Key Insights• India is the world's largest consumer of fertilizers, and its market is defined by a deep reliance on imports. The country imports around 15% of its urea, 60% of its DAP, 75% of its ammonia, and 53% of its sulphur, with the Gulf region historically supplying a major share. This deep import dependence is one of the highest in recent years.• The Strait of Hormuz crisis has exposed a fundamental structural vulnerability, causing the price of urea to spike by 85% in a single month. This has shifted the core challenge from one of physical availability to one of affordability and immense fiscal strain.• The government has responded by massively boosting subsidies, approving a 12% increase for the Kharif 2026 season. As a result, the total subsidy bill for FY26 already ballooned to ₹2.17 trillion, with a projected rise to ₹2.41 trillion for FY27, adding pressure to the national exchequer.• India is undergoing a strategic pivot in its supply chain, aggressively diversifying its import sources away from the Gulf. While nearly 63% of nitrogen imports came from Gulf nations before the crisis, the country has now signed long-term supply deals with alternative partners like Russia and is exploring new trade pacts with Oman.Market Research Report• According to the research report, "India Nitrogenous Fertilizer Market Research Report, 2031," published by Actual Market Research, the India Nitrogenous Fertilizer Market is expected to reach a market size of more than USD 182.92 Million by 2031.• A cost-income squeeze is threatening to erode farmers' profitability for the year.

While the government has kept retail prices for key fertilizers like DAP unchanged at ₹1,350 per 50 kg bag, they are bearing the brunt through a weak monsoon and high input costs. The Indian Meteorological Department has forecast below-normal rainfall at 92% of the long period average, which, when combined with high input costs, could severely compress agricultural incomes.• Production has already taken a hit due to the gas crisis, with a historic drop in March 2026. Fertilizer production declined by 24.6% in March 2026, the sharpest single-month contraction in recent memory. Domestic fertilizer plants are operating at only 60% capacity after the government capped gas allocation at 70% of historical averages.• A significant market shift is visible in the form of spring planting forecasts. The government has revised its Kharif fertilizer requirement estimates downwards, reducing the urea requirement from 194.02 lakh metric tonnes (LMT) to 190.32 LMT. This suggests that farmers may be reducing planted area or substituting less nutrient-intensive crops in response to high input costs.Policies • The core of India's policy response has been the massive expansion of the Nutrient Based Subsidy regime.

On April 8, 2026, the Union Cabinet approved a 12% higher outlay of approximately ₹41,534 crore for the Kharif season compared to the previous year. Under this, per kg subsidy on nitrogen was increased by 10%, phosphorus by 21%, and sulphur by 21.07%, while potash remained unchanged.• The subsidy support has been extended to 28 grades of P&K fertilizers, including DAP and NPKS grades. This measure is designed to "rationalize" subsidies in light of surging international prices and to ensure farmers continue to receive inputs at affordable rates. To prevent retail inflation, the government has kept the maximum retail price of DAP unchanged at ₹1,350 per 50 kg bag.• The government has also focused on supply-side management by strategically releasing buffer stocks. It has also directed state-owned companies to aggressively import using alternative routes. Indian Potash Limited (IPL) was authorized to import 2.5 million tonnes of urea at prices of $935 per tonne for the West Coast and $959 per tonne for the East Coast, sourcing from Russia, Algeria, Nigeria, Egypt, Indonesia, and Malaysia.Import-Export Data• India's total fertilizer import volume surged to unprecedented levels in FY26.

The country imported an estimated 249 lakh metric tonnes (LMT), up sharply from 160 LMT a year earlier. This pushed overall import dependence from 23% to approximately 34%.• For urea specifically, imports nearly doubled between April and October 2025. India imported 58.62 lakh tonnes, a 2.36x increase from the 24.76 lakh tonnes imported during the same period in the previous year. In January 2026 alone, urea imports surged 25.6% year-on-year to 808,198 tonnes.• The import mix has shifted dramatically, with China and Russia becoming dominant suppliers. Between April 2025 and February 2026, India imported 21.24 lakh tonnes of urea from China the highest in three years and 13.99 lakh tonnes from Russia. For phosphatic fertilizers, India imported 5.11 lakh tonnes of DAP and 9.61 lakh tonnes of NPK from China, plus 7.55 lakh tonnes of DAP and 21 lakh tonnes of NPK from Russia.• The February 2026 import data provides a clear snapshot of this diversification.

China supplied 23% of India's nitrogenous fertilizer imports, Qatar 14%, the EU 11%, Oman 10%, Russia 9%, and Nigeria 8%. Shipments from Qatar saw a massive 369% year-on-year jump to 153,325 tonnes, and imports from Russia grew 25% to 99,453 tonnes.Segment AnalysisIndia Nitrogenous Fertilizer Market By Product Type• Urea is the dominant nitrogenous fertilizer in India, with annual production of approximately 30-32 million tons from around 31-35 operational urea plants. Total installed manufacturing capacity is estimated at 34-36 million tons per year, while imports typically range between 6-10 million tons annually to supplement domestic supply. Production consumes approximately 17-19 million tons of ammonia feedstock annually, primarily derived from natural gas-based facilities.• Ammonium nitrate production in India is largely linked to industrial explosives and mining sectors, although limited quantities are used in agriculture. Annual production is estimated at 1.5-2.5 million tons, supported by approximately 10-15 production facilities. Manufacturing capacity is estimated at 2-3 million tons annually, while imports generally range from 100,000-300,000 tons per year.• Calcium Ammonium Nitrate occupies a relatively smaller but growing niche in India, particularly in regions requiring balanced nitrogen application and reduced soil acidity impacts.

Annual production is estimated at 0.8-1.5 million tons, supported by approximately 5-10 production and blending facilities. Imports generally range from 100,000-300,000 tons annually, while exports remain limited. India Nitrogenous Fertilizer Market By Form• Solid fertilizers, including urea, ammonium sulfate, CAN, and other granular nitrogen products, dominate India's nitrogenous fertilizer distribution system. Annual product movement is estimated at 45-55 million tons, supported by approximately 8,000-12,000 fertilizer warehouses and storage facilities across states. India operates around 120-180 bulk fertilizer handling terminals, including major port facilities at Kandla, Mundra, Visakhapatnam, Paradip, and Mumbai. Total storage capacity for solid fertilizers is estimated at 12-18 million tons, with seasonal inventories often reaching 4-7 million tons before Kharif and Rabi planting seasons.• Liquid nitrogen fertilizers, including UAN solutions, liquid ammonia derivatives, and specialty nutrient formulations, represent a smaller but expanding segment due to precision farming and fertigation adoption. Annual transportation volume is estimated at 3-6 million tons, supported by approximately 800-1,500 liquid fertilizer storage facilities and 40-70 dedicated liquid handling terminals.• Anhydrous ammonia serves primarily as an intermediate feedstock for urea and other nitrogen fertilizer production rather than direct agricultural application.

Annual ammonia movement is estimated at 18-22 million tons, supported by approximately 250-400 ammonia storage and handling facilities located near fertilizer complexes and chemical manufacturing hubs. India Nitrogenous Fertilizer Market By Crop Type• Oilseeds and pulses in India include soybean, groundnut, mustard, sunflower, chickpea, pigeon pea, lentils, and mung beans. Total cultivated area is estimated at 42-48 million hectares, with harvested area of approximately 40-46 million hectares annually. Combined production volume ranges from 55-75 million tons, supported by approximately 45-60 million farming households, particularly across Madhya Pradesh, Rajasthan, Maharashtra, Karnataka, and Uttar Pradesh.• Cereals and grains constitute the largest fertilizer-consuming crop category in India, including rice, wheat, maize, barley, millets, and sorghum. Total cultivated area is estimated at 95-110 million hectares, with harvested area reaching 100-120 million hectares due to multiple seasonal cropping. Annual production volume ranges from 330-380 million tons, concentrated in major agricultural states such as Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Bihar, and Telangana. India Nitrogenous Fertilizer Market By Application• Soil application is the predominant method for nitrogen fertilizer use in India, particularly for rice, wheat, maize, sugarcane, cotton, and pulses. Annual fertilizer application volume through soil-based methods is estimated at 38-48 million tons, covering approximately 120-140 million hectares of cultivated land.

Around 110-130 million agricultural holdings utilize soil fertilization, with farmers typically carrying out 2-5 application events per crop season, including basal and top-dressing applications.• Foliar fertilization is widely used in horticulture, cotton, oilseeds, pulses, plantation crops, and high-value vegetable production. Annual fertilizer volume applied through foliar methods is estimated at 1.5-3.0 million tons, treating approximately 18-30 million hectares of agricultural land. Approximately 20-35 million farms utilize foliar nutrient programs to improve nutrient-use efficiency and crop quality.• Fertigation is expanding rapidly with the adoption of drip and micro-irrigation systems, particularly in fruits, vegetables, sugarcane, cotton, and plantation crops. Irrigated farmland utilizing fertigation systems is estimated at 8-12 million hectares, supported by approximately 4-7 million fertigation installations across the country. Annual fertilizer application volume through fertigation is estimated at 4-8 million tons.Considered in this report• Historic Year: 2020• Base year: 2025• Estimated year: 2026• Forecast year: 2031Aspects covered in this report•Nitrogenous Fertilizers Market with its value and forecast along with its segments• Various drivers and challenges• On-going trends and developments• Top profiled companies• Strategic recommendationBy product Type • Urea• Ammonium Nitrate• Ammonium Sulfate• Calcium Ammonium Nitrate (CAN)• Others(UAN (Urea Ammonium Nitrate Solutions), Ammonia (Anhydrous Ammonia), Methylene Urea)By Form• Solid (Granular / Prilled)• Liquid• Gas (Anhydrous Ammonia)By Crop Type• Oilseeds and Pulses• Cereals and Grains• Fruits and Vegetables• OthersBy Application • Soil• Foliar• Fertigation• Others.