India Reassesses Fertilizer Subsidies as Urea Import Costs Drop 50%

The Government of India is reassessing its fertilizer subsidy estimates for the 2026-27 fiscal year following a sharp decline in global urea prices. Recent bids for a National Fertilizers Ltd tender for 1.7 million tonnes ranged between $444 and $605 per tonne, marking a drop of approximately 50% from previous prices of $935–$959 per tonne.

Officials attribute the price decrease to the entry of new exporting nations and the easing of export restrictions by China. This trend follows a period of price volatility triggered by conflict in West Asia on February 28. To further lower import dependence and protect soil health, Prime Minister Narendra Modi has appealed to farmers to reduce chemical fertilizer use by 50%.

The Ministry of Chemicals and Fertilisers confirmed that India maintains strong fertilizer security, with 197.56 lakh tonnes of stock available against a kharif season requirement of 383.9 lakh tonnes. The Ministry of Agriculture and Farmers Welfare also reduced kharif urea requirements to 19 million tonnes after the India Meteorological Department downgraded its monsoon forecast. India continues to secure its supply through long-term agreements and joint ventures with partners including Russia, Oman, Malaysia, and the United States.