India Diversifies Fertilizer Imports to Reduce China Dependence

Union Minister for Chemicals and Fertilizers Jagat Prakash Nadda informed the Lok Sabha on July 24, 2026, that India is diversifying its fertilizer import sources to mitigate global supply chain disruptions and reduce dependence on China, which has reportedly withheld specialty fertilizer exports. To secure supply, the government established long-term agreements with Saudi Arabian companies for 31 lakh tonnes of di-ammonium phosphate (DAP) annually and Russian suppliers for 26.50 lakh tonnes of DAP/NPK fertilizers, alongside agreements with Russia, Germany, and Turkmenistan for muriate of potash.

Between April and June of the current fiscal year, India imported 25.08 lakh tonnes of urea and 7.11 lakh tonnes of DAP. Nadda reported that domestic production for the same period reached 115.72 lakh tonnes. Fertilizer supplies for the Kharif season remain adequate despite geopolitical conflicts in West Asia. Between April 1 and July 19, 2026, urea availability reached 163.78 lakh metric tonnes against a requirement of 109.40 lakh metric tonnes, and DAP availability was 39.54 lakh metric tonnes against a 31.57 lakh metric tonne requirement.

To further stabilize the sector, the Cabinet Committee on Economic Affairs approved the National Investment Policy for Urea-2026 on July 15, 2026. The government is also sourcing water-soluble fertilizers from Belgium, Egypt, Germany, Morocco, and the USA, while coordinating with the Ministry of Petroleum and Natural Gas to manage shortages of critical inputs like Isopropyl Alcohol and Methanol.