India is running low on urea: What's happening
India's running low on urea just as the current kharif planting season kicks in.
Stocks dropped sharply to 37.19 lakh tons by August 1—less than half of last year's levels.
With more farmers growing paddy and maize thanks to good rains, urea sales jumped 12% between April and June, but supplies haven't kept up.
Homegrown production actually fell by 10%
Homegrown production actually fell by 10% this spring, even though imports rose nearly 24% in June.
Prices worldwide have shot up
To plug the gap, National Fertilizers Ltd just called for importing another 20 lakh tons—plus China will send over three lakh tons soon.
Prices worldwide have shot up from $425 to $530 per ton since May, so it's getting expensive fast.
The government has also boosted fertilizer subsidies by over half this quarter (₹31,983.6 crore), with Agriculture Minister Shivraj Singh Chouhan urging states to make sure real farmers get their share on time—and warning against misuse during this crunch period.