A Looming Crisis for Farmers
India is currently grappling with a severe shortage of urea, a critical fertilizer, creating a crisis for farmers during the peak of the Kharif sowing season. Domestic stockpiles have plummeted to less than half of last year's levels, while a surge in international prices and disruptions in production have created a perfect storm of scarcity. This shortfall threatens to impact crop yields across the country, leaving farmers in long queues and the nation's food security in a precarious position.
Demand Spikes as Supplies Plummet
The root of the crisis lies in a dramatic mismatch between supply and demand. Thanks to a favorable monsoon, India has witnessed a record area of sowing for Kharif crops. However, this has been led by an increase in the cultivation of paddy and maize—two crops that are heavily dependent on urea for healthy growth. This has driven up the demand for the fertilizer at the precise moment that national reserves are critically low. According to official data, the country's urea stock on August 1, 2025, stood at just 37.19 lakh tonnes, a staggering 49.24 lakh tonnes less than the 86.43 lakh tonnes available at the same time last year.
Global Headwinds and Domestic Hurdles
The shortage is being compounded by a combination of international market pressures and domestic production challenges. The global price of urea has surged from around $400 per tonne in May to $530 per tonne, making costly imports the only immediate solution. This situation has been worsened by China, a major supplier, having halted its urea exports to India. Even if this ban is lifted, it would take over a month for new shipments to reach farmers. On the home front, domestic production has also been hit. Key manufacturing plants have reportedly faced production issues, further squeezing the already tight supply.
An Unusual Shortage
While shortages of other fertilizers like diammonium phosphate (DAP) are not uncommon, a deficit of urea on this scale is highly unusual. Urea is a price-controlled and heavily subsidized commodity, which typically ensures a more stable supply. The current crisis is therefore particularly alarming for both farmers and policymakers. The scarcity is forcing farmers to stand in long lines, often in the rain, to secure the fertilizer essential for their crops at this critical growth stage. With stocks of other complex fertilizers also running lower than last year, the agricultural sector is facing a multi-front challenge that could have significant consequences for the season's output.
Harvest of Trouble
- Critically Low Stock: India's domestic urea stock is less than half of what it was at the same time last year, creating a severe deficit during the peak Kharif season.
- Surging Demand: A good monsoon has led to record sowing of urea-intensive crops like paddy and maize, causing a sharp increase in demand for the fertilizer.
- Global Price Shock: The international price of urea has jumped to $530 per tonne, while a halt in exports from China has further constrained supply options.
- Production Setbacks: The crisis is being worsened by production issues at several key domestic fertilizer plants, limiting the country's ability to meet the shortfall internally.
