India’s urea import cost falls 57% from May peak, easing subsidy pressure
Urea landed costs fell to $406 a tonne from $947 in May as India diversified supplies. Imports of 4.74 million tonnes lifted end-August stocks to 7.51 million tonnes, while farmer-facing urea and DAP prices remain fixed.
What happened
Department of Fertilisers, Government of India · India’s urea import cost fell sharply as supplies diversified, easing projected fertiliser subsidy pressure.
Key facts
- Urea landed cost fell 57% to $406/tonne from $947/tonne in May 2026
- Global urea price fell 23% year-on-year in August
- Potential fertiliser subsidy increase: Rs 15,000-20,000 crore
- Urea imports: 4.74 million tonnes
- Urea stock by end-August: 7.51 million tonnes, up 78% year-on-year
What changed
India’s urea import cost fell sharply as supplies diversified, easing projected fertiliser subsidy pressure. State import agencies bought 4.74 million tonnes, lifting stocks, while farmer-facing urea and DAP retail prices remain fixed despite global price volatility.
Why this matters
Lower urea import costs and higher inventories should reduce near-term supply risk, but fixed farmer prices keep execution focused on subsidy administration rather than retail pricing.
What to watch
- India's next fertilizer subsidy allocation and any supplementary budget requirement.
- Monthly urea imports, domestic production, inventory levels and sales/offtake during the sowing season.
- International urea, ammonia, natural-gas and shipping-rate movements.
- Any revision to controlled farmer prices for urea or DAP.
- Monsoon distribution, reservoir levels, acreage data and major crop-price trends.