Industry Odisha Bureau, Oct 23: India’s urea imports surged 40.5% in April–September. Yet domestic sales fell 4.1% as a weak monsoon curbed farm demand. Other chemical fertilisers also recorded lower sales.
India’s urea imports surged 40.5% in April–September, the first half of the fiscal year. The rise came despite a policy push to reduce reliance on chemical fertilisers. At the same time, domestic sales of urea declined.
Imports totalled 5.589 million tonnes over the six months. That compares with 3.979 million tonnes in the same period a year earlier. Urea is the most widely used fertiliser in India. It supplies nitrogen, a key nutrient for crop growth.
Shipments began slowly, at 583,000 tonnes in April. Supply chains were then disrupted by the crisis in West Asia. Imports picked up sharply and peaked at 1.534 million tonnes in July.
Domestic urea production also grew, rising 4% during the period. Sales, however, moved in the opposite direction. They fell 4.1% to 18.52 million tonnes, industry data showed. Higher imports did not translate into stronger farm consumption. The reported data does not explain why imports and output rose together.
A senior executive at a large urea company blamed weak rainfall for lower sales. Poor rains across large parts of India discouraged farmers from buying soil nutrients.
Other chemical fertilisers faced steeper pressure. NP/NPK fertilisers combine nitrogen, phosphorus and, in some cases, potassium. Their production fell 35.5%, while imports declined 31.4%. High sulphur prices, linked to geopolitical tensions, weighed on supplies. Sales dropped 22.2% to just over 6 million tonnes.
Di-ammonium phosphate, or DAP, is mainly used to supply phosphorus to crops. It is India’s second most used soil nutrient. DAP imports fell 11.2%, while domestic production slipped 0.3%. Its sales eased only marginally, by 0.6%.
Sales of muriate of potash, or MOP, dropped 11.7%. MOP is a key source of potassium for crops. Single super phosphate sales fell a more modest 1.4%.
The monsoon was a major factor behind softer demand, industry executives indicated. The four-month monsoon ended with rainfall 13% below normal. The India Meteorological Department (IMD) had forecast a smaller shortfall of 10%. It was the weakest monsoon in more than a decade. Drought hit several states that are key to farm output.
The monsoon shapes the cultivation of rice, pulses, sugarcane and oilseeds. Yet kharif sowing, from June to September, was only 1% lower than last year. Kharif crops are those sown with the onset of the monsoon. This suggests farmers largely planted their crops but held back on inputs. Erratic rainfall made them reluctant to spend on fertilisers.
The figures also highlight India’s exposure to global supply shocks. Tensions in West Asia affected urea shipments early in the fiscal year. High sulphur prices, meanwhile, hit complex fertiliser supplies. Such pressures show the value of steady domestic production.
For now, the market presents a mixed picture. Urea supply has expanded through both imports and local output. Demand, however, remains closely tied to rainfall. That link will continue to shape fertiliser purchases in the months ahead.
