Fertiliser Demand in India is up in a good Monsoon

In 2025, there was an above-average southwest monsoon in India which allowed the kharif crop to be sown, leading to significant pressure on fertiliser demand but supply shortages at the peak season.

Monsoon Boosts Agriculture

• June-August rainfall was 6.1 percent higher than normal, and showers were well-timed and well-distributed.
• Rice acreage increased 7.6, 11.7 percent year over year to 2024.
• Rainfall deficits were only experienced in Bihar, Assam, Meghalaya and Arunachal Pradesh.

Surge in Fertiliser Demand

• The sale of urea, SSP, MOP and NPKS fertilisers increased tremendously.
• DAP sales dropped by 12.8 percent, the latest in a series of declines over the years caused by problems in supply.
• Farmers were replacing DAP by SSP and NPK blends.

Carrying out of Supply and Stock Depletion.

• This year, urea is at 93.6 lt (April-July 2025) compared to 102.1 lt last year.
• DAP output stagnated at 13.7 lt.
• When the Chinese curtailed its supplies, imports fell.
• Urea stocks fell to 37.2 lt (1 August 2025) compared to 86.4 lt in the previous year; the same applies to DAP, NPK, and MOP.

Impact on Farmers

• ROOT shortages occurred at sowing.
• Nitrogen fertiliser in high demand, as acreage of rice and maize is increased.
• Panic buying and long queues in rural areas.

Policy Outlook

• The demand of fertilisers was miscalculated by government in kharif season.
• Rabi demand will be high as the reservoirs are at 83.5% capacity.
• Restrictions on Chinese exports can be relaxed to enhance imports.
• Experts recommend:
• Replacing urea with ammonium sulphate (adds sulphur).
• CAPM on staple crops.
• Encouragement of balanced nutrient utilisation through the use of complex fertilisers.