Fertilizer production in the initial two months following the Iran conflict has significantly decreased compared to the previous year, raising concerns among farmers as they prepare for the kharif sowing season.
According to official data, domestic fertilizer production from March 1 to April 26 reached 59.01 lakh tonnes (lt) this year, a decline from 76.09 lt produced during the same period last year. Even when factoring in an estimated additional output of 4-5 lt for the remaining days of April, the total production for the March-April period is expected to be only about 64 lt, approximately 12 lt lower than the previous year.
The most substantial drop has occurred in urea production, a crucial nitrogen-based fertilizer used extensively during the kharif season. Urea production fell to 35.42 lt this year from 46.67 lt in March-April of the prior year, reflecting a downturn of over 24 percent. Industry experts attribute this decline primarily to disruptions in liquefied natural gas (LNG) supplies, the essential feedstock for urea manufacturing, following the onset of the Iran war.
Farmers are already experiencing the impacts of this production shortfall, with many queuing at fertilizer retail outlets earlier than usual to secure supplies before sowing begins. As a result, sales of urea rose to 8.53 lt during the first half of April this year, compared to 7.71 lt in the same period last year, alongside notable increases in sales of DAP, complex fertilizers, and SSP.
In response to these developments, the government has reassured farmers and state administrations that fertilizer availability remains “strong, stable and well-managed.” The Department of Fertilizers reported that as of April 27, total fertilizer stocks stood at 190.21 lt, equating to about 49 percent of the anticipated kharif 2026 demand of 390.54 lt, which is a notable improvement over the 33 percent stock level at the same time last year.
Officials have stated that there are currently no significant issues concerning the availability of critical raw materials for producing urea and phosphatic fertilizers. They further noted that LNG supply to urea plants has improved to approximately 97 percent of requirements, recovering from a drop to 50-60 percent immediately following the conflict.
Despite rising global prices, the retail prices of major fertilizers have remained stable, with urea still priced at ₹266.5 per 45-kg bag, DAP at ₹1,350 per 50-kg bag, and TSP at ₹1,300 per 50-kg bag. Nevertheless, with production lagging from last year’s levels and farmers beginning to stock up early, industry officials caution that the upcoming weeks, leading up to peak kharif sowing, will be critical in determining whether the government’s assurances translate into adequate on-ground availability.
Published on April 28, 2026.
