India's urea stock nearly 50 pc higher than Kharif requirement; production capacity rises to 269.42 LMTPA: Govt
New Delhi, July 24
India has maintained a comfortable urea inventory for the ongoing Kharif 2026 season, with stocks nearly 50 per cent higher than the seasonal requirement, the government informed Parliament on Friday.
In a written reply in the Lok Sabha, Union Minister for Chemicals and Fertilizers Jagat Prakash Nadda said the total availability of urea during the Kharif 2026 season stood at 163.78 lakh metric tonnes (LMT) against a requirement of 109.40 LMT, translating into a surplus of about 47.9 per cent.
The minister also said the country's reassessed indigenous urea production capacity has increased from 207.54 lakh metric tonnes per annum (LMTPA) in 2014-15 to 269.42 LMTPA in 2026-27.
Highlighting the rise in domestic production, Nadda said urea output touched a record 314.07 LMT in 2023-24 and stood at 293.30 LMT in 2025-26, significantly higher than the annual average production of 210.72 LMT recorded during 2004-05 to 2013-14.
The minister said the government has established six new urea manufacturing units under the New Investment Policy-2012, adding a combined production capacity of 76.2 LMTPA to strengthen domestic fertilizer production.
"The Government continuously monitors the availability of critical fertilizer inputs to ensure uninterrupted production and availability of fertilizers. Natural gas is the principal feedstock for urea production," Nadda said.
He noted that as domestic natural gas availability remains insufficient to meet the fertilizer sector's requirement, demand is met through a combination of domestic gas and imported RLNG.
"The Government has also implemented a gas pooling mechanism for the urea sector to facilitate a uniform pooled price of natural gas for gas-based urea plants," the minister said.
Nadda further informed the House that the Cabinet Committee on Economic Affairs (CCEA), on July 15, 2026, approved the National Investment Policy for Urea-2026 for Aatmanirbhar Bharat (NIPU-2026) to encourage fresh investments in the urea sector.
To curb malpractices in fertilizer distribution, fertilizers continue to be regulated under the Essential Commodities Act, 1955. Between April 1 and July 17, 2026, state enforcement agencies conducted 1,58,886 raids, issued 8,262 show-cause notices, suspended or cancelled 2,692 licences, and registered 247 FIRs, according to the minister.
— ANI
Reader Comments
Impressive numbers, but I hope the distribution reaches small farmers in rural areas without corruption. The raids and FIRs are good, but we need more transparency in the supply chain. Dairy and crop farmers in my village still struggle with timely access.
Finally some good news for agriculture! The gas pooling mechanism is a smart move to keep prices uniform for urea plants. But why are we still importing RLNG when we have domestic gas? Need more investment in natural gas exploration. Still, kudos to the ministry! 🇮🇳
As someone from a farming family in Karnataka, this is reassuring. Urea is crucial for paddy and sugarcane. The 1.5 lakh+ raids show enforcement is serious. But I wonder how much of this surplus actually reaches the ground level without middlemen siphoning it off. 🤔
Record urea production of 314 LMT is commendable! But let's not forget the environmental impact of excessive urea use. We need to promote neem-coated urea and soil testing to prevent overuse. Self-reliance is good, but sustainable farming is equally important. Just my two paise.
As someone working in agri-business, this is impressive progress. India's urea production has come a long way since 2014. The new investment policy (NIPU-2026) should attract more players. Just hope the subsidy burden doesn't strain the budget too much. Balanced approach needed.
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