India locks in fresh urea imports of 1.7 million tonnes

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India secures 1.7 million tonnes of urea imports at lower prices, improving fertiliser availability for farmers during kharif and rabi seasons.In what could help agricultural operations in the ensuing rabi (winter-spring) crop season, India has secured imports of 17 lakh tonnes (lt) of urea at landed (cost plus ocean freight) prices of $390.25-$393.65 per tonne.This price, at an international tender floated by Rashtriya Chemicals and Fertilizers (RCF) on July 29, is substantially lower than the contracted rates of $444.9-449.3 and $935-959 in earlier import tenders issued by state-owned companies.The RCF tender, the bids for which were opened on August 11 and finalised on Thursday, was for a total quantity of 17 lt, comprising 10 lt to be delivered in western Indian and 7 lt in eastern coast ports. As against this, it attracted offers aggregating 55.47 lt: 31.12 lt for western and 24.35 lt for eastern coast delivery.The lowest price bids came from the Binningen (Switzerland)-based Ameropa Group – at $390.25 (east coast) and $393.65 (west coast) per tonne.During the current 2026-27 fiscal (April-March), three import tenders have been floated so far. The first one, issued on April 4 and opened on April 15, secured 25 lt of imported urea at $935 (west coast) and $959 (east coast) per tonne. The second tender, dated May 27 and opened on June 8, contracted 17 lt imports at $444.9 (east coast) and $449.3 (west coast) per tonne.The falling prices are a reflection of two things.First, an overall easing of the energy supply shock emanating from West Asia, from the peak uncertainty of March-April, when global fuel and fertiliser prices went through the roof.Second, surplus urea availability in China. In-plant inventories there at the end of July were estimated about 76 per cent higher than a year ago. “There is also material from Iran that is finding its way into the market through China,” an industry source said.Story continues below this adIndia’s urea availability position has staged a significant improvement on account of both imports and domestic production. According to data from the Fertiliser Association of India, urea imports during April-June 2026, at 25.08 lt, was way higher than the 8.38 lt for April-June 2025. Domestic output, too, rose from 67.88 lt in April-June 2025 to 71.53 lt in April-June 2026.Also Read | Urea price crash opens window for reforms in India“The government has managed the supply situation well in urea, whether through proactiveness in procuring imports through global tenders or pushing GAIL (India) Ltd and Indian Oil Corporation to diversify the sourcing of liquefied natural gas (LNG) required for domestic manufacturing. Even as LNG imports from Qatar and Saudi Arabia dwindled to near-zero after the closure of the Strait of Hormuz, more supplies were contracted from other countries such as the US, Oman, Angola, People’s Republic of Congo, Indonesia, Trinidad and Norway,” the source added.For now, there is no shortage of urea for the ongoing kharif (monsoon) or upcoming rabi season. Availability of di-ammonium phosphate and complex fertilisers, however, remains a concern. The success achieved in widening the import sources of urea and LNG has not been replicated in the other fertilisers, including their key raw materials/intermediates like sulphur, phosphoric acid and ammonia.Harish Damodaran is National Rural Affairs & Agriculture Editor of The Indian Express. A journalist with over 33 years of experience in agri-business and macroeconomic policy reporting and analysis, he has previously worked with the Press Trust of India (1991-94) and The Hindu Business Line (1994-2014).     ... Read More Tags:fertiliserimports