India’s policy on urea | Explained
At present, there are 33 operational urea manufacturing units with total reassessed/installed capacity of 269.42 Lakh Metric Tonnes (LMT), according to the Union Fertilisers Ministry.“There is a need to increase the indigenous production of Urea. There is a gap in the indigenous production and demand of urea in the country which is filled by the import of urea,” the Government had said. “During 2025-26, 293.30 LMT of Urea was produced in the country,” the Government says.Fertiliser subsidyThe total fertilisers subsidy in 2025-26 is ₹ 2,17,281.10 crore.
- ▪At present, there are 33 operational urea manufacturing units with total reassessed/installed capacity of 269.42 Lakh Metric Tonnes (LMT), according to the Union Fertilisers Ministry.“There is a need to increase the indigenous production of
- ▪There is a gap in the indigenous production and demand of urea in the country which is filled by the import of urea,” the Government had said.
- ▪“During 2025-26, 293.30 LMT of Urea was produced in the country,” the Government says.Fertiliser subsidyThe total fertilisers subsidy in 2025-26 is ₹ 2,17,281.10 crore.
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Amid concerns of fertiliser shortage during the ongoing kharif season due to the situation in West Asia, greater demand because of El Niño and complaints of over-use of chemical fertilisers such as urea, the Cabinet Committee on Economic Affairs recently approved the National Investment Policy for Urea (NIPU)-2026.The new policy is aimed at self reliance in urea production, a sector which is dependent on imports. According to the Government, the policy will encourage new investments in the urea sector for setting up the gas based urea manufacturing units in the country.The key changes in the policy, compared to the existing policy, include the separation of fixed and variable costs for greater transparency, introduction of a viable Return on Equity (RoE) band with a floor at 12% and a…
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