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India Urea Import Prices Drop 60% to $390/tonne

By ThePip DeskIndia Urea Import Prices Drop 60% to $390/tonne

India’s urea import prices have plummeted 60% to $390/tonne from April’s peak. This significant drop is set to ease the government’s fertilizer subsidy budget.

India has witnessed a significant 60% reduction in urea import prices, now at $390 per tonne. This decline comes from a peak of nearly $1,000 per tonne recorded in April, driven by easing global supplies and the nation’s diversified sourcing strategy.

Key Price Movements

  • Urea import prices dropped by 60% to $390 per tonne.
  • Prices peaked at nearly $1,000 per tonne in April.
  • Rashtriya Chemicals and Fertilizers (RCF) secured 1.7 million tonnes at $390-$393 per tonne.
  • RCF’s April 2026 tenders saw prices between $935-$959 per tonne.
  • National Fertilizers (NF) recorded bids around $449 per tonne in June.

This significant price softening is expected to lead to a reassessment of India’s fertiliser subsidy budget for the current fiscal year. The budget had previously been projected higher due to a surge caused by the West Asia conflict.

Subsidy Budget Overview

  • Government has spent over Rs 70,000 crore on fertiliser subsidies in 2026-27 so far.
  • This represents 40% of the estimated Rs 1.77 lakh crore budget.
  • Actual subsidy for FY25 is projected to exceed Rs 2.17 lakh crore by Rs 15,000-Rs 20,000 crore.
  • Internal estimates from April-May had feared a subsidy bill potentially reaching Rs 3 lakh crore.

India consumed 40 million tonnes (MT) of urea in FY26, with 10 MT being imported. The earlier price increases from March 2026 stemmed from disruptions in LNG supplies, a crucial feedstock for urea production, due to the West Asia conflict.

Diversified Sourcing Strategy

  • Urea is sourced from Oman, Malaysia, Vietnam, Georgia, Nigeria, Russia, Finland, Egypt, Algeria, Turkey, and the Netherlands.
  • Di-ammonium phosphate (DAP) and NPKs are procured from Russia, Morocco, Egypt, USA, Jordan, South Korea, Tunisia, and Saudi Arabia.
  • India imports approximately 70% of its fertilisers and raw materials.
  • Annual consumption of various fertiliser variants exceeded 70 MT in FY26.

The strategic diversification of import sources, coupled with improved global supply chains, underpins this substantial cost reduction. This proactive approach aims to mitigate future risks and stabilize a critical sector for India’s agricultural economy.

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