India Urea Market Assessment 2025 by Pricing, Production, Consumption and Trade Analysis

NAICS Code: 325311

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India Urea Price Trend Analysis (from Q1-2024 to Q2-2025)

The price shift of urea in India from Q1-2024 to Q2-2025 illustrates a fluctuating market influenced by domestic and global factors. Prices decreased from USD 360 in Q1-2024 to USD 340 in Q2-2024 due to increased domestic production and reduced import reliance following the revival of urea plants by the Government of India.

India Urea Yearly Price Trend, 2021-2024, USD/Ton

A dip to USD 320 in Q4-2025 reflects an oversupply or lower demand during off-season periods, while the rise to USD 400 in Q1-2025 could be driven by an increase in agricultural activity and rising input costs like natural gas.

India Quarterly (Quarter I 2024-Quarter II 2025), USD/Ton & Weekly (W1 to W4 of August 2025), USD/Kg, Price Trend

The prices moderately increased in the second and third weeks of August owing to production challenges at key facilities, such as Ma’aden in Saudi Arabia (a major supplier to India), which reduced the import volumes, tightening supply and driving prices higher.

India Urea Consumption Assessment

India’s Urea Subsidy Scheme (2022-25) was approved with a USD 426.98 million budget by the Cabinet Committee on Economic Affairs (CCEA), which provided USD 62.08 per ton of urea, driving 31 million tons of urea consumption. This affordability sustains its dominance in agriculture.
India has replaced the consumption of 2.5 million tons of conventional urea with nano urea in FY24. India's urea consumption in the 10 months to February 2024 stood at 31.7 million tons

India Urea Production Trend

India produces about 25 million tons of urea annually, ranking as one of the top producers globally. The Indian government has been actively working to increase domestic production capacity, which has grown from 22.5 million tons in 2014-15 to 25 million tons in 2023 and around 31 million tons in 2024, with plans to reach 32.5 million tons after commissioning new plants. Furthermore, as per Fertilizer India, urea represents around 79% of nitrogen fertilizers used in India.

India Urea Trade & Market Flow Indicator

India Urea Importing Volume, 2020-2024 (Tons)

Importers	2020	2021	2022	2023	2024
India	NA	NA	NA	8598258	6519840

Frequently Asked Questions (FAQs)

What are the recent price trends in India’s urea market?

Urea prices in India stood at around USD 360 per ton in Q1 2024 and declined to about USD 340 per ton in Q2 due to higher domestic output. Prices are expected to rise again to nearly USD 400 per ton in Q1 2025 with increased agricultural demand and higher feedstock costs.

How much urea does India consume annually?

India’s urea consumption reached approximately 31.7 million tonnes in FY2024, supported by government subsidies and the growing adoption of nano-urea, which replaced nearly 2.5 million tonnes of conventional urea that year.

What is the production status of urea in India?

India’s urea production increased from about 22.5 million tonnes in 2015 to nearly 31 million tonnes in 2024, with additional capacity expected from new plants. Urea remains the dominant nitrogen fertilizer, accounting for nearly 79% of the country’s total use.

What factors are influencing urea prices in India?

Prices are affected by changes in natural gas costs, global supply constraints, and domestic policy support. Government subsidies and the introduction of nano-urea have also played key roles in shaping market stability and consumption trends.

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