India's 163.65 LT Fertilizer Buffer and Surging Output Seen Sufficient to Cover Kharif Demand
With 163.65 lakh tonnes in stock as of July 2 — 43% of the full Kharif requirement — and Q1 FY27 urea and DAP output both exceeding targets, the government says supply for the July-September stretch is well in hand.
The short answer
India held 163.65 lakh tonnes of fertilizer stock as on July 2, 2026, covering 43% of the Kharif season's total demand of 383.9 lakh tonnes for April-September. Domestic production in Q1 FY27 outpaced targets for both urea and DAP, while natural gas supply to urea plants has been fully restored to 100% after disruptions caused by the US-Israel conflict with Iran. The government says diversified imports, higher domestic output, and diplomatic outreach across eleven-plus countries have secured adequate supply for the remainder of the sowing season.
Stock position
Where India's Fertilizer Inventory Stands at the Midpoint of Kharif
As on July 2, 2026, India's total fertilizer inventory stood at 163.65 lakh tonnes (LT) — equivalent to 43% of the full Kharif season requirement of 383.9 LT for the April-September period, according to the Fertilizers Ministry.
The stock breakdown reveals a broadly distributed buffer across nutrient categories:
- Urea: 69.08 LT
- Complex (NPK): 45.64 LT
- Single Super Phosphate (SSP): 23.09 LT
- Di-ammonium Phosphate (DAP): 16.64 LT
- Muriate of Potash (MoP): 8.90 LT
With April-June already elapsed, the government's confidence rests on whether this buffer, combined with ongoing domestic production and imports in transit, can bridge the July-September gap without regional shortfalls.
Output surge
Q1 FY27 Production Beats Targets for Urea and DAP
Domestic manufacturing delivered a notable upside in the first quarter of FY27. Urea output reached 71.55 LT against a set target of 67.86 LT, while DAP production came in at 9.84 LT, ahead of the 8.61 LT target — both indicating that India's fertilizer plants are running at robust utilisation levels.
The government also reported complex fertilizer production of 20.77 LT and SSP output of 13.50 LT for Q1 FY27, though individual targets for these two categories were not disclosed.
A key enabler of the strong urea numbers has been the full restoration of natural gas supply to urea manufacturing plants. Gas availability had fallen to nearly 65% following disruptions caused by the US-Israel joint military action against Iran, but has since been brought back to 100%, enabling all plants to run at full capacity, officials confirmed.
The West Asia conflict had severely disrupted global supply chains, pushing up fertilizer prices and lengthening shipment transit times, with India not spared from the fallout.
Supply chain
Hormuz Crossings Resume; Vessels on Course for Indian Ports
The Fertilizers Ministry reported on July 5 that 15 of 20 vessels carrying imported nutrients and raw materials have safely navigated the Strait of Hormuz and are en route to Indian ports on schedule. The cargo manifest includes:
- 8 vessels carrying 3.32 LT of urea
- 4 vessels carrying 2.57 LT of DAP
- 3 vessels carrying 1.11 LT of Sulphur
A further 5 vessels remain in the pipeline, including one carrying 0.25 LT of Ammonia and another with 0.45 LT of urea. Loading operations are currently under way on two additional urea vessels and one Sulphur vessel.
The Ministry attributed the orderly flow to timely planning, proactive diplomatic engagement, and continuous supply-chain monitoring — steps it says shielded Indian farmers from the worst of the global disruption.
Diplomatic push
India Casts a Wide Net for Diversified Fertilizer Sources
Faced with elevated geopolitical risk in West Asia, the government moved aggressively to diversify its import base. Urea was sourced from Oman, Malaysia, Vietnam, Georgia, Nigeria, Russia, Finland, Egypt, Algeria, Turkiye, and the Netherlands — an unusually broad supplier roster that reduced dependence on any single corridor.
For DAP and complex fertilizers, cargoes were routed via the Red Sea from Russia, Morocco, Egypt, the United States, Jordan, South Korea, Tunisia, and Saudi Arabia.
Union Fertilizers Minister JP Nadda acknowledged that the West Asia conflict had severely disrupted global supply chains, driving up fertilizer prices and extending shipment transit times, with India not entirely immune. The Ministry, however, stated that the combination of diversified imports, higher domestic output, and proactive stocking had ensured satisfactory availability across the country.
Why it matters
Fertilizer availability during the July-September window is critical for Kharif crop nutrition at key growth stages, directly influencing yields and farm incomes. The restoration of full gas supply to urea plants and the safe transit of 15 of 20 import vessels through the Strait of Hormuz significantly reduce near-term supply risk. However, the West Asia conflict has already pushed up global fertilizer prices and lengthened shipping transit times, meaning input cost pressures on farmers and agri-businesses are unlikely to ease immediately. Traders and procurement planners should watch for updates on the five vessels still in the pipeline and any further geopolitical developments affecting Red Sea and Hormuz shipping lanes.
Frequently asked
- How much fertilizer stock does India have for the Kharif season?
- As of July 2, 2026, India held 163.65 lakh tonnes of fertilizer stock, which covers 43% of the total Kharif season demand of 383.9 lakh tonnes for the April-September period.
- Did India's fertilizer production meet its Q1 FY27 targets?
- Yes. Urea production reached 71.55 LT against a target of 67.86 LT, and DAP output came in at 9.84 LT against a target of 8.61 LT — both exceeding their respective goals.
- How did the West Asia conflict affect India's fertilizer supply?
- The US-Israel joint military action against Iran disrupted natural gas supply to Indian urea plants, dropping availability to nearly 65%, and caused shipping delays through the Strait of Hormuz. Gas supply has since been fully restored to 100%, and 15 of 20 import vessels have safely crossed the Hormuz strait.
- From which countries did India arrange emergency fertilizer imports?
- For urea, India sourced supplies from Oman, Malaysia, Vietnam, Georgia, Nigeria, Russia, Finland, Egypt, Algeria, Turkiye, and the Netherlands. DAP and complex fertilizers were arranged from Russia, Morocco, Egypt, the US, Jordan, South Korea, Tunisia, and Saudi Arabia.
Source
This report summarises and analyses coverage from The Hindu BusinessLine — Agri Business. The analysis and India context are IndianAgri's own.