India is accelerating efforts to strengthen fertiliser self-reliance through higher domestic production, diversified imports, and improved supply chain monitoring to safeguard food security amid volatile global markets.
Since 2014-15, the country has commissioned six new urea plants, adding 76.2 lakh metric tonnes per annum (LMTPA) of production capacity and increasing total installed urea capacity from 207.54 LMTPA to 269.42 LMTPA in 2026-27. On July 15, 2026, the Cabinet Committee on Economic Affairs approved the National Investment Policy for Urea-2026 (NIPU-2026) to encourage further investment and boost domestic production.
To ensure uninterrupted supplies, India procured 25 lakh metric tonnes (LMT) of urea through global tenders in April 2026, followed by 17.7 LMT in June, while also directing Indian missions overseas to identify new fertiliser suppliers.
The six new facilities include Ramagundam Fertilizers and Chemicals Ltd. (RFCL), three Hindustan Urvarak and Rasayan Ltd. (HURL) plants at Gorakhpur, Sindri and Barauni, Matix Fertilizers and Chemicals Ltd., and Chambal Fertilizers and Chemicals Ltd., each with an annual capacity of 12.7 LMTPA.
Backed by the New Urea Policy (NUP)-2015, domestic urea production increased from 225 LMT in 2014-15 to a record 314.07 LMT in 2023-24, before reaching 293.30 LMT in 2025-26, significantly reducing import dependence.
The government is also developing two additional 12.7 LMTPA urea projects at Talcher Fertilizers Ltd., based on coal gasification technology, and Assam Valley Fertilizer and Chemical Company Ltd. (AVFCCL). Together, they will add another 25.4 LMTPA of production capacity.
To improve fertiliser availability, the government monitors distribution through the Integrated Fertilizer Management System (iFMS), supported by monthly allocation plans and regular coordination with state governments.
For phosphatic and potassic (P&K) fertilisers, the government has approved ₹41,533.81 crore under the Nutrient Based Subsidy (NBS) scheme for the Kharif 2026 season while introducing measures to encourage domestic phosphatic fertiliser production.
The government’s integrated strategy of expanding production capacity, diversifying imports, and strengthening distribution reflects its long-term focus on reducing import dependence and ensuring fertiliser security for the country’s agricultural sector.
