7.3 MMT
Urea Imported FY24
25.1 MMT
Domestic Production FY24
~$8B
Govt Fertilizer Subsidy
India's Urea Dependency: A Strategic Commodity
India is the world's second-largest consumer of urea after China, with an annual requirement of approximately 33–35 million metric tonnes (MMT). Despite being a significant domestic producer (25.1 MMT in FY24), India consistently imports 7–9 MMT per year to bridge the supply-demand gap.
The Indian government heavily subsidises urea under the Nutrient Based Subsidy (NBS) scheme, making it the most price-sensitive agricultural input in the country. This creates a unique trading environment where government tenders (through STC, MMTC, and IFFCO) drive bulk procurement at global competitive prices.
🏛️ Government Controls India's Urea Trade
Unlike most commodities, urea import in India is channeled through designated canalising agencies — primarily STC (State Trading Corporation), MMTC, and fertiliser companies like IFFCO and KRIBHCO. Private direct import is not permitted for subsidised urea, making the trade B2G (Business-to-Government) in nature.
India Urea Import Volume — 5-Year Trend
Import volumes surged in FY22 due to post-COVID demand recovery and China's export restriction. FY23 and FY24 show normalisation as domestic production increased.
India Urea Import Volume (MMT) vs Domestic Production (MMT)
Urea Import Source Countries & Price Trends
Urea Import Source Countries (% Share, FY24)
Global Urea Spot Price (USD/MT, Monthly FY23–FY24)
📌Data Sources: Ministry of Chemicals & Fertilizers (
fert.nic.in), DGFT, IFFCO, FAO Agricultural Data, World Bank Commodity Price Data, Fertecon Research.
Best Countries to Source Urea for Indian Trade
🇴🇲
Oman
Top Supplier · 26% Share
OQ (formerly Oman Oil & Orpic Group) produces prilled and granular urea. Proximity to India keeps freight competitive.
🇸🇦
Saudi Arabia
21% Share
SABIC and Ma'aden are key suppliers. Saudi granular urea is widely used in Indian agriculture. High quality consistency.
🇶🇦
Qatar
17% Share
Qafco (Qatar Fertiliser Company) is one of world's largest urea producers. Prilled urea for Indian market.
🇨🇳
China
13% Share (Variable)
China's urea availability is highly policy-dependent. When export quotas open, China offers competitive pricing.
🇦🇪
UAE
12% Share
Fertiglobe (Abu Dhabi) is UAE's major producer. Good logistics and trade finance support available.
🇮🇩
Indonesia
Emerging Supplier
Pupuk Indonesia is expanding capacity. Competitive pricing with growing export availability. Good for spot purchases.
| Country | FY24 Volume (MMT) | % Share | Avg. Price (USD/MT) | Product Type |
|---|
| Oman | 1.90 | 26% | $295 | Prilled & Granular |
| Saudi Arabia | 1.53 | 21% | $302 | Granular |
| Qatar | 1.24 | 17% | $288 | Prilled |
| China | 0.95 | 13% | $275 | Prilled (spot) |
| UAE | 0.88 | 12% | $308 | Granular |
| Indonesia | 0.51 | 7% | $285 | Granular |
| Others | 0.29 | 4% | $298 | Various |
How We Help
Jaitwoc International in the Urea & Fertilizer Trade
While large-scale subsidised urea import is government-channeled, Jaitwoc International supports private sector fertilizer traders, distributors, and agricultural input companies in navigating the complex urea trade ecosystem.
🔗Supplier Connections
Connect with verified urea and fertilizer suppliers across the Middle East, Southeast Asia and Europe for B2B trading.
📋Trade Documentation
SGS/BV inspection coordination, Letter of Credit guidance, Bill of Lading, Certificate of Analysis support.
🚢Logistics Coordination
Bulk vessel and bagged fertilizer shipment coordination. Port clearance guidance at major Indian ports.
📊Market Intelligence
Price trend alerts, tender information, and market intelligence for fertilizer buyers and traders.
Discuss Your Fertilizer Trade Requirement
Frequently Asked Questions
Can private companies import urea directly into India?+
For subsidised urea, import is canalised through government-designated agencies (STC, MMTC, IFFCO, KRIBHCO). However, non-subsidised specialty fertilizers and technical-grade urea (industrial urea for resins, adhesives, pharmaceuticals) can be imported by private entities with appropriate IEC and import licenses.
What is the difference between prilled and granular urea?+
Prilled urea is produced by solidifying liquid urea droplets (smaller, round particles, 1–2mm). Granular urea is larger (2–4mm), harder, and more suitable for mechanised spreading. India imports both, but granular is increasingly preferred for paddy and wheat cultivation due to lower dust loss and better soil incorporation.
How does China's urea export policy affect India's import cost?+
China is the world's largest urea producer but intermittently restricts exports through quotas and port inspection delays to protect domestic supply. When China opens exports (typically Oct–Feb), global urea prices fall 10–20%, directly benefiting Indian tenders. When China restricts exports, India shifts to Middle East suppliers at slightly higher prices.
