India makes significant strides in fertilizer self-reliance with record domestic output in 2025

By: Team India Tracker

Total fertilizer output, covering urea, di-ammonium phosphate (DAP), complex fertilizers such as NPKs, and single super phosphate (SSP), rose from 433.29 lakh tonnes in 2021 to 467.87 lakh tonnes in 2022.

In 2025, close to 73 percent of India’s total fertilizer demand was met through domestic production, marking an important step forward in the country’s pursuit of self-reliance in this critical agricultural input. Ensuring fertilizer security and the timely availability of essential nutrients to farmers has remained a key policy priority for the Government. To this end, long-term supply agreements have been secured for vital raw materials, and a strategy of strategic diversification has been adopted to reduce vulnerability to global market volatility, geopolitical disruptions, and supply chain shocks.

These policy measures have translated into a sustained and gradual increase in domestic fertilizer production over the last five years. Total fertilizer output, covering urea, di-ammonium phosphate (DAP), complex fertilizers such as NPKs, and single super phosphate (SSP), rose from 433.29 lakh tonnes in 2021 to 467.87 lakh tonnes in 2022. Production then witnessed a sharp rise to 507.93 lakh tonnes in 2023, followed by a further increase to 509.57 lakh tonnes in 2024. This momentum continued into 2025, when domestic production reached a record high of 524.62 lakh tonnes. The consistent upward trend highlights the growing strength of India’s fertilizer manufacturing base and reflects the impact of sustained government intervention.

Source: Department of Fertilizers, Ministry of Chemicals and Fertilizers

The expansion in domestic output has been driven by several structural initiatives, including the commissioning of new fertilizer plants, the revival of previously shut units, and a strong push for indigenous manufacturing. In parallel, the assured availability of critical raw materials has helped stabilise production cycles. Together, these efforts have strengthened the resilience, capacity, and long-term sustainability of the fertilizer sector.

In terms of policy support, the Government introduced the Nutrient Based Subsidy scheme on 1 April 2010 for phosphatic and potassic fertilizers. Under this framework, subsidies are fixed on the basis of nutrient content for P and K fertilizers, including DAP. Subsidy rates are notified either annually or bi-annually. The P and K fertilizer segment has been decontrolled, allowing companies to determine maximum retail prices within reasonable limits. While prices are monitored by the Government, fertilizer companies are free to produce or import these products in accordance with market demand.

Further reinforcing this approach, the Union Cabinet approved revised subsidy rates under the Nutrient Based Subsidy scheme on 28 March 2025. The revised rates apply to phosphatic and potassic fertilizers, including NPKS grades, for the 2025 Kharif season spanning from 1 April to 30 September 2025. The total subsidy allocation for this period has been set at ₹37,216.15 crore, which is approximately ₹13,000 crore higher than the subsidy provided during the preceding Rabi season. This enhanced outlay is aimed at cushioning farmers from rising input costs while ensuring adequate fertilizer availability during the peak sowing period.

Alongside production and subsidy reforms, the Government has also focused on improving transparency and uniformity in the fertilizer market through the One Nation One Fertilizer scheme. This initiative introduces a single brand identity, ‘Bharat’, for all subsidised fertilizers sold across the country. Under the scheme, products such as urea, DAP, muriate of potash, and NPK fertilizers are marketed under uniform labels like Bharat Urea, Bharat DAP, or Bharat NPK, with the name of the manufacturing company displayed in smaller print.

The objective of this common branding is to minimise confusion among farmers and eliminate the perception of quality differences that arose earlier due to the same fertilizer being sold under multiple brand names. By standardising branding and packaging, the scheme ensures that farmers in different states receive fertilizers of consistent quality, backed by government assurance, thereby strengthening trust in the public distribution system and improving the overall efficiency of fertilizer usage.