Lok Sabha Question No. 2441 (UNSTARRED), answered on 2026-02-13
Subject: Import of Urea
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri K E Prakash

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

UNSTARRED QUESTION NO. 2441 TO BE ANSWERED ON 13.02.2026

## Import of Urea

## 2441: Shri K E Prakash:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) whether the Government has taken note of the data of the Fertilizer Association of  India  indicating  that  Urea  imports  more  than  doubled  to  about  7.17  million tonnes during April-November 2025-26 compared to the corresponding period of the  previous  year,  while  domestic  Urea  production  declined  during  the  same period, if so, the details thereof;
- (b) the  reasons  for  the  decline  in  domestic  Urea  production  despite  repeated assurances of achieving self-reliance in fertilizers;
- (c) whether the increasing dependence on Urea imports has led to price pressures and exposes the farmers in the country to global supply disruptions and volatility, if so, the details thereof;
- (d) whether the Government has taken note of the impact of higher Urea prices on farmers in agrarian constituencies, including Erode Parliamentary Constituency in the State of Tamil Nadu, if so, the details thereof; and
- (e) the  policy  measures  being  taken  to  stabilise  prices,  enhance  domestic  Urea production capacity and reduce import dependence in a time-bound manner?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (SMT. ANUPRIYA PATEL)

- (a): The  details  of  the  production  and  import  of  Urea  in  the  country  during  AprilNovember 2024-25 and April-November 2025-26 are tabulated below:

| Year              |   Production of Urea (in LMT) |   Import of Urea (in LMT) |
|-------------------|-------------------------------|---------------------------|
| 2024-25 (Apr-Nov) |                        205.21 |                     32.55 |
| 2025-26 (Apr-Nov) |                        197.61 |                     71.71 |

(b): The two units of Nagarjuna Fertilizers and Chemicals Ltd. (NFCL-Unit I & II) at Kakinada with each having a production capacity of 5.97 LMT per annum are under shutdown  w.e.f  5 th   June  2024  and  1 st   June  2024  respectively  on  account  of purchasing of Ammonia-Urea assets of NFCL by AM Green Ammonia (India) Private Ltd.  under  SARFEASI  process  from Asset  Reconstruction  Enterprise  Private  Ltd. (ACRE).

Further, the Kanpur Fertilizers and Chemicals Ltd. (KFCL)-Kanpur with a production capacity of 7.22 LMT per annum is under shutdown w.e.f 1 st  April 2025.

(c) to (e): Under the Urea Subsidy Scheme, Urea is provided to the farmers at a statutorily notified Maximum Retail Price (MRP). The MRP of 45 kg bag of urea is Rs.242 per bag (exclusive of charges towards neem coating and taxes as applicable). The  difference  between  the  delivered  cost  of  urea  at  farm  gate  and  net  market realization by the urea units is given as subsidy to the urea manufacturer/importer by the  Government  of  India.  Accordingly,  all  farmers  across  the  country  are  being supplied urea at the subsidized rate .

With regard to Urea, the Government had announced New Investment Policy (NIP) 2012 on 2 nd  January, 2013 and its amendment on 7 th  October, 2014 to facilitate fresh investment in the Urea sector and to make India self-sufficient in the Urea sector. Total 6 new Urea units have been set up under NIP-2012 which includes 4 Urea units set up through Joint Venture Companies (JVC) of nominated PSUs and 2 Urea units set up by the private companies. The units set up through JVC are Ramagundam Urea unit of Ramagundam Fertilizers and Chemicals Ltd (RFCL) in Telangana and 3 Urea units namely Gorakhpur, Sindri and Barauni of Hindustan Urvarak & Rasayan Limited (HURL) in Uttar Pradesh, Jharkhand and Bihar, respectively. The units set up by private companies are Panagarh Urea unit of Matix Fertilizers and Chemicals Ltd. (Matix)  in  West  Bengal;  and  Gadepan-III  Urea  unit  of  Chambal  Fertilizers  and Chemicals Ltd. (CFCL) in Rajasthan. Each of these units has installed capacity of 12.7 Lakh Metric Tonne per annum (LMTPA). These units are highly energy efficient as they are based on latest technology. Therefore, these units have together added Urea production capacity of 76.2 LMTPA, thereby total indigenous Urea production capacity  (Reassessed  Capacity,  RAC)  has  increased  from  207.54  LMTPA  during 2014-15  to  283.74  LMTPA  during  2023-24.  .  Further,  an  exclusive  policy  for  the revival  of  Talcher  unit  of  FCIL  through  JVC  of  nominated  PSUs  namely  Talcher Fertilizers Limited (TFL) by setting up a new Greenfield Urea plant of 12.7 LMTPA at coal  gasification  route  has  also  been  approved.  Recently,  the  Union  Cabinet  has approved the proposal for setting up of a new Brownfield Ammonia-Urea Complex of 12.7 Lakh Metric Tonnes (LMT) annual capacity of Urea production within the existing premises  of  Brahmaputra  Valley  Fertilizer  Corporation  Limited  (BVFCL),  Namrup, Assam which will be named as Assam Valley Fertilizer and Chemical Company Ltd. (AVFCCL).

In addition, the Government also notified the New Urea Policy (NUP) - 2015 on 25 th May,  2015  for  the  existing  25  gas-based  Urea  units  with  one  of  the  objectives  of maximizing  indigenous  Urea  production  beyond  RAC.    The  NUP-2015  has  led  to additional  production  of  Urea  by  20-25  LMT  as compared  to  the  production  during 2014-15 annually.

Above steps together have facilitated increase of Urea production from level of 225 LMT per annum during 2014-15 to a record Urea Production at 314.07 LMT during 2023-24. During 2024-25, 306.67 LMT of Urea was produced in the country.

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