Growth in domestic production is driven by establishing new and reviving old plants and assured availability of raw materials.
Status of Fertilizer Production in India
- Record Output: Total domestic production (Urea, DAP, NPKs, and SSP) touched 524.62 Lakh Metric Tonnes (LMT) in 2025.
- Growth Trajectory: Production has shown a consistent upward trend. (see infographic)
- Reduced Import Dependence:73% of total fertilizer requirement is met through domestic production in 2025.
Significance of Growth of Indian Fertilizer Industry
- Fiscal Prudence: Reduced imports significantly lower the Current Account Deficit (CAD) and the fertilizer subsidy burden.
- Price Stability: Shielding Indian farmers from global price volatility and ensures stable input costs and food inflation control.
- Food Security: Assured availability of fertilizers is vital for sustaining crop yields and meeting the food requirements of the population.
Initiatives for Increasing Domestic Fertilizer Production
- Revival of Closed Units: E.g., Gorakhpur, Ramagundam, Sindri, Barauni etc. to significantly ramp up urea capacity.
- Strategic Sourcing: Long-Term Agreements (LTAs) for key raw materials (like rock phosphate) to ensure uninterrupted manufacturing.
- Diversification of supply sources: Mitigating risks associated with single-source dependency.
- Indigenous Technology: Promotion of 'Make in India' through liquid Nano Urea and Nano DAP to enhance nutrient efficiency.
