The Indian Government has taken several measures to boost domestic fertilizer production, diversify raw material sources, and maintain uninterrupted supplies amidst global disruptions.
The Government of India has implemented a series of strategies to strengthen domestic fertilizer production and ensure its availability despite global supply challenges. To tackle issues like raw material scarcity, international price fluctuations, and technical shutdowns, the government has diversified sourcing and secured significant amounts of urea through global tenders. In April 2026, 25 LMT of urea was procured, followed by an additional 17.7 LMT in June 2026.
To ensure timely fertilizer availability, the Department of Agriculture & Farmers Welfare, in collaboration with State Governments, assesses seasonal requirements and allocates supplies through monthly plans. Movement is monitored using the Integrated Fertilizer Management System (iFMS). Weekly review meetings with state officials and advance imports further help maintain uninterrupted supplies.
Under the New Investment Policy (NIP)-2012, six new urea plants have been commissioned, adding approximately 76.2 LMTPA to the country's production capacity. These include four joint venture plants at Ramagundam Fertilizers and Chemicals Ltd (RFCL) in Telangana and three units of Hindustan Urvarak & Rasayan Limited (HURL) in Uttar Pradesh, Jharkhand, and Bihar. Private companies have also set up new urea plants at Matix Fertilizers and Chemicals Ltd. (Matix) in West Bengal and Chambal Fertilizers and Chemicals Ltd. (CFCL) in Rajasthan.
Consequently, indigenous urea production capacity has increased from 207.54 LMTPA in 2014-15 to 269.42 LMTPA during 2026-27. The government is also implementing the Talcher Fertilizers Limited (TFL) project and has recently approved a 12.7 LMTPA Brownfield Ammonia-Urea Complex at Namrup, Assam, to be developed as Assam Valley Fertilizer and Chemical Company Limited (AVFCCL).
The New Urea Policy (NUP) – 2015 was notified on May 25, 2015, with the objective of maximizing indigenous urea production. This policy led to an additional production of urea by 20-25 LMT annually compared to the production during 2014-15.
As a result, urea production has increased significantly, with 314.07 LMT produced in 2023-24 and 293.30 LMT produced during 2025-26. The National Investment Policy for Urea-2026 (NIPU-2026) was approved on July 15, 2026, to promote fresh investments in the sector.
Source:
Press Information Bureau
