India’s Fertiliser Output Slips in FY26; Records First Decline in 13 Years

India’s Fertiliser Production under the Index of 8 Core Industries recorded a 0.1% year-on-year decline in FY26, as per news reports. This is the first contraction since FY13, when output fell 3.3%, and represents the weakest annual performance in 13 years. 

The fall follows a slowdown over the previous 2 years. Growth stood at 3.7% in FY24 and eased to 2.9% in FY25. Since FY13, annual expansion in the sector has averaged just over 2.1%. 

March Data Drives Annual Outcome 

A sharp decline in March 2026 weighed on the full-year numbers. Production dropped 24.6% year-on-year during the month, the steepest fall since monthly data began in April 2012. 

Earlier monthly declines, including those seen during the pandemic period, remained below 15%. The March contraction offset gains recorded in earlier months of the year. 

Urea Production Impacted 

Urea output fell to about 1.8 million tonnes in March, down nearly 27% from a year earlier. Monthly production typically ranges between 2 million and 2.5 million tonnes. 

Lower availability of liquefied natural gas led several plants to advance maintenance shutdowns, affecting output during the month. 

Other Fertiliser Segments 

Production of Phosphorus and Potassium fertilisers also declined. Output in March was estimated between 0.9 million and 1 million tonnes, showing a 16-24% drop compared to March 2025. 

Supply constraints in raw materials contributed to the decline. For complex fertilisers, diammonium phosphate output was lower by about 1.6% until January 2026, while nitrogen-phosphorus and NPKS fertilisers rose nearly 12%. 

Disruptions Earlier in the Year 

Production was affected at the start of FY26 as well. In April, the shutdown of a large urea plant in northern India led to a loss of around 0.5-0.6 million tonnes. Output improved in later months but remained uneven. 

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Conclusion 

FY26 data shows that production levels were affected by supply constraints and plant shutdowns at different points during the year. 

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