India Uralchem Fertilizer JV Deal is expected to be formalized during Russian President Vladimir Putin’s New Delhi visit on Friday, marking one of India’s most significant fertilizer partnerships in recent years. As per early information shared by three industry sources, leading Indian fertilizer PSUs will join hands with Russia’s Uralchem Group — the country’s largest ammonium nitrate and potash producer — to build and operate a new urea manufacturing complex in Russia.
India Uralchem Fertilizer JV Deal – Stake Structure and Partners
Under the proposed joint venture structure, India Potash Ltd (IPL) and Rashtriya Chemicals & Fertilizers Ltd (RCF) will each hold 22.5% equity, while National Fertilizers Ltd (NFL) will take a 5% minority stake. Uralchem will retain the majority share, lead construction, operations and supervise natural gas-based production. This model is similar to India’s successful fertilizer JV in Oman, signalling a strategy long-term supply stability rather than seasonal procurement fluctuations.
How the India Uralchem Fertilizer JV Deal Fits India’s Demand Outlook
India is one of the world’s largest fertilizer-consuming nations, relying heavily on imports to support more than 40% of its labour force dependent on farming, and contributing nearly 15% to GDP. Fertilizer imports from Russia surged more than threefold — from $1.7 billion in 2021 to a peak of $2.7 billion in 2022, driven by geopolitical shocks and shifting global flows. Imports in April–October 2025 alone reached $10.2 billion, highlighting both dependence and volatility.
By producing urea directly in Russia through the India Uralchem Fertiliser JV Deal, India aims to secure volume-based pricing, reduce currency-linked risk, and buffer domestic markets from global fertilizer shocks. India imported 5.6 million tonnes of urea in FY 2024–25, down from nearly 9.8 million tonnes in 2020–21, but sourcing diversification remains essential even as domestic capacity expands.
A Strategic Partnership Beyond Trade
The joint venture will strengthen long-term fertilizer collaboration between India and Russia, even as Western sanctions reshape trade patterns.. India continues to source urea from Oman, Qatar, the UAE, and Saudi Arabia — and imports have surged, rising to 5.9 million tonnes between April and October 2025, compared to 2.5 million tonnes in the same period last year.
The India Uralchem Fertilizer Deal signals a strategic pivot from short-term import contracts toward integrated production at source — a step that could reshape India’s fertilizer supply chain for the next decade.
