India fertilizer production target for May 2026 has been set at 3.4 million tonnes (MT) after LNG supplies stabilized following disruptions in West Asia. This move is expected to strengthen domestic availability ahead of the peak agricultural season.
The government aims to produce 2.2 MT of urea, 0.4 MT of DAP, and 0.8 MT of NPK fertilisers during the month. Officials confirmed that several urea plants, which had temporarily shut down due to gas shortages, are now resuming operations.
Recovery After LNG Disruptions
The supply chain faced challenges in March due to the West Asia crisis. This led to reduced LNG availability and a drop in urea production to 1.65 MT.
However, the situation improved in April. Urea production recovered to 2.09 MT, slightly lower than 2.18 MT recorded in April last year. With LNG supplies now secured, production is expected to stabilize further in May.
To support domestic demand, the government has also taken proactive steps:
- A global tender for 2.5 MT of urea imports has been processed
- A tender for 1.9 MT of NPK fertilisers has been floated
These measures will help ensure smooth supply during the upcoming kharif season.
Strong Fertilizer Availability
Since the beginning of the Middle East conflict, India has added 8.4 MT of fertilisers to its stock. This includes:
- 6.77 MT from domestic production
- 1.63 MT from imports
Officials stated that fertilizer availability remains strong and continues to exceed current demand.
Strategic Stocking for Kharif Season
The agriculture department has estimated the total fertilizer requirement for kharif 2026 at 39.05 MT. Out of this, 19.57 MT (nearly 50%) has already been stocked by states.
This reflects improved planning and early procurement strategies by the government.
Stable Prices Despite Global Pressure
Despite rising global prices, retail fertilizer prices in India remain unchanged:
- Urea is sold at ₹266.50 per 45 kg bag
- DAP is priced at ₹1,350 per 50 kg bag
Globally, urea prices have crossed ₹4,000 per bag. Still, subsidies are helping maintain affordable rates for farmers.
Officials have indicated that fertilizer subsidy costs may increase beyond the ₹1.77 lakh crore budget estimate for FY27, due to rising input costs.
Conclusion
The India fertilizer production target reflects strong policy support and improved supply conditions. With LNG availability restored and imports secured, the country is well-positioned to meet agricultural demand in the coming months.
The India fertilizer production target also highlights the government’s focus on supply stability, price control, and farmer support.
