India Set for Record $18 Billion Fertiliser Import Bill This Fiscal Year

India’s fertiliser imports are expected to reach about $18 billion in the current financial year, the highest level on record, as per Reuters.  

In the first 9 months of the year ending March, imports rose 71% from a year earlier to $13.98 billion. Large shipments due in the March quarter could add at least another $4 billion to the total. 

March Quarter Shipments Push Numbers Higher 

A substantial volume of urea and other fertilisers is scheduled to arrive before the end of the financial year. These late shipments are expected to account for a significant share of the annual import bill.  

The rise shows higher quantities being brought in to meet domestic requirements rather than a sudden increase in global prices. 

Comparison with Recent Years 

As per Reuters, India spent $10.23 billion on fertiliser imports in the previous financial year. That came after a sharp spike to $17.21 billion in 2022-23, when prices rose globally following the outbreak of the Russia-Ukraine war.  

The current year’s import value is projected to exceed that earlier peak, driven by higher consumption. 

Rainfall Improves Sowing Conditions 

Weather conditions have supported increased fertiliser use. Rainfall during the June to September southwest monsoon was around 8% above the long-term average.  

This was followed by October rainfall that was nearly 49% higher than normal, helping retain soil moisture and supporting the sowing of winter crops. 

Cropped Area Expands 

Agriculture ministry data shows winter crops have been planted across 65.23 million hectares since October 1.  

This is an increase of 3.3% compared with the same period last year. Crops such as wheat, rapeseed and chickpeas have seen wider coverage, leading to higher nutrient demand. 

Urea and DAP Imports Rise 

Urea consumption has increased due to higher rice acreage and stronger maize output. Urea imports are expected to rise by up to 61% from a year earlier to about 9 million metric tonnes.  

Imports of diammonium phosphate (DAP) are also projected to grow, increasing by 52% to around 7 million tonnes. 

Read More: India Records 7.17 MT in Urea Imports During Apr–Nov Period: FAI Data! 

Key Sourcing Countries 

India imports most of its urea and DAP from Oman, Russia, China, Saudi Arabia and Morocco. Supplies from these countries are expected to remain elevated through the end of the financial year, contributing to the higher import bill. 

Conclusion 

With larger crop acreage and steady fertiliser demand continuing into the final quarter, India’s fertiliser imports are on course to reach a new high this year, showing higher volumes linked to favourable rainfall and expanded planting. 

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