Fertilizer Import Costs Likely to Rise Sharply

27-May-2026 01:37 PM

New Delhi. Due to the ongoing tensions between Iran and the United States—and the consequent closure of the Strait of Hormuz—India is being compelled to import chemical fertilizers via longer routes and at higher prices. This is expected to result in a substantial increase in import costs.

According to the Union Ministry of Agriculture, the domestic demand for fertilizers during the 2026-27 Kharif season is projected to rise to 39.054 million tonnes. Given the limited domestic production, India is required to import massive quantities of chemical fertilizers from abroad every year. This time around, these imports are being procured at elevated prices.

According to official sources, the total import expenditure on chemical fertilizers exceeded $27 billion during the 2025-26 fiscal year. Prior to this, in the 2022-23 fiscal year, import costs had reached a new record high of $33.40 billion; the import expenditure for 2026-27 is now expected to surpass even that figure.

During the 2025-26 fiscal year (April–March), India imported 28.2 million tonnes of fertilizers, a figure that included 11.2 million tonnes of Urea, 6.4 million tonnes of DAP, and 3.7 million tonnes of MOP. Furthermore, India is also required to import raw materials from abroad to support its domestic production of fertilizers.