essential to sustainably address growing demand,” said Sachchida Nand, visiting professor at the Indian Council for Research on International Economic Relations (ICRIER).

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Fiscal stakes remain significant. India’s expenditure on fertilizer subsidies exceeded ₹2.17 trillion in FY26, while the government had a budget ₹1.77 trillion per year. Amid rising prices linked to the West Asian crisis, the Fertilizer Ministry had earlier sought a 100% increase in subsidy allocation to ₹3.5 trillion.

Subsidy projections have since softened following a decline in fertilizer prices and India’s efforts to build sufficient stocks to meet near-term demand.

Global urea prices rose from $447 per tonne in February 2026 to $510 in March after the conflict erupted on 28 February. Prices rose further to $772 in April and peaked at $947 in May before falling to $447 per tonne in July, according to fertilizer ministry data.