There has been a huge decline in the stock of urea in the country as compared to last year. Due to this, farmers in many states are facing the crisis of availability of urea. On the other hand, due to increase in the prices of urea in the international market, the cost of imported urea in the country has reached $ 530 per tonne, which was around $ 400 in May.
The shortage of urea has created a big crisis in front of the farmers facing the shortage of diammonium phosphate (DAP). According to the data of the Ministry of Agriculture, on August 1, 2025, the stock of urea in the country was 37.19 lakh tonnes, which is 49.24 lakh tonnes less than last year. On August 1, 2024, the stock of urea in the country was 86.43 lakh tonnes. In this way, the stock of urea is less than half as compared to last year. Recently, the Agriculture Ministers of the states had demanded additional urea from the Central Government.
This year, due to better monsoon in the country, Kharif crops have been sown in a record area. The highest increase in sowing area has been in paddy and maize and both these crops consume more urea. Whereas the area of oilseed crops and some pulses which require less urea has decreased. This situation has increased the demand for urea but on the contrary, the available stock in the country is not even half of last year. Due to this, farmers in many states are seen standing in long queues at fertilizer sales centers to buy urea and in many places they were seen standing in lines despite rain because the availability of urea is important for them at this time.
While the reason behind the shortage of urea is the increase in global prices, China is not exporting urea to India. However, there are reports that China is lifting the ban on fertilizer exports to India. But now even if India makes import deals with China, it will take one to one and a half months for the urea imported from there to reach the farmers.
On the other hand, domestic production is also getting affected. According to industry sources, production has also been affected in Ramagundam Fertilizer and Talcher Fertilizer Plant. On the other hand, Kakanada-based Nagarjuna Fertilizer has given priority to exporting green ammonia instead of producing urea.
Among other fertilizers, the stock of DAP on August 1, 2025 was 13.90 lakh tonnes, which is slightly less than 15.82 lakh tonnes at the same time last year. At the same time, the stock of complex fertilizers was 34.97 lakh tonnes on August 1, 2025, which was 46.99 lakh tonnes on the same date last year. The stock of MOP was 6.27 lakh tonnes on August 1, 2025 this year as against 8 lakh tonnes last year. However, the stock of SSP was 20.73 lakh tonnes on August 1, 2025 this year as against 20.06 lakh tonnes last year.
The government provides subsidy for complex fertilizers under the Nutrient Based Subsidy (NBS) and their prices are not controlled. But the price of urea is under the control of the government and the government compensates the entire cost incurred in addition to the selling price through subsidy. Despite this, the shortage of urea is unusual because news of shortage of DAP and other complex fertilizers always comes before but farmers have rarely faced such a problem regarding urea. The shortage of urea may affect the production of Kharif season.