India extends urea import license for Indian Potash Ltd

The Indian government has decided to let Indian Potash Limited (IPL) continue importing urea until March 2026. This move aims to ensure a steady supply of fertilizers and control prices as India still relies heavily on imports. The Directorate General of Foreign Trade announced that IPL’s authority to import urea on behalf of the government has been extended. IPL will work alongside other government-owned companies, such as Rashtriya Chemicals and Fertilizers and National Fertilizers Limited, which already have permission to import this vital nutrient. India does not produce enough urea to meet its needs and imports it mainly from Oman, China, and the UAE. Despite efforts to boost domestic fertilizer production, the country still significantly depends on imports. This extension of IPL's import mandate aims to protect farmers from sudden price increases and ensure they receive fertilizers during the sowing season. Recent data shows urea sales in the current fiscal year have risen by 6.4%, reaching 300.26 lakh tonnes. However, urea imports decreased by 28.9% compared to the previous year, with 43.16 lakh tonnes shipped in the first nine months of the fiscal year. Overall fertilizer imports fell by 18.4% during the same period. India's domestic fertilizer production saw a slight increase of 1.6%, totaling 391.62 lakh tonnes. The government has allocated ₹3.71 lakh crore for food and fertilizer subsidies in the 2025-26 budget, a modest increase from the previous year.