India’s Urea Prices Fall 50% as Import Costs Ease, June 11

India’s urea import prices have fallen more than 50% in the latest tender, with landed prices dropping to $444.9-449.3 per tonne from $935-959 per tonne in an earlier procurement. The decline comes as China eases export restrictions on fertilizers. This price relief could reduce India’s fertilizer subsidy bill, which faced pressure from geopolitical disruptions in West Asia affecting global supply chains.

Import Prices Collapse Amid Easing Supply Pressure

National Fertilizers Ltd secured approximately 734,000 tonnes of urea in the latest tender. Aditya Birla Global Trading quoted the lowest price of $444.9 per tonne for 500,000 tonnes destined for India’s east coast, while Ameropa Asia offered $449.3 per tonne for 234,000 tonnes to the west coast. The price drop reflects improved availability from key exporters, particularly after China relaxed its export curbs on fertilizers. India has already secured about 2.5 million tonnes of urea, 1.5 million tonnes of diammonium phosphate, and 1 million tonnes of NPKs, with deliveries expected in June-July 2026.

Government Subsidy Bill Gets Relief

The Department of Fertilizers had sought a doubling of the fertilizer subsidy to 3.5 trillion rupees for FY27 to offset mounting losses from subsidized sales amid rising global costs. The sharp fall in procurement prices could lower this subsidy burden, easing pressure on government finances. Fertilizer policies face risks from Hormuz supply shocks, but the current price relief provides a temporary buffer against future disruptions.

Punjab Kharif Season Sees Adequate Urea Stocks

Against Punjab’s Kharif 2026 requirement of 14.50 lakh metric tonnes, the Department of Fertilizers ensured availability of 10.71 lakh metric tonnes as of June 9. Sales reached 6.25 lakh metric tonnes, leaving a closing stock of 4.46 lakh metric tonnes. An additional 39,167 tonnes were in transit. Paddy transplantation had not yet fully commenced, making existing stocks sufficient to meet anticipated demand.

India Remains Import-Dependent Despite Price Gains

India imported 11 million tonnes of urea in FY26, highlighting its continued reliance on global markets. The government increased urea allocations to 20 million metric tonnes for June-November 2026, including 8.7 million metric tonnes for nitrogen fertilizers. While current price relief is welcome, the question remains whether this marks a turning point or temporary relief in a volatile global market.

Final Thoughts

India’s urea import prices have halved to $444.9-449.3 per tonne, easing pressure on the government’s fertilizer subsidy bill. This relief depends on sustained supply from China and stable global conditions.

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