From Financialexpress · Sandip Das · · 1m 20s
Urea Import Costs Drop 60% From May Peak
Urea import prices fell 60% from May 2026 peak to $392/tonne as global supply eased.
In brief
Urea import prices fell 60% from May 2026 peak to $392/tonne as global supply eased. Urea import costs dropped 60% to $392/tonne from May 2026 peak due to diversified imports and reduced global prices. Originally reported by Financialexpress.
Urea Import Costs Fall 60% From Peak
Urea import prices dropped 60% to $392/tonne last month from a May 2026 peak of $947/tonne.
Government Reassessing Fertiliser Subsidy
Officials say the government is reassessing FY27 fertiliser subsidy budget estimates due to global price volatility from the West Asia war.
Diversified Urea Imports
The government imports urea from Oman, Malaysia, Vietnam, Georgia, Nigeria, Russia, Finland, Egypt, Algeria, Turkey, and the Netherlands.
Subsidy Outgo Exceeds FY26
Fertiliser subsidies for FY27 could be 15,000-25,000 crore more than FY26's Rs 2.17 lakh crore due to costlier imports.
FY26 Subsidy Breakdown
In FY26, urea subsidies cost Rs 1.42 lakh crore, with nutrient-based subsidies at Rs 74,999 crore.
Subsidy Spending in FY27
The government spent over Rs 1.14 lakh crore on fertiliser subsidies in the first half of FY27, 65% of the initial budget estimate.
DAP and Sulphur Prices Rise
DAP prices increased 9% to $906/tonne in September, while sulphur prices soared 213% to $1030/tonne due to global conflicts.
The essence
Urea import costs dropped 60% to $392/tonne from May 2026 peak due to diversified imports and reduced global prices.
