China export curbs fail to dent India's fertiliser supply as stocks remain adequate: FAI Chairman

New Delhi [India] December 9 (ANI): India has successfully shielded its fertiliser supply chain from the impact of China's export restrictions by diversifying import sources and securing long-term contracts, Fertiliser Association of India (FAI) Chairman S Sankarasubramanian said on Tuesday, adding that the country remains well stocked ahead of the key agricultural season.

Sankarasubramanian, who is also Managing Director and CEO of Coromandel International, told ANI that India's preparedness and timely government interventions have ensured there is no shortage of di-ammonium phosphate (DAP), NPK complexes or urea despite China's reduced shipments.

"India is able to manage the situation by entering into long-term supply agreements with the Middle East, African countries and Russia. That is why non-supply from China is not impacting India at this point," he said on the sidelines of the curtain raiser for the FAI Annual Seminar 2025, which is in New Delhi.

He said Middle Eastern suppliers and Morocco remain key sources of DAP, while Russia continues to supply NPKs. The industry, he added, had secured additional cargoes well ahead of time, leaving the country "adequately covered."

A favourable monsoon has boosted fertiliser consumption, but Sankarasubramanian said the government had already accounted for higher demand during both the rabi and kharif seasons. "Urea is also available adequately across states, and we don't see any challenge," he said. While acknowledging occasional mismatches in some pockets, he noted that "overall, there is no shortage of fertilisers in the country."

India has stepped up imports this year, bringing in 8-9 million tonnes of urea through November 2025, compared with 5.6 million tonnes a year earlier. DAP imports rose to 7 million tonnes from 4.5 million tonnes, NPKs to 3.3 million tonnes from 2.2 million tonnes, while potash imports eased to 3 million tonnes from 3.5 million tonnes.

Current stocks stand at 5 million tonnes of urea, slightly below the 6.5 million tonnes a year ago. Still, DAP inventories have risen to 1.7 million tonnes from 0.9 million tonnes and NPK stocks to 3.5 million tonnes from 2.5 million tonnes, he said.

Sankarasubramanian noted that India's domestic urea capacity has expanded by about 7 million tonnes in recent years following the government's revival of several ailing plants. Additional capacity under development is expected to move the country closer to self-sufficiency. "I am very confident that in the next few years, India will become reasonably self-sufficient in urea production," he said.

He added that the industry is taking cues from urea to build Atmanirbhar Bharat in the phosphatic sector, with several companies announcing expansion plans to reduce import dependence.

Digitalisation of the nutrient-based subsidy system and timely government payments have improved liquidity for manufacturers and enabled advanced raw material sourcing, he said. The transition to direct benefit transfer for farmers will accelerate once structural issues, such as identification of genuine beneficiaries and tenancy data gaps, are resolved.

Sankarasubramanian also stressed the need to drive sustainability alongside productivity gains, including reducing the sector's carbon footprint through the adoption of green ammonia. He said nano urea and nano DAP, which require much smaller application volumes, are being promoted through farmer education efforts.

India's fertiliser consumption stands at nearly 70 million tonnes, serving more than 140 million farming households. Domestic production has climbed to 51 million tonnes in 2024-25 from 38 million tonnes a decade ago, supported by more than 150 producers.

During the summit, Suuresh Kumar Chaudhari, Director General, FAI, said, "India's fertiliser ecosystem is entering a decisive decade where innovation, sustainability and digital intelligence will redefine nutrient use."

In FY 2024-25, more than Rs 1.9 lakh crore were extended through the urea and nutrient-based subsidy frameworks.

Additionally, new capacity creation, together with strategic bilateral partnerships with resource-rich nations such as Saudi Arabia, Jordan, Morocco, Qatar, and Russia, is strengthening supply security and supporting steady growth in nutrient consumption despite global market fluctuations, he added. (ANI)

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