India to meet 90% of its domestic urea demand by 2030 to improve food security
The expansion aims to cut import dependence and exposure to global price shocks, but experts say India must also improve fertilizer-use efficiency.
India's plans to expand its urea production capacity will meet 90% of the domestic demand by 2030, according to two people familiar with the matter. This move aims to reduce dependence on imports and shield farmers from fluctuating global fertilizer prices, particularly in light of the escalating conflict in West Asia. Currently, India produces approximately 40 million tonnes (mt) of urea annually, with domestic production meeting around 75% of the country's requirements.
However, imports account for the remaining 25%. The expansion is set to increase production capacity to about 43.7 mt, effectively covering 90% of India's projected domestic demand of 48.61 mt by 2030. Each additional 1 mt of domestic capacity that replaces imports can save approximately $500 million annually in foreign exchange, according to a report by EY India.
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