Fertilizer Production Likely to Decline by 10-15 Percent

27-Mar-2026 07:26 PM

Bangalore. A leading rating agency states that if the conflict between Iran and Israel in West Asia persists for an extended period, the production of chemical fertilizers in India could decline by 10–15 percent.

The import of raw materials used in their manufacture is not only being disrupted but has also become more expensive.

The cost of imported fertilizers is also proving to be high. This will increase the pressure on the industry's working capital, and the government's subsidy bill could rise by ₹20,000–₹25,000 crore.

According to the rating agency, the annual production of both Urea and Complex Fertilizers is likely to witness a decline of 10–15 percent.

Although the government is making every possible effort to ensure the adequate availability and supply of fertilizers from alternative sources, it will be crucial to deliver them to farmers in a timely manner, as the cultivation of Kharif crops is set to commence in June. India imports fertilizers in large quantities from abroad.