Soon after India signed a contract to purchase urea at $530 per tonne (including cost and freight), global prices—especially in the Middle East—have surged. However, India is hoping that in the next bid, scheduled for 2nd September, prices may come down to around $500 per tonne
According to official data from the Ministry of Chemicals and Fertilizers, the Free on Board (FOB) price of urea was around $395 per tonne. However, due to the government’s decision to increase urea imports amid shortages faced by farmers and ongoing black marketing, prices have risen.
It has also been reported that China has been persuaded by Indonesia and Malaysia to reduce urea prices. As a result, it is expected that India may receive lower quotations in the next bidding round, which could lead to a reduction in urea prices by manufacturers in the Middle East.
In the last fiscal year (2024–25), India was able to manage the consumption of 38.79 million tonnes of urea due to carry-forward stocks. Otherwise, domestic production and imports were lower than the total consumption.
There has been a sudden surge in the demand for nitrogenous fertilizers, as farmers are increasingly shifting towards crops like paddy and maize, which require higher nitrogen content compared to oilseeds, cotton, and tur. Paddy acreage has increased from 390.8 lakh hectares last year to 420 lakh hectares as of 22nd August. A similar trend has been observed in maize cultivation as well.
