Besides gold, fertilizer imports have also contributed significantly to India’s ballooning trade imbalance. A deep dive into the recently-released trade data showed that India’s fertilizer import bill has zoomed over the year-ago period.
The merchandise trade deficit hit a record $41.68 billion in October, as non-oil items like fertilizers and gold pushed up the import bill and heightened external sector risks. The latest trade data shows that the cumulative import of fertilizers this fiscal until October is 82 per cent higher. In just four months from July-October, fertilizer imports were $8.09 billlion, up by a whopping 143.67 per cent, mainly due to record imports of urea in a short span. According to official data, urea imports rose by 228.43 per cent in July-October to 49.79 LT from 15.16 LT in the year-ago period.
An equally concerning fact is low level of domestic stock amid rising demand for the crop nutrients in the ongoing Rabi sowing season which leaves the government with little option but to import. Consequently, India is contributing to a spike in global prices by rushing to the market at a short span with a massive demand.
As reports of fertilizer shortage, particularly of Urea, started pouring in from across the country from July, with more acreage under paddy and maize with a good monsoon, the government rushed with import 60 lt of urea from the global market within 2-3 months in three tranches. Against this, the entire import of urea in 2024-25 was only 56.47 lt.
Imported urea now costs $ 400-410 per tonne (CFR) as against average $ 362/tonne (FOB) in November 2024 and imported DAP $ 680-700/tonne (CFR) now against $ 634/tonne year-ago. Imported urea reached a high of $ 530 per tonne (FOB) in August, but softened after China decided to ease export restrictions for some countries in September. Global rate of DAP had crossed $ 800/tonne in August.
“The main import period of fertilizers was from July when global prices reached their peak. The government needs to re-strategise its import policy so that it doe not affect the trade gap,” said an industry official.
Fertilizer ministry has discontinued the monthly updates on imports, sales, production, and subsidy starting in July, citing this as a factor contributing to the shortage.
The Fertilizer Ministry has discontinued the monthly updates on imports, sales, production, and subsidies starting in July, citing this as a factor contributing to the shortage.
Beefing up fertilizer import simultaneously has a positive aspect as the opening stock as on November 1 improved in many nutrients from the levels of September, though lower from year-ago level in some item. Urea stock as on November 1 was 50.54 lt against 68.16 lt year-ago, DAP 19.05 lt against 11.52 lt, Muriate of Potash (MOP) 7.33 lt against 7.41 lt, complex (combination of all nutrients) 36.21 lt against 31.13 lt.
The Centre, during the last Kharif season, introduced a ceiling of 50 bags of subsidized fertilizers per buyer per month and it is said to be continuing now. District magistrates have been regularly updated about the local top 20 buyers to check the genuineness of the buyers.
Published on November 23, 2025