India is taking urgent steps to secure its urea supply, as the rising demands of urea during the ongoing Kharif sowing season has put s strain on domestic stocks. However, Union Agriculture Minister Shivraj Singh Chouhan in this context said that urea will be certainly supplied if the demand is genuinely for farming needs and the ministry is working promptly on this. National Fertilizers (NFL) has floated a tender to import 20 lakh tonnes (lt) of urea, a move that comes just days after a similar import order from Indian Potash (IPL) and follows reports of China easing export restrictions.
As per the latest updates as of August 1, India’s urea stock stood at 37.19 lt, a sharp decline from 86.43 lt, just one year ago. The decreasing quantity of reserves, combined with a 12 per cent increase in urea sales during the April-June period, have created significant pressure to boost availability.
The surge in the demand of Urea is due to higher acreage under paddy and maize, main crops of Kharif season. Good amount of rainfall this kharif sowing season has increased the use of urea in paddy and maize. Union Agriculture Minister Shivraj Singh Chouhan addressing the urgency said that we are working and collaborating with state agriculture ministers to ensure proper and timely supply of urea while also cracking down on potential misuse. Shivraj Singh Chouhan further said that “If the demand is genuinely for farming needs, urea will certainly be supplied; the ministry is working promptly on this”.
To facilitate imports and manage the financial impact, the government has already increased urea subsidy disbursements to fertilizer companies by 51.5 per cent to ₹31,983.6 crore during the first quarter of the fiscal year.
Tender floated by National Fertilizers (NFL), which demands for the import of 10 lt each on the east and west coasts, is a direct effort to augment domestic supply. The tender was floated by NFL on August 15 and is also expected to benefit from the reported agreement by China to sell 3 lt of urea to India. Industry sources note that a relaxation of China’s export restrictions could help temper global urea prices, which have climbed from around $425/tonne in May to $530/tonne. The outcome of the NFL tender, which will be opened on September 2, is poised to provide further clarity on the global supply-demand dynamics.